However both the companies are performing better than the industry average. IBM does also take lesser number of days to convert cash on hand compared to Accenture and industry average. But‚ Accenture is taking more days than industry average on converting into cash. For the company’s credit rating we only consider the quantitative factors as it is difficult to get the in depth information on the qualitative factors. We consider the average of three years to get the credits ratings of the company. According
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problem faced by the protagonist is pressure from the General Manager of Green Port and also Marine Corp Sdn Bhd where they want to have better performance so they can get higher bonuses. GM Green Port‚ Anita Osman requested to amortise the dregging cost because Hafiz miscalculated them while GM
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010 5. Gateway Corp. has an inventory turnover ratio of 5.6. What is the firm’s days’s sales in inventory? 65.2 days 6. Your firm has an equity multiplier of 2.47. What is its debt-to-equity ratio? 1.47 7. Which of the following is not a method of “benchmarking”? Utilize the DuPont system to analyze a firm’s performance. 8. Jack Robbins is saving for a new car. He needs to have $ 21‚000 for the car in three years. How much will he have to invest today in an account paying 8 percent annually
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Cost Control and Cost Reduction A business enterprise must survive‚ grow‚ and prosper. Cost Control and Cost Reduction are activities necessary for ensuring that these objectives are fulfilled. With the liberalization of the Indian Economy and Globalization‚ there is now a cut throat competition from various concerns of the world. As a result there is now a race to secure a place for survival. This has increased the importance of cost control and Cost Reduction. Cost Control “Cost control
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Brazil 12 2.4 Estimation of the Growth Rates for Chile 13 3 Calculating the Cost of Capital 13 3.1 The Godfrey and Espinosa (1996) Model 14 3.1.1 Determining the Risk Free Rate 15 3.1.2 Determining βadj 15 3.1.3 Determining the Market Risk Premium 17 3.1.4 Determining the Credit Spread 17 3.1.5 Calculating the Cost of Capital 18 3.1.6 Criticisms of the Godfrey and Espinosa (1996) Model 19 4 Determining the Cost of Debt 20 5 Calculating WACC 20 6 Calculating the Present Value of Paginas
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will be discussed as follows 1) importance of energy cost; 2) project’s cash flows; 3) cost of capital; 4) choose an engine 5) evaluation 6) accept or reject. We should accept the project because of the positive NPV and high IRR. We will gain $532 million in wealth which is a big money on the scale like this. The company has a bond rating of AA that makes the risk relatively low. So we should definitely say yes. Issues Importance of Energy Cost Road King Trucks‚ Inc. is a truck manufacturing company
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flows at the 8% before-tax cost of debt. This is incorrect. Since the company has debt‚ preferred stock and common stock in its capital structure the weighted average cost of capital must be calculated and used to discount the projects’ cash flows. The weight of each component of the target capital structure (based on market values of outstanding securities) should be calculated and used along with their respective component costs to calculate the weighted average cost of capital. Next‚ the Present
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has an up-front cost (t = 0) of $120‚000‚ and it is expected to produce cash inflows of $80‚000 per year at the end of each of the next two years. Two years from now‚ the project can be repeated at a higher up-front cost of $125‚000‚ but the cash inflows will remain the same. • Project B has an up-front cost of $100‚000‚ and it is expected to produce cash inflows of $41‚000 per year at the end of each of the next four years. Project B cannot be repeated. Both projects have a cost of capital of 10
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company is having sufficient supply of raw materials from the suppliers with ample plants‚ latest technological machines that is equipped with sufficient latest devices as well as sufficiently served by railroad sidings. The company is deemed as a low cost manufacturer that portrays strange manufacturing expertise and a dangerous competitor. Weakness The
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FBE 421 Marriott Corporation ------------------------------------------------- Introduction Founded in 1927‚ Marriott Corporation has become one of the leading food service companies in the United States. As of 1987‚ Marriott recorded a profit of $233 million on sales of $6.5 billion and retained a high sales growth rate of 24%. Marriott runs on three major lines of business lodging‚ contract services‚ and restaurants. Lodging division which includes 361 hotels generated 41% of 1987 sales
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