Chapter 14 The Cost of Capital 14-1. Templeton’s investment of $400M will be financed with $300M in debt and $100M in equity. Thus after the purchase‚ Templeton’s balance sheet (market value and book value‚ at t = 0) will look like this: ASSETS $400‚000‚000 DEBT $300‚000‚000 $400‚000‚000 EQUITY $100‚000‚000 $400‚000‚000 ) = 75% in debt financing‚ and ( $100‚000‚000 ) = 25% in equity Thus Templeton is using ( $300‚000‚000 $400‚000‚000 $400‚000‚000 financing. Its debt and equity weights are therefore
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List of Suppliers • • • • • • • • Asian Coating Phils. Inc. Benesco Construction Supply Inc. Biz4me Enterprises. Bosny Marketing. Capomastro Inc. Century Chemical Corporation. Concord Opto Electronic Tech Phils. Hardware Alpha Trading. • • • • • • • Hunter Marketing and Dev. Corp. Hute Construction and Supplies. Neltex Development Inc. R.C Charm Marketing. Saint J Sales Enterprises. Transpo sales Inc. Uniprime Beaver. Free Powerpoint Templates Page 1 Major
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Overview of Relevant Formulas Corporate Finance (B40.2302) _________________________________________________________________________________________ 1. Present value of $1 to be received after t years at discount rate r: 2. Present value of annuity of $1 per year for t years at discount rate r: $1 (1 + r )t ⎡1 − (1 + r ) − t ⎤ ⎢ ⎥ × $1 r ⎣ ⎦ 1 ⎡ (1 + g )t ⎤ 3. Present value of growing annuity of $1 at rate g per year at discount rate r: ⎢1 − ⎥ × $1 r − g ⎣ (1 + r )t ⎦ $1 r 4. Present value
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ASSIGNMENT BRIEF 4 Unit title Unit 22 Research Methodology for health and social care Qualification BTEC L3 EXTENDED DIPLOMA IN HEALTH & SOCIAL CARE – QCF Lev 3 15 Credits Interim deadline Deadline date Assessor Assignment title & No. Brief 4 Planning a research project. The Purpose of this Assignment is to: Undertake and review research a topic relevant to in health and social care. Scenario: You are a researcher employed by a charity The Joseph Rowntree
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dividend discount model (DDM)as an alternative method to calculate cost of equity: Re = (D1/P0) + g Re = Cost of equity D1 = Expected dividends P0 = Current share price g = Expected dividend growth rate Calculate cost of equity using the dividend Discount Model (DDM). Compare your estimate using the dividend discount model to your estimate from the CAPM. Which estimate makes more sense to you? Re=D1/P0 + g =D0(1 + g)/P0 + g = 0.48*(1 + 5.5%)/42.09 + 5.5% = 6.7% We
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highest price the network wishes to charge per commercial. At P1 only Q1 is demanded so neither the large companies (D1) nor the small companies (D2) are willing to meet the network’s quota (Q). At P2 the larger companies are willing to purchase a certain amount of air time but the smaller companies are still unwilling. As super bowl night gets closer the demand curve shifts from D1 to D2. Small companies pay P3 (discounted price) and fill the rest of the network’s quota. For smaller companies the
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Task 1: (P1‚ P2‚ P3‚ M1 and D1) Using the businesses that you have looked at in Assignment 1. You have been asked to write a report entitled ‘Business aims and objectives in different sectors’ to help the departments understand‚ you must include the following; Define aims and objectives. (What is an aim and what is an objective?) (P1) Describe the purpose for a business in setting aims and objectives. (Why do businesses set objectives? Think about the people in the business and why having
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SOURCE CODE #include #include #include #include #include main() { int score=0; char ch‚temp‚login[100]‚*pass; textcolor(0); textbackground(15); clrscr(); printf("\n\n\n\n\n\n\n\n\n\n\t\tWELCOME TO ’YUUVVA’ONLINE EXAMINATION\n\n\t\tPRESS ENTER TO CONTINUE\n\n\t\t"); temp=getchar(); clrscr(); printf("\n\n\n\n\n\n\n\n\n\t\t\tENTER YOUR LOGIN\n\n\t\t\t"); scanf("%s"‚login); printf("\n\n\n\n\t\t\tENTER PASSWORD\n\n\t\t\t"); pass=getpass(" "); while(strcmp(login‚pass)
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P1 describe the organisation of the eukaryotic cell in terms of the functions of the organelles Y/N P2 describe the four different tissue types Y/N M1 use diagrams or micrographs to compare and contrast the four tissue types Y/N D1 explain the relationship between cells‚ tissues‚ organs and organ systems in the organisation of the human body Y/N Student Declaration I declare that this assignment is all my own work. All sources of information and material I have used
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where T is the firm’s marginal tax rate. The after-tax cost of debt is used because interest is deductible for tax purposes rs = the component cost of common equity 5. Dividend growth model P0 = D1 / (r-g) P0 = current share price D1 = next period dividend amount r = required rate of return g = dividend growth rate 6. Right price where n = number of shares held to obtain a right
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