Financial Management Agenda 1. What is the WACC and why is it important to estimate a firm’s cost of capital? Do you agree with Joanna Cohen’s WACC calculation? Why or why not? 2. If you do not agree with Cohen’s analysis‚ calculate your own WACC for Nike and justify your assumptions. 3. Calculate the costs of equity using CAPM‚ the dividend discount model‚ and the earnings capitalization ratio. What are the advantages and disadvantages of each method? 4. What should Kimi Ford recommend regarding
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"The Notorious Jumping Frog of Calaveras County" is one of the most famous tall tales written by an amazing author of the west‚ Mark Twain. His popularity has mainly arisen from his "Huckleberry Finn" stories‚ but the "The Notorious Jumping Frog of Calaveras County" was one of his first stories and the one that brought him into notice to the public. When he was writing for newspapers‚ he was also traveling a great deal‚ for example to California. On the ship he made acquaintance of Bret Hart and
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In order to capitalize on the expanding Indian domestic wine market projected to grow 25-30 percent per year and continue Sula Vineyard’s current growth trajectory‚ Sula Vineyard should consider improving its operational cash flows by efficient management of working capital which will help in the generation of additional profits. Equity funding through internal sources of capital such as retained earnings will reduce the risk of financing through long and short term loans where there could be high
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Ceja Vineyards’ Decision to Directly Market to the Hispanic Community Analysis Ceja Vineyards’ Decision to Directly Market to the Hispanic Community Analysis The Case Study‚ “Ceja Vineyards: Marketing to the Hispanic Wine Consumer?” by Armand Gilinksy Jr.‚ Linda I. Nowak‚ Cristina Santini‚ and Ricardo Villarreal deSilva (2010) outlines a critical decision a small‚ family owned winery in California is facing. The winery‚ Ceja Vineyards‚ is located in the Carneros region and is equally owned by four
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of the first fruits that have been birthed out of the Vineyard Movement was their worship songs. In the 1990s the Vineyard church forever shaped modern contemporary Christian music. As reported in Christian Today: “The songs on the ’Come Now is the Time to Worship’ (1998) and ’Hungry’ (1999) albums‚ particularly their title songs‚ are some of the most well-known of the following decade (3)” It’s through this time of birthing songs the Vineyard became known as a church with great emotional response
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Appendices8 Exhibit 1 - Distribution of wine sales by price class8 Exhibit 2 - Wine drinking habits by category and employment8 Exhibit 3 - Age distribution of wine drinkers by category9 Exhibit 4 - Wine Sales by category9 Executive Summary Virtual Vineyards started in January 1995 and within 10 months was averaging 1500 visitors a day and enjoying a revenue growth of 20% per month. They have successfully segmented the wine market and identified an upper income group of computer literate professionals
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analysis-Ceja Vineyards Okechukwu Maduka. Ceja Vineyard‚ a California based producer and marketer of premium wine has seen a decent amount of growth in their business over the last three years. However the owners of Ceja vineyards‚ led by CEO Amelia are trying to decide whether to primarily target the Hispanic market which will cause them to completely change their marketing efforts or leave it up to the distributors and retailers to make that decision. Problems For the Ceja vineyard team to be able
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Marriot Case Marriot use the Weighted Average Cost of Capital to estimate the cost of capital for the corporation as a whole and for each division‚ and the hurdle rate is updated annually.(WACC = (1-Tc) * (D/A) * R[D] + (E/A) * R[E]) Marriot’s Tax Bracket = 175.9/398.9 = 44% Division’s asset weight to the corporation: Lodging = 2777.4/4582.7 = 0.59 Contract = 1237.7/4582.7 = 0.28 Restaurant = 567.6/4582.7 = 0.13 Risk free rate is 30 years T-Bond = 8.95% (Lodging use long-term debt)
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Martha’s Vineyard is a small island five miles off the southeastern shore of Massachusetts settled in the mid to late 17th century. For nearly 300 years‚ from the early eighteenth century to the mid twentieth century‚ it was home to a remarkably high percentage of deaf Americans who developed their own sign language‚ Martha’s Vineyard Sign Language. This isolated island allowed sign language to flourish beyond the deaf community‚ dissolving barriers between deaf and hearing prevalent in the rest
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0.28 0.48 0.42 Target D/D+S Target D/S Levered Beta 74% 2.85 1.62 Costs of Equity: Rf Lodging MRP 8.95% 7.43% Beta Requity 1.62 21.02% Costs of Debt: Rf Lodging 8.95% Spread Tax rate Rdebt(1-T) 1.10% 0.44 0.0563 WACCs: Lodging Target D/D+S Rdebt(1-T) S/D+S Requity WACC 74% 0.0563 26% 21.02% 9.63% Page 1 Sales Weighted Levered Beta 1.56
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