crisis. The portfolio is comprised of three benchmark indexes from Romania‚ UK and USA. Study results show that on the background of a global economic climate eroded strongly by the effects of the current financial crisis‚ international diversification does not reduce risk. Moreover‚ using ARCH and GARCH models shows that the evolution of portfolio volatility is influenced by the effects of the current global financial crisis. Keywords: global financial crisis; diversification; volatility; ARCH model;
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2. TELETECH CORPORATION 1. How does Teletech Corporation currently use the hurdle rate? Currently Teletech uses a single hurdle rate for both their Telecommunications Services and Products and Services divisions. The hurdle rate is the cost of capital based on an estimate of the corporation’s WACC. 2. Please estimate the segment WACCs for Teletech (see the worksheet in case Exhibit 1). As you do this‚ carefully note the points of judgment in the calculation. Corporate Telecommunications
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T-4 Failure to identify and document cost estimating standards and provide written policies and procedures to persons responsible for preparing‚ supporting and reviewing cost estimates. T-10 Excessive reliance on individual personal judgement where historical experience or cost estimating standards are available. THREATS NEIGHBORHOOD SERVICES DEPARTMENT: T-6 Inadequate staff training in the preparation‚ review and approval of cost estimates. T-5 Inadequate staff training in the preparation
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million; tax rate (T) is 35%; debt outstanding (D) $2 million; kd 10%; ke 15%; shares of stock outstanding (N0) 600‚000; and book value per share $10. Since Gentry’s product market is stable and the company expects no growth‚ all earnings are paid out as dividends. The debt consists of perpetual bonds. a. What are Gentry’s earnings per share (EPS) and its price per share (P0)? b. What is Gentry’s weighted average cost of capital (WACC)? c. Gentry can increase its debt by $8 million‚ to a total
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[pic] c. Optimal profit from Problem #1 = 331 Current optimal profit = 371 The difference is due to the effect of Sheen’s effort on the demand. This relation is not surprising. Players in the different stages of a supply chain can increase demand for their product through efforts in advertisement‚ product development etc. Problem #3 a. Armentrout’s optimal stocking quantity is 516. b. Armentrout’s cost of overstocking ($0.80) is significantly higher than his cost of understocking
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punishment for evil or wrong. Specifically‚ reward and punishment‚ as distributed at the general judgment. Incapacitation Executions maximize public safety through a form of incapacitation and deterrence. Incapacitating a person is depriving s/he of the physical or intellectual power of natural of il/legal qualifications (Webster‚ 574). Executing a person takes away the capacity of and forcibly prevents recurrence of violence. Deterrence is the act or process of discouraging and preventing
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CHAPTER 6 PRODUCTION EXERCISES 4. A political campaign manager must decide whether to emphasize television advertisements or letters to potential voters in a reelection campaign. Describe the production function for campaign votes. How might information about this function (such as the shape of the isoquants) help the campaign manager to plan strategy? The output of concern to the campaign manager is the number of votes. The production function has two inputs‚ television advertising and
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BUSINESS RESEARCH METHODOLOGY BOARD EFFECTIVENESS AND COST OF DEBT by : FARUQ AKURAT 100810251004 ECONOMIC FACULTY JEMBER UNIVERSITY 2011 / 2012 Board Effectiveness and Cost of Debt ABSTRACT Does the board of directors influence cost of debt financing? This study of a sample of Spanish listed companies during the period 2004–2007 provides some evidence about the question. The results suggest that two board attributes – director ownership and board activity – appear to influence
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“social capital.” Social capital is meant to capture the value‚ economic and otherwise‚ that comes from social networks‚ through which people frequently interact with one another. But what if social capital ends up contributing to the rise of extreme movements‚ including fascism? It is well-established that individuals and societies can gain a great deal from civic institutions‚ such as parent-teacher associations‚ athletic leagues‚ churches and music clubs. High levels of social capital have been
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The capital market supply long term funds to corporations‚ government entities and other users of capital. The general type of debt instrument of the capital market is the bond. Bonds usually pay interest to the holder once in every six months (semi annually) and pay the principal or face amount upon maturity. Treasury notes and treasury bonds: The long term bond issues of the treasury that are available to investors are the treasury notes and the treasury bonds. Treasury notes have original fixed
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