CHAPTER 11: THE COST OF CAPITAL LEARNING GOALS: 1. Understand the key assumptions‚ the basic concept and the specific sources of capital associated with the cost of capital. 2. Determine the cost of long-term debt and the cost of preferred stock. 3. Calculate the cost of common stock equity and convert it into the cost of retained earnings and the cost of new issues of common stock. 4. Calculate the weighted average cost of capital (WACC) and discuss alternative weighing schemes
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Cost of Capital Firms need to make capital investment i.e.‚ purchasing fixed assets such as factories‚ machineries‚ equipment‚ etc. After deciding what capital investments to make‚ they need to decide on the financing – sources of capital. The sources: Long-Term Debt‚ Common Stock‚ Preferred Stock and Retained Earnings. Then they need to find the cost of obtaining each source of financing today (not historical). Cost of Capital - The rate of return that a firm must earn on its investment
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Chapter 4: Costs and Cost Minimization Multiple Choice 1. Suppose you are a star basketball player at a major university in your sophomore year. You are sought after by several NBA teams. Which of the following choices best characterizes your opportunity cost if you choose to drop out of college and enter the NBA? a) The value of your college scholarship that you have given up. b) The skills that two more years of playing at your college would have given you along with their additional value
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tuitions impact students‚ local employers‚ and educational institutions? Executive Economics Outline Thesis: How do rising tuitions impact students‚ local employers‚ and educational institutions? I. Tuition Costs A. Enrollment Supply B. Enrollment Demand II. Economic Theory A. Impact on Students B. Impact on Educational Institutions C. Impact on Local Employers III. Higher Educational Costs A.
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Cost-Benefit Analysis and Project Budget We are creating a Smartphone application for use as a travel aid for the public and the profit will be donated to the partnership for children charity. The total budget allocated for this project is £20‚000. We have £10‚000 from our own funds and we will be using this fund for the promotion of the app with £10‚000. The council has also provided us with £10‚000 subsidy. We have used our funds on Feasibility‚ User Requirement and Analysis‚ Design‚ Coding
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relação semântica que introduzem. ( ) addition ( ) cause ( ) consequence ( ) contrast A. This is one possible solution to the problem. However‚ there are others. B. If this project fails it will affect not only our department‚ but also the whole organization. C. We were unable to get funding and therefore had to abandon the project. D. Due to wet leaves on the line‚ this train will arrive an hour late. (Sentences from the Cambridge Advanced Learner’s Dictionary) O quadro abaixo lista quatro relações
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Unemployment What is unemployment cost ? Unemployment is well as something bad ‚ most economist agree that high levels of unemployment are costly not only to a person directly affected but also as the economy as a whole. Some economist are convincing themselves that there is a certain level of unemployment that we can not erased. Elevated unemployment imposes significant cost on someone‚ the society and the county. The cost of unemployment to the individual is not something
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Psychology (School year 2011-2012) By: Submitted to: September 2011 TABLE OF CONTENTS Dedication i Acknowledgment ii Introduction iii What is Parapsychology? 1 Why is Parapsychology Important? 1 Current Evidence for Parapsychology 2 Parapsychological Activities 3 Ganzfeld 3 Remote Viewing 5 Psychokinesis on Random Number Generators 6 Direct Mental Interactions with Living System 7 Near
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December 12‚ 2011 Complete Study Problem 13-5 from the end of Chapter 13 of the text and submit to your instructor. Clearly label the calculation of the required ratios and solve using Excel. Use formulas to calculate the ratios and format the cells to insert a comma if there is more than three numbers. Round dollar amounts to the nearest whole dollar. Summarize your analysis in a concise management statement not to exceed 100 words. 13-5. (Flotation costs and issue size) D. Butler Inc. needs to
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networks to reduce telephone and facsimile costs and to set the stage for advanced multimedia applications and services such as unified messaging‚ in which voice‚ fax‚ and e-mail are all combined. [Include description of selected VoIP product(s) or solution(s) here‚ including features‚ benefits‚ etc.] This business case explores the opportunities and benefits that can be realized in the deployment of VoIP product(s) or solution(s)‚ as well as the costs and associated risks involved. However‚ the
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