American Finance Association Efficient Capital Markets: A Review of Theory and Empirical Work Author(s): Eugene F. Fama Source: The Journal of Finance‚ Vol. 25‚ No. 2‚ Papers and Proceedings of the Twenty-Eighth Annual Meeting of the American Finance Association New York‚ N.Y. December‚ 28-30‚ 1969 (May‚ 1970)‚ pp. 383-417 Published by: Wiley for the American Finance Association Stable URL: http://www.jstor.org/stable/2325486 . Accessed: 02/08/2014 05:59 Your use of the JSTOR archive indicates your
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Capital Budgeting Assignment #2 Breana N. Rainge 23. Bauer Industries is an automobile manufacturer. Management is currently evaluating a proposal to build a plan that will manufacture lightweight trucks. Bauer plans to use a cost of capital of 12% to evaluate this project. Based on extensive research‚ it has prepared the following incremental free cash flow projections (in millions of dollars): | Year 0 | Year 1-9 | Year 10 | Revenues | | 100.0 | 100.0 | -Manufacturing expenses (other
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global economy with its more than 3 billion consumer market and thriving national economies is well acknowledged. Equally well acknowledged is the quest of many global companies to gain a substantial market presence in these economies in order to grow and be competitive in the new business landscape‚ as can be evidenced by the ever growing foreign direct investment into both these countries and the number of global companies entering these markets. Not so apparent is the gradual emergence of local
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entry into new markets” Disney does not have to produce t-shirts‚ USB sticks and even waffles with Mickey Mouse’s happy face on it. Instead‚ it can license the right to use its famous character to different companies around the globe and enjoy the hefty royalties‚ which in 2010 totaled 28.6 billion dollars (Rorie‚ 2011). Does it then mean that licensing as a mode of entry into foreign markets is the best option available? Not necessarily so. Given a multitude of foreign market entry methods‚ all
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the end consumer. Zara has a large variety of tangible resources due to its international expansion and vertical integration. Zara has 507 stores around the world with a total selling area of 488‚400 m² and 1‚050 million of Inditex ’s capital invested into them. It also owns a 130‚000 m² warehouse in close vicinity to its headquarters in Arteixo‚ Spain. In order to accommodate the company ’s initiatives for backward vertical integration‚ Zara purchased 20 factories that were highly automated
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What’s your real cost of capital? By James J. McNulty‚ Tony D. Yeh‚ William s. Schulze‚ and Michael H. Lubatkin Harvard Business Review‚ October 2002 Issue of the article: valuing investment projects Number of pages: 12 Daniel Miravet Campos Part 1. Executive summary This article is fundamentally based on the exposition of a new method to calculate the cost of capital for a company (MCPM)‚ to meet the inefficiencies of the current one (CAPM). In valuing any investment project or
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Capital One Financial Corporation 1. How is Capital One’s use of IT different from other mass customization strategies? Capital One uses IT through its information-based strategy (IBS) to “record‚ organize‚ and analyze data on the characteristics and behaviors of their customers‚” as stated by CEO Richard Fairbank. Their philosophy was to exploit information by constructing scientific models that could be used to both assess the creditworthiness of potential cardholders through
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I will be the first to admit that there are people in this world that has done some pretty terrible things. Maybe to themselves or to other people! Even though those people may have no remorse over the things they have done us as human beings have to be the ones to say when enough is enough. The history of the death penalty is a long and brutal one. From the stoning and crucifixion killings of the B.C. era to today’s methods of the electric chair and lethal injection‚ governments of one kind or
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Understanding corporate value: managing and reporting intellectual capital Intellectual capital Contents 1 Introduction 4 2 Definitions of intellectual capital 6 2.1 2.2 Classifications of intellectual capital Why is intellectual capital so difficult to measure? 3 IC measurement 8 Generic models 3.1 Balanced scorecard 3.2 Performance prism 3.3 Knowledge assets map approach Individual company models 3.4 The Skandia navigator 3.5 Ericsson’s cockpit communicator
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SHARE CAPITAL Share capital is the Funds raised by issuing shares in return for cash or other considerations. The amount of share capital a company has can change over time because each time a business sells new shares to the public in exchange for cash‚ the amount of share capital will increase. Share capital can be composed of both common and preferred shares. Each share carrying a vote in the management of the business‚ managerial control may be limited. The authorized capital of a company is
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