Solution 1: (i) P0 = D1 Ke - g CA – IPC TEST CAPITAL STRUCTURE = 3.50 (1.06) 0.15 – 0.06 = `41.22 (ii) Ke = D1 + g P0 0.15 = 3.50 (1 + g) + g 50 7.50 = 3.50 + 3.50g + 50g g= 4 = 7.48% 53.5 Solution 2: (i) Determination of EPS at EBIT level of `22‚00‚000 Financing Plan (a) (b) Equity Shares (`) Debentures (`) Pref. EBIT 22‚00‚000 22‚00‚000 Less: Interest (16‚000) (1‚21‚000) Taxable Income 21‚84‚000 20‚79‚000 Less: Tax @ 30% (6‚55‚200) (6‚23‚700) EAT 15‚28‚800 14‚55‚300 Less: Dividend on Pref
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1. What is meant by diversity? Diversity is the word used to describe how people vary and differ. Some personal differences may be: age‚ gender‚ sexual orientation‚ race‚ religion‚ interests‚ social class and values and beliefs. 2. Describe the community you live in. Highlight some of the variations you may observe in terms of: Birmingham is the most culturally diverse city in the UK. In the local community there are people of both genders and of all ages. People come from all over the
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Optimal Model for Health Care Stephanie Fontes ECON 402—Wednesday’s Class Due Date: November 2nd‚ 2011 What is an optimal model for health care? This is a highly debated issue internationally. Much of the debate centers around whether health care should be treated as a type of public—good supplied by the government and funded by taxpayers. Others believe that a better system is delivered by the private sector. Another model advocates a public/private mix. This analysis will consider
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Siemens AG Financial Analysis Capital Structure and current financial situation 12/5/2012 Andon Pavlov‚ 296181 Company Review Siemens AG is a German multinational engineering and electronics conglomerate company headquartered in Munich‚ Germany. It is the largest Europe-based electronics and electrical engineering company. Siemens’ principal activities are in the fields of industry‚ energy‚ transportation and healthcare. It is organized into five main divisions: Industry‚ Energy‚ Healthcare
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engineering‚ construction and technical services firm that offers program management; planning‚ design and engineering; systems engineering and technical assistance; construction and construction management; operations and maintenance; and decommissioning and closure services (URS‚ 2010). With approximately 46‚500 worldwide employees and total global revenues of $9.25 Billion in fiscal year (FY) 2009‚ URS ranks as one of the largest engineering design firms in the world. URS is a publicly traded company
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Contents :- Introduction on Capital Structure……………………..5 Summary and Evaluation of Articles…………………6 Conclusion………………………………………………………..8 References/Bibliography………………………………….9 Introduction On Capital Structure :- In the field of finance capital structure means a way an organization or firms finances their assets by the way of some mix and match of Equity‚ Debt or Hybrid Securities. The modern thinking on capital structure is based on the Modigliani-Miller theorem given by Franco Modigliani
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CHAPTER 13 CAPITAL STRUCTURE AND LEVERAGE (Difficulty: E = Easy‚ M = Medium‚ and T = Tough) Multiple Choice: Conceptual Easy: Business risk Answer: c Diff: E [i]. A decrease in the debt ratio will generally have no effect on . a. Financial risk. b. Total risk. c. Business risk. d. Market risk. e. None of the above is correct. (It will affect each type of risk above.) Business risk Answer: d Diff: E [ii]. Business risk
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What is meant by multiple intelligence? The generally accepted view of intelligence is that it is about cognitive or mental ability. Charles Spearman‚ one of the early pioneers in thinking about intelligence called it the ‘g’ factor‚ and intelligence tests have been designed to measure it. However‚ few people now believe that intelligence is a concept that can be described in such simple terms‚ and some have sought to explore our understanding of intelligence more fully. The best known and
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What is meant by Blood Diamonds (or conflict diamond)? How‚ as portrayed in the video‚ does it impact on political‚ economic and ethical stability? It is sad to witness the abuse and unfair treatments of the poor people in countries such as Africa have to undergo in order to make some money. Also it is sad to know that after all that hard work these people put into what they do‚ these diamonds are smuggled and used to fund illegitimate activities. The Blood Diamond conflict has had serious
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Assignment 2: Business Financing and the Capital Structure Principles of Finance Finance 100 December 12‚ 2013 Business Financing and the Capital Structure Raising Business Capital As a financial advisor to this business there are two options to consider for raising business capital‚ equity financing and debt financing. The details‚ advantages‚ and disadvantages of both options will be provided. Also information about raising capital by selecting an investment banker
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