FIN3101 Corporate Finance Practice Questions Topic: Capital Budgeting 1. Marsh Motors has to choose one of two new machines. Machine 1 costs $180‚000‚ has a 3 year life and EBIT of $108‚750 per year. Machine 2 costs $360‚000‚ has a life of 6 years and EBIT of $122‚875 per year. Assume straight line depreciation over the life of the machine. Marsh is a levered firm with a debt equity ratio of 0.40. The beta of equity is 1.125 while the beta of debt is 0.25. The market risk premium is 8 percent
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Capital Budgeting Scenario Proposal A: New Factory A company wants to build a new factory for increased capacity. Using the net present value (NPV) method of capital budgeting‚ determine the proposal’s appropriateness and economic viability with the following information: • Building a new factory will increase capacity by 30%. • The current capacity is $10 million of sales with a 5% profit margin. • The factory costs $10 million to build. • The new capacity will meet the company’s needs for
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The Role of Participation in Budgeting Introduction Although participation in budgeting may enforce the managerial performance‚ it has constrains and can cause some problems as well. This article analyses the possible advantages and limitations of the role of participation in budget setting. In the next section‚ the possible merits of budgetary participation are demonstrated. This is followed by a section that explains the equivocation existing in the relationship between budgetary participation
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In this activity‚ you will watch a group of professionals work to solve a design problem in just five days. Answer the following questions as you watch The Deep Dive. A class discussion will take place following the broadcast. 1. “From the buildings in which we live and work‚ to the cars we drive‚ or the knives and forks with which we eat‚ everything we use was designed to create some sort of marriage between _________________ and _________________.” 2. The folks at IDEO state that they
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2012 ANNUAL BUDGET OF BARANGAY ISOK II An Analysis (by: Abraham L. Cuevas) INTRODUCTION Barangay Isok II in the municipality of Boac‚ Marinduque is one of the barangays in the Poblacion area. This review will present an overview of the proposed Barangay Budget of Barangay Isok II for CY 2012. This paper will also tackle details on the budget preparation‚ budget authorization‚ budget review‚ and budget execution and accountability. OVERVIEW OF THE BARANGAY 2012 BUDGET On October 7‚ 2011
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Mary Kavanagh • First years (2 Groups) • Applications of HCF and LCM to Problem Solving 2 Insights into Lesson Study • Introduction: Focus of Lesson • Student Learning : What we learned about students’ understanding based on data collected • Teaching Strategies: What we noticed about our own teaching • Strengths & Weaknesses of adopting the Lesson Study process 3 Introduction Applications of HCF and LCM to Problem Solving Reason for study: Realised we needed to go further than just the skills
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technician) field information technology provide solution to problems or faults in a computer system and the methods used by graduate of information technology of the university of education Winneba‚ Ghana This report shows the analysis of how the both (artisan/graduate) will troubleshoot the computer system‚ the tools to be used and how the solution will be provided PROBLEM STATEMENT The Problems Or Fault That Will Be Used For The Analysis Is: BSOD Fault BSOD FAULT Means Blue
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CHAPTER 9 PROFIT PLANNING AND BUDGETING Questions‚ Exercises‚ Problems‚ and Cases: Answers and Solutions 9.1 See text or glossary at the end of the book. 9.2 A cost center is a responsibility center in which management is responsible only for costs. In a profit center‚ management is responsible for both costs and revenues. 9.3 An investment center is a responsibility center in which management is responsible for managing costs‚ revenues‚ and assets. A profit center is not responsible
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Chapter 7 Budgeting and Cost Estimation Copyright 2009 John Wiley & Sons‚ Inc. Low Bids If you are bidding on a project‚ do you want your bid to be as low as possible and still make a profit? Accept Low Bid If you are accepting bids on a project‚ do you want to accept the lowest bid? Budgeting A plan for allocating scarce resources to the various endeavors of an organization A budget implies constraints Thus‚ it implies that managers will not get everything they
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Surveillance System survey indicating that “more than half of the adult U.S. population drank alcohol in the past 30 days. Approximately‚ 5% of the total population drank heavily‚ while 15% of the population binge drank” (“Alcohol Use”). Alcohol‚ when used in moderation and responsibly‚ can be considered an ordinary and enjoyable facet of everyday life by the majority of people in our society. Everyone is familiar with the various social settings in which alcohol is consumed‚ varying from relaxation
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