higher than WACC § Project Z would be accepted based on WACC § BUT: Project Z is more risky than firm as a whole § Its return is lower than the expected return from CAPM (it is below the SML) § Reject Project Z 8 Solutions to the problem § Pure play (opposite of conglomerate) § Use WACC of “pure play” companies in the same industry (a pure play company operates in a single industry only: for example‚ Blackberry maker Research in Motion is a pure play in smart phones and
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Student Name: Student ID Number: THE UNIVERSITY OF NEW SOUTH WALES JUNE / JULY 2006 FINS1613 Business Finance – Final Exam (1) TIME ALLOWED - 2 hours (2) TOTAL NUMBER OF QUESTIONS - 50 (3) ANSWER ALL QUESTIONS (4) ALL QUESTIONS ARE OF EQUAL VALUE. (5) THIS PAPER MAY NOT BE RETAINED BY CANDIDATE (6) CANDIDATES MAY BRING A PENCIL AND ERASER TO THE EXAMINATION. CANDIDATES MAY NOT BRING THEIR OWN CALCULATORS (7) THE FOLLOWING MATERIALS WILL BE PROVIDED
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Introduction In this report‚ I will analyze the financial performance of SDB by comparing it with its industry peers. SDB’s asset quality‚ earnings capability and capital adequacy are the three aspects I will pay attention to when evaluate its financial performance. Then I will discuss whether it is appropriate for Newbridge to pay 1.6 times book value for 18% shares in SDB. And what is appropriate range for the price Newbridge can offer. The objective of this report it to assist Newbridge
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University of Phoenix Material Week Two Practice Problems Prepare a written response to the following questions. Chapter 2 12. For the following scores‚ find the mean‚ median‚ sum of squared deviations‚ variance‚ and standard deviation: 1‚112; 1‚245; 1‚361; 1‚372; 1‚472 Mean is 1312 Median is 1361 Sum of squared deviations is 76089.2 Variance is 15218 Standard deviation is 123.361 16. A psychologist interested in political behavior measured the square footage of the desks in the official
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Financial Management 1. Happy Valley‚ Inc. stock is valued at $51.40 a share. The company pays a constant dividend of $3.80. What is the required return on this stock? Po = D/Rs $51.40 = $3.80/Rs Rs = 7.39% 2. The Francis Company is expected to pay a dividend of D1 = $1.25 per share at the end of the year‚ and that dividend is expected to grow at a constant rate of 6.00% per year in the future. The company’s beta is 1.15‚ the market risk premium is 5.50%
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1.1) Belinda’s 2010-11 taxable income: Assessable Income Gross Salary $67‚500 Unfranked dividends $2‚300 Total Assessable Income $69‚800 Less Allowable deductions PAYG tax instalments deducted ($15‚500) Subscriptions ($130) Union fees ($600) Telephone expense ($280*30%) ($84) Total allowable deductions ($16‚314) Taxable Income $53‚486 Note: Stationery is considered to be expenditure of a private nature thus
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1. Cheers Inc. operates as a partnership. Now the partners have decided to convert the business into a corporation. Which of the following statements is CORRECT? (Points: 5) a. Cheers™ shareholders (the ex-partners) will now be exposed to less liability. b. Cheers will now be subject to fewer regulations. c. Assuming Cheers is profitable‚ of its income will be subject to federal income taxes. d. Cheers™ investors will be exposed to less liability‚ but they will find it more difficult to transfer
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Policy implementation—a review of literature Introduction: Implementation has been defined as “the carrying out of a basic policy decision ‚ usually incorporated in a statute but can be in form of important executive orders or court decisions”(mazmanian and sabatier 1983). It has also been defined as those actions by people that are directed at achievement of objectives set forth in the policy decision (van meter and van Horne 1974). Thus Policy implementation is what develops between an intention
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classification and modes of investment. • Secondly: Influencing factors‚ process‚ feature‚ source of risk‚ recent trends and problems of investment. • Thirdly: Meaning‚ characteristics‚ difference in speculation‚ investment and gambling. 2 Investment Management MEANING AND CONCEPT OF INVESTMENT Investment is a term for several closely related meanings in finance and economics. Investment according to Theoretical Economics Investment means the production of capital goods - goods which are
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Three Social Problems in America Homelessness is‚ in fact‚ a social problem facing America today. This is partially due to the lack of secure and safe shelter available to those in need. Another contributing factor is unemployment‚ leading people to be unable to afford decent housing. The economic crisis our country is in has led to financial cuts and many job losses. This is a social problem because it negatively impacts the quality of our society and the lifestyle of many Americans. It could
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