WACC- Weighted average cost of capital, annual percentage cost of financing a project of average risk. The WACC is not a reflection of all projects and divisions only for specific projects. Factors that affect WACC- Market conditions, firm’s capital structure, firm’s investment policy. Riskier policies= Higher WACC Ways companies can raise common equity- Issue new shares of common stock, reinvest earning that are not paid out as dividends. CAPM- Rs= Rrf+B(Rm-Rrf); Rrf+B(RPm)

DCF- Rs= D1/Po+G
Project risk= Stand alone risk, Corporate risk, and Market risk. Steps in capital budgeting- Estimate cash flows, assess risk of cash flows, determine required return, evaluate cash flows. NPV= CFo + (CF1/(1+r)^1) + (CF2/(1+r)^2) +….

IRR= internal rate of return on a project. MIRR= The % return on a project if the cash flows are reinvested at the cost of capital. Mutually exclusive= if one project is taken then the other must be rejected. Normal CF= initial cost of project followed by series of positive CF. Nonnormal CF= CFs of project switch back and forth from positive to negative. Incremental CF- Sunk costs are irrelevant, Opportunity costs are relevant Cannibalization- If a new product line were to decrease the sales of the firms other products. (Externality) Always adjust for inflation when estimating cash flows. Risk in Capital Budgeting means an uncertainty in the projects future returns or CFs. Stand alone Risk- The projects risk if it were its firms only asset, ignores firm and shareholder diversification. Corporate risk- reflects projects effect on stability of firms CFs. Considers firms other assets, Market risk- Reflects projects effect on a well diversified stock portfolio. Measured by projects market beta. Scenario analysis- considers several possible outcomes, usually worst case, most likely case, and best case Sensitivity analysis- Shows how changes in single cariable such as unit sales affect NPV or IRR Sensitivity and scenario only measure stand...

...Kelly Estabrook
Week 3 Check Point
Total Tax Calculation Program
Analysis:
Process:
1. input salary amount
2. subtract minimum amount in range from salary amount to find excess
3. multiply excess by required percentage for that range
4. add excess amount to base tax
5. display total tax
6. prompt to continue or exit program
Input:
Salrange (float: 0-14999.99)
Response (float: X or Y)
Output:
Totaltax (float)
My Requirements Analysis:
1....

...key parts of hydraulic oil press, it plays a feed in the hydraulic oil press, press, the feeding and squeezing properties of the hydraulic oil press plays a decisive influence.palm oil processing plant
In the design of the screw axis calculation, calculation of screw axis compression ratio is an important content.Hydraulic oil press compression ratio is also called the theory of compression ratio or free volume ratio, namely the screw axis of the adjacent two...

...Many nurses are weak with drug calculations of all sorts. This article will help to review the major concepts related to drug calculations, help walk you through a few exercises, and provide a few exercises you can perform on your own to check your skills. There are many reference books available to review basic math skills, if you find that you have difficulty with even the basic conversion exercises.
Common Conversions:
1 Liter = 1000 Milliliters
1 Gram =...

...Formula for Grade Average Calculation
There are 3 grade averages: TGA, CGA and GGA.
TGA (Term Grade Average) is the combined grade average covering all courses taken in the term and
the session immediately following.
CGA (Cumulative Grade Average) is computed based on all the courses taken by the student which
are expected at the time of calculation to be applied towards the degree requirements in the current
program.
TGA & CGA =
Sum of (Course Credits x Course...

...Connection Development & Evaluation Centre
Prepared by: Alief Taufiqurrahman
Test Engineer
Dogleg Calculation Using strain DAQ
1 Purpose
To compare dogleg value between strain DAQ and theoretical results, during combine loading axial and bending. 2 Problem Statement Dogleg values between strain DAQ reading and theoretical results is not showing a good agreement during combine loading (i.e. Tension and Bending). The strain DAQ could not show the actual dogleg values,...

...5-1 Earned Value Calculation
1.
PV-BCWS=$3607.14
EV-BCWP=$3593.34 (.98 x 3666.67) CPI x AC
AC-ACWP=$3666.67 (3593.34/.98) EV/CPI
2.
SV= -13.8 (3593.34 – 3607.14) EV – PV
CV=73.33 (3593.34 – 3666.67) EV – AC
SPI=1.0 (3593.34/3607.14) EV/PV
CPI=.98 (3593.34/3666.67) EV/AC
3.
According to these calculations, the schedule variance is running late and the cost variance did not run over. The SPI is 1.0 which means that it is running on schedule. The...

...CAPITAL BUDGETING
Cost of 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...

...buybacks and strong dividends. About 43.8% of the total capital of the company comes from debt and the remaining comes from equity. The cost of the different components of its capital structure are – debt: 2.92% (after-tax cost), and equity: 9.49%. The WACC is 6.61%, based on the capital structure outlined. The effective tax rate is 35.4%. AT&T has had dividend growth for the last 25 years. The dividend growth this year was 2.5% and the last year was 12.7%. Dividends declared...