at 4.5% * JP Morgan has issued an estimate for Expected Market Return at 8.5% * Euribor is 2% * Before tax cost of debt = 5% * Tax rate = 30% Please calculate the weighted average cost of capital (WACC) for this firm. 2. You are now asked to calculate the WACC for a toothpaste manufacturer with the following data: * Average share price for last 6 months = €34/ share * Current year’s dividend = €3/ share * Applicable growth rate = 3% * Tax rate =
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Minerals are important for maintaining homeostasis which essentially is a big part of what keeps us alive. Minerals are inorganic compounds（lack of carbon atom)‚ which are quite different from other nutrients. The reason is that carbohydrates‚ proteins‚ lipids‚ and vitamins are all organic compounds(contains carbon) . The structure of minerals is very simple‚ usually nothing more than a molecule‚ or molecules. Most of the minerals in a diet come from eating plants and animals or from drinking water
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dying in battle. Compared to the official religion of the Holy Roman Empire at the time‚ which was Catholicism‚ warfare really was not emphasised. With the writing of the New Testament‚ which focused more on grace and forgiving‚ war has not been as important to the Holy Roman Empire‚ as it has been. With warfare not on the minds of the Holy Romans‚ the need to upgrade weapons was unnecessary‚ let alone invent new ones. They did not bother to add any different tools of destruction to a knight’s training
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countless hours researching various diet plans I came across some information on juicing. I found out that there were ways to get your daily recommended value of fruits and vegetables with just a few easy glasses each day. This sounded like a good idea so I decided to get a juicer and start juicing. I knew juicing would be the most beneficial and quickest way to returning to full health‚ but still remained somewhat skeptical. My thought process was that it couldn’t hurt to obtain additional produce
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ENTERPRISES 1. Title of the business: KAMERAWORLD Type of business: PHOTO SERVICES Business Owner: MRS. MARIA ALBA Years of operation: 2YEARS (25 YEARS AS KODAK) 2. Title of the business: MANDING’S FRUIT STAND Type of business: MERCHANDISE Business Owner: MR. ARMANDO LASAP Years of operation: 6 YEARS 3. Title of the business: KING LOUIE SCHOOL & OFFICE SUPPLIES Type of business: Business Owner: MR. STEPHEN GO Years of operation: 20 YEARS 4. Title of the business: JPL MARIO ELECTRONICS
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2. What is the maximum price they could expect to pay Monmouth‚ based on an analysis of valuation using discounted cash flow‚ calculation of WACC and terminal value determination? 2. Based on the DCF valuation and using a WACC of 8.25% (the beta assumed to be 1‚ the average beta of comparable firms and the coupon rate to be 7.96%‚ the rate for BB rated companies) and a growth rate of 5.5%. The fair price is $40.4 per share for Robertson‚ lower than the $50 offered by Simmons to sell their
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Capital Evaluating Cash Flows Payback‚ discounted payback NPV IRR‚ MIRR The Cost of Capital • Cost of Capital Components – Debt – Common Equity • WACC Should we focus on historical (embedded) costs or new (marginal) costs? The cost of capital is used primarily to make decisions which involve raising and investing new capital. So‚ we should focus on marginal costs. What types of long-term capital do organizations use? nLong-term debt nEquity Weighted Average Cost of Capital is
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Nilima Rawal BMGT110 University of Maryland University College September 23‚ 2012 Abstract For my interview I decided to choose the owner of 6 different Subway Restaurants in Maryland. It was an honor to interview my friend "Mr. Sharad Doshi". He has been in this industry for past five years. I chose him because he has been an inspiration to everyone. Looking at his accomplishments‚ makes us feel very proud and I knew for sure‚ for me‚ the best person to interview would
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Interview a Business Owner Due: January 7‚ 2009 For my interview I decided to pick the owner of the company I work for. The owner’s name is J. Kent McNew and he is the owner of Eastern Petroleum Corporation. The company is a petroleum distributor of gasoline primarily through gas station outlets. Eastern Petroleum Corporation is a Maryland corporation and its corporate office is located in Annapolis‚ MD. Mr. McNew sells products in MD‚ VA‚ DC‚ and some in DE. The scope of the business is done in
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providers of finance for investing in an asset‚ whether that is a project‚ a business unit or an entire company. It is important to reflect the capital structure used to finance the investment. To create a capital companies usually use a funds providing by creditors and shareholders. Managers use cost of capital as the discount rate in net present value (NPV) project appraisal techniques.1 The weighted-average cost of capital (WACC) represents the overall cost of capital for a company‚ including the costs
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