Mini Cases: Cost of Capital Part A: Cost of Debt Mini Case 1: Cost of perpetual/Irredeemable debt Ashok Leyland issued Rs 100 Lakhs 12% debentures of Rs. 100 each. Calculate the cost of debt in each of the following cases. (Assume corporate tax rate being 40%). Case (a) If debentures are issued at par with no floatation cost. Case (b) If debentures are issued at par with 5% floatation cost. Case (c) If debentures are issued at 10% premium with 5% floatation cost. Case (d) If debentures are issued
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1. Provide some examples in business or daily life in which a controlled process is erroneously adjusted and an out-of-control process is ignored. What implications do these errors have? My example of a controlled process that is erroneously adjusted is the thermostat. My house is two-story. The A/C unit upstairs is set on heat at a temperature of 76 degrees and automatic adjustment. Today’s weather temperature was unusual 80 degrees. So‚ the heat unit didn’t come on. However‚ due to the temperature
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Zuber Case Task 1. Would you be willing to invest the funds in this country without covering your position? Explain. It looks like investing in this country could be very profitable because the yield offered would be 14 percent (compared to only 9 percent in the US)‚ but there are a few possible dangers in making an investment in a market that’s not stable yet. The country’s currency has become market-determined‚ so it’s volatile as it tries to find its equilibrium which means unstable market for
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Convergent Review – Is it Really Better Together? In a dynamic world like ours‚ company mergers and acquisitions are ordinary occurrences. Companies turn to these processes to survive the ever competitive world of business. These are acts that basically consolidate companies as one. These are the core of Stanley Convergent Security Solutions Inc. One merger and multiple acquisitions gave birth to a single company. Do you want to know more? Continue to read our Stanley Convergent Review and decide
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Case Study: LaJolla Software‚ Inc. LaJolla Inc. is a young business information software company based in California outside the Silicon Valley. The company is interested in forming an alliance with a Japanese firm and has for the last several months been negotiating with several firms in Japan to realize their goals of distributing their product in Asia. The owners have finally found a Japanese firm that will create an alliance with them. The firm is now sending a contingent of managers to
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Nordstrom Case Study Presentation 1. 1. CHAPTER 15 CASE STUDY Sam Lampe Jamie Malnati Kat Wilson Aseel Kreishan John Saladino 2. 2. NORDSTROM HISTORY• 1901 | Carl Wallin and John W. Nordstrom started a small shoe store in Seattle‚ WA.• 1929 | John W. Nordstrom and Carl Wallin retired and sold their shares to John’s sons‚ Everett and Elmer.• 1968 | The second generation debated selling the company as Everett neared retirement. They were convinced by the third generation Nordstroms to take the company
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Marine Science – submit this alternate for “Sea Turtle Rehab” (Honors Caretta Caretta Turtle Rehab) Forensic Science – submit this alternate for Unit 5 Lab Questions Sea Turtle Nests Female turtles nest 1-10 times a season (May 1 - Oct 1) Lay between 80-120 eggs The group of eggs is called a Clutch Incubation = ~60 days After hatching‚ it takes 3-7 days to dig to the surface About ________1 in 1000___________________ hatchlings will survive to adulthood Nest temperatures determine the gender
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1. In this situation I would tell the cashier I was given too much money. I typically look at my change before leaving the counter and in this case it would be immediately obvious that I had received too much. When I was a teenager I worked in a cash register environment and I know people can lose their jobs over having a short register. It was an honest mistake made by the cashier and I wouldn’t want anyone to lose their job. If I can prevent that from happening‚ I will gladly speak up and give
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My goal in this paper is to analyze Sunflower Incorporated with respect to organizational size and structure‚ bureaucracy‚ and control and make recommendations for improvement in communications along with recommendations regarding the potential use of information technology for strategic advantage. Sunflower Inc. is a large distribution company that purchases and distributes snack foods and liquor to retail stores throughout the United States and Canada. The organization has one head office and
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Kramer‚ after he terminated Elaine. Kramer had less work experience and education than Elaine‚ but Jerry hired him anyway. It is very easy to see why Elaine feels the way she does in this situation‚ however‚ she cannot read Jerry’s mind. It is very possible that Jerry fired Elaine for a legitimate reason and chose not to share this with her. Elaine may have produced a rather large error in her part that she overlooked and either cost the company a lot of money or reputation. Perhaps Jerry realized
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