(8‚100) Tax cost (2‚730) (3‚075) (4‚590) Net cash flow $6‚020 $5‚175 $10‚710 Discount factor (6%) .943 .890 Present value $6‚020 $4‚880 $9‚532 NPV $20‚432 11. a. Year 0 Year 1 Year 2 Year 3 Year 4 Before-tax cash flow $(500‚000) $52‚500 $47‚500 $35‚500 $530‚500 Tax cost (7‚875) (7‚125) (5‚325) (4‚575) After-tax cash flow 44‚625 40‚375 30‚175 525‚925 Discount factor (7%) .935 .873 .816 .763 Present value $(500‚000) $41‚724 $35‚247 $24‚623 $401‚281 NPV
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that is implied by traditional buy-out and leveraged recapitalizations. Fair market value of the firm: Rm: Prime rate = 9% rf: risk free rate = 7.2% Average Unleveraged beta bu = = .839 Assume that growth rate : g = 2%‚ RPm = 4% ‚ tax rate is 35% Unlevered cost of equity rsu = rf + RPm (bu) = 7.2% + 4%(.839) = 10.56% Operating cash flow using base case projections: 1995 1996 1997 1998 1999 Cash Flow 7‚772 9‚233 9‚807 10‚292 10‚513 Interest Expenses 3‚587 3‚042 2‚324 1‚507 599
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000. Assuming a company tax rate of 30%‚ the firm’s cash flow from operations is: (A) $840‚000 (B) $180‚000 (C) $135‚000 (D) $75‚000 4. Given an effective annual interest rate of 14 per cent‚ the present value of a perpetuity consisting of yearly payments of $25‚000 starting immediately is‚ rounded to the nearest dollar (A) (B) $203‚571 (C) $178‚571 (D) 5. $232‚071 $156‚641 If the present value of a perpetual income stream is increasing‚ the discount
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approach‚ which means that the debt to equity ratio of AirThread will not be the same from 2008 to 2012‚ so APV approach would be more suitable to valuate the cash flows between 2008 and 2012. After 2012‚ AirThread will de-lever to industry norm and thus‚ they will have a target leverage ratio; therefore WACC is best to estimate the terminal value. Finally‚ regarding the valuation of non-operating investments in equity affiliates‚ due to limited data‚ market multiple approach would be better to use
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turn of the nineteenth century‚ American philosopher and psychologist William James delivered a series of lectures on the topic of natural religion at the University of Edinburgh‚ which were later published as a collection under the title of The Varieties of Religious Experience: A Study in Human Nature. Within this collection‚ one encounters a profound discussion of many multi-faceted aspects of religion. With this discussion‚ James is able to ultimately conclude that a collective religious truth does
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WILLIAM JAMES AND LIFE AFTER DEATH A. W. Orr Saybrook University San Francisco‚ CA December 12‚ 2013 2 WILLIAM JAMES AND LIFE AFTER DEATH William James’ views about life after life death can be summed up in two words‚ not proven. Over the course of his career he encountered the question repeatedly. He considered it‚ he pondered it‚ and he explored it. In the end his views did not significantly change. At the same time he found the idea fascinating and was continually intrigued
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“William James and Functionalism” I. Introduction William James (January 11‚ 1842 – August 26‚ 1910) was an American philosopher and psychologist who had trained as a physician. He was the first educator to offer a psychology course in the United States. James wrote influential books on pragmatism‚ psychology‚ educational psychology‚ the psychology of religious experience‚ and mysticism. He was the brother of novelist Henry James and of diarist Alice James. In the
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Cash & Cash Equivalents Introduction: Cash & cash equivalents may constitute a significant proportion of the total assets of an entity. It is the most liquid asset found within the asset category of a company ’s balance sheet. It is an important criterion to evaluate the liquidity and the short term solvency of a business venture. Liquidity and short term solvency means the ability of the business to pay its short term liabilities. Inability to pay-off short term liabilities affects its credibility
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Would William James Agree? It is true that philosophers William James and Friedrich Nietzsche have had a widespread influence on the entire philosophy world. Though their theories on truth and morality are very different‚ there is some solid common ground. This essay plans to summarize the theories of both philosophers and show how they are similar. It will also explain if one has to agree with the views of the other based on their own personal theory and the similarities of both. William James
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Cash and Cash Equivalents Cash This includes money and other negotiable instrument that is payable in money and acceptable by the bank for deposit and immediate credit. Examples are bills and coins‚ checks‚ bank drafts and money orders. To be included or considered as cash‚ it must be unrestricted as to use‚ meaning‚ it must be readily available for use or payment of current obligations‚ thus‚ not subject to contractual or legal restrictions. The following items are included in “cash”:
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