"Wacc formula seems to imply that debt is cheaper than equity" Essays and Research Papers

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    Physics Formulas

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    acceleration due to gravity at the Earth’s surface (g) g’ = (re2 / r2) g Acceleration due to gravity inside the Earth Here let r represent the radius of the point inside the earth. The formula for finding out the acceleration due to gravity at this point becomes: g’ = ( r / re )g In both the above formulas‚ as expected‚ g’ becomes equal to g when r = re. PROPERTIES OF MATTER Density The mass of a substance contained in unit volume is its density

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    Private Equity

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    FIN 527 Alternative Investments | Private Equity | Project 1. | | Wei Chen‚ Ye Zhang | | | Part 1. Performance Measurement for Private Equity a) Summary statistics for venture capital and buyout returns: Histograms of returns: The return distribution of venture capital has a kurtosis of 23.25 and a skewness of 3.63‚ which means it is leptokurtic and skews to the right. It is not close to normal distribution. Mainly due to the high returns in late 1990s during the

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    Econ Formulas

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    2008 and $1‚790 million from a divestiture of a pharmaceuticals subsidiary in October 2009. The NPM would have followed the same upward trend as Net Sales if these gains did not occur. The results of the Return on Assets (ROA) and Return on Equity (ROE) are both downward trends‚ which are also due to the gains in Extraordinary Items. If the extraordinary gains were not included in the ROA and ROE ratios‚ then the trends would be upward or stable‚ depicting proper asset investing and sufficient

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    Derivation of Formulas

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    DERIVATION OF FORMULAS constant acceleration In order to be accurate‚ the title of this section should be "One Dimensional Equations of Motion for Constant Acceleration". Given that such a title would be a stylistic nightmare‚ let me begin this section with the following qualification. The equations of motion are valid only when acceleration is constant and motion is constrained to a straight line. Given that we live in a three dimensional universe in which the only constant is change‚ you may

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    Customer Equity

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    Customer equity is a result of customer relationship management. Customer equity is the total of discounted lifetime values of all of the firms customers. In layman terms‚ the more loyal a customer‚ the more is the customer equity. Firms like McDonalds‚ Apple and Facebook have very high customer equity and that is why they have an amazing and sustainable competitive advantage. Customer Equity is made up of three components. Value Equity‚ Brand Equity and Relationship Equity. Value Equity

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    Equity Theory

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    Equity Theory by John Stacey Adams Equity Theory attempts to explain relational satisfaction in terms of perceptions of fair/unfair distributions of resources within interpersonal relationships. Equity theory is considered as one of the justice theories; it was first developed in 1962 by John Stacey Adams‚ a workplace and behavioral psychologist‚ who asserted that employees seek to maintain equity between the inputs that they bring to a job and the outcomes that they receive from it against the

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    Shareholder's Equity

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    Ch. 18: Shareholders’ Equity What is Shareholders’ Equity? Accounts that represent the ownership interests of shareholders. Shareholders’ Equity = Assets - Liabilities Amount left over after creditor claims have been satisfied (like homeowners equity) Shareholders’ Equity appears two places within the financial statements: 1.) Shareholder’s Equity section of the balance sheet Example 1: Abbreviated Balance Sheet – The Gap‚ Inc. THE GAP‚ INC. CONSOLIDATED BALANCE

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    Finance and Debt

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    the required return on a firm’s equity. Explain. MM Proposition II states that higher debt does not affect cost of capital of a firm. The reason is that the lower cost of debt is offset by a greater cost of equity‚ which means investors demand a higher return on equity as a result of the higher risk coming with more debt‚ that holds the firm’s cost of capital unchanged. Based on the above proposition‚ moderate borrowing may not increase the return on equity. It is suggested that the firm’s

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    Equity Law

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    FE1 EQUITY & TRUSTS NIGHT BEFORE NOTES 8 Key Topics for Revision • • • • • • • • Maxims Injunctions‚ particularly Interlocutory Quia Timet Injunctions and Anton Piller Orders Rescission Secret Trusts Charitable Trusts Resulting Trusts Trusteeship Tracing 1. MAXIMS This topic is usually examined as one part of a three part question‚ where candidates have to attempt two parts. It has always been a straightforward essay style question. In some years‚ the Examiner asked about their contemporary relevance

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    Brand Equity

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    Brand Equity A brand represents a “name‚ term‚ sign‚ symbol‚ or design‚ or a combination of them intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competition.” Without a recognizable brand‚ a product is but a mere commodity. It’s more than just a name‚ term‚ symbol‚ etc. – a brand is everything that one company’s particular offering stands for in comparison to other brands in a cate-gory of competitive products. As the value

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