2. What is the maximum price they could expect to pay Monmouth‚ based on an analysis of valuation using discounted cash flow‚ calculation of WACC and terminal value determination? 2. Based on the DCF valuation and using a WACC of 8.25% (the beta assumed to be 1‚ the average beta of comparable firms and the coupon rate to be 7.96%‚ the rate for BB rated companies) and a growth rate of 5.5%. The fair price is $40.4 per share for Robertson‚ lower than the $50 offered by Simmons to sell their
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CAPITAL BUDGETING Cost of Capital Evaluating Cash Flows Payback‚ discounted payback NPV IRR‚ MIRR The Cost of Capital • Cost of Capital Components – Debt – Common Equity • WACC Should we focus on historical (embedded) costs or new (marginal) costs? The cost of capital is used primarily to make decisions which involve raising and investing new capital. So‚ we should focus on marginal costs. What types of long-term capital do organizations use? nLong-term debt nEquity Weighted
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as the discount rate in net present value (NPV) project appraisal techniques.1 The weighted-average cost of capital (WACC) represents the overall cost of capital for a company‚ including the costs of equity and cost of debt‚ weighted according to the proportion of each source of finance within the business. In easy words WACC measures a company’s cost to borrow money. The WACC equation is the cost of each capital component multiplied by its proportional weight and then summing: Where: Re
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HP 10bII+ Financial Calculator User’s Guide HP Part Number: NW239-90001 Edition 1‚ May 2010 i Legal Notice This manual and any examples contained herein are provided “as is” and are subject to change without notice. Hewlett-Packard Company makes no warranty of any kind with regard to this manual‚ including‚ but not limited to‚ the implied warranties of merchantability‚ non-infringement and fitness for a particular purpose. In this regard‚ HP shall not be liable for technical or editorial
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1. Why do think Larry Stone wants to estimate the firm’s hurdle rate? Is it justifiable to use the firm’s weighted average cost of capital as the divisional cost of capital? Please explain. (10% weighting) Answer The hurdle rate is the rate of return a firm has to offer finance providers to induce them to buy and hold financial security. (Arnold‚2007). This is also known as cost of capital or weighted average cost of capital. The returns offered by alternative securities with the same risk
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weighted average cost of capital (WACC) to be 8.3%. I find error in this calculation as a result of the following points of disagreement: a) Weighting of Capital Structure: Use of book values of capital rather than the market values b) Cost of Debt Calculation: Incorrect method for calculating debt c) Tax Rate: Use of a tax rate derived from the summation of state and statutory taxes instead of the firm’s marginal tax rate 2. Revised Calculation of WACC: WACC reflects the weighted average
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HISTORY OF COMPUTERS Ancient era Suanpan (the number represented on this abacus is 6‚302‚715‚408) Devices have been used to aid computation for thousands of years‚ mostly using one-to-one correspondence with fingers. The earliest counting device was probably a form of tally stick. Later record keeping aids throughout the Fertile Crescent included calculi (clay spheres‚ cones‚ etc.) which represented counts of items‚ probably livestock or grains‚ sealed in hollow unbaked clay containers.[1][2]
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The Chinese Abacus The abacus‚ a very important invention‚ was invented in Ancient China. We still use abacus but know it is known as a calculator. The abacus is a wooden frame with rows of wood along which beads are slid. One famous mathematician named Cheng Dawei in ancient China invented the Abacus. The abacus was invented around 2600BC by the Chinese. A typical abacus has 13 columns that are divided into two with each column having two beads on top and five at the bottom. The abacus was
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your calculator and the aluminum dynamics cart track. The Experiment: 1. Find the coefficient of static friction by slowly raising the incline plane until the block just begins to slide. Note the angle. Repeat 3 times and average to accurately find the angle of repose. 2. Determine a method in which the coefficient of kinetic friction can be determined. 3. Perform your experiment to determine the coefficient of kinetic friction for the rubber stoppers on your calculator cover
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1625ml | # | 20th May | 100ml | 200ml | 100ml | Refused | 400ml | 400ml | 1400ml | # | Total amount of fluid over 20 days = 21‚300mls Calculations for the total over 20 days * Mean 21300 = 1065mls 20 (This was checked with the use of a calculator) * Mode Using the chart above looking at the totals and using the below code you can see the mode is 1580. = appears more than once. *
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