WEIGHTED AVERAGE COST OF CAPITAL 1. Calculate the current cost of capital of Secure and Safe on a weighted average basis Capital structure Type Details $50‚000‚000 bonds 5.5% coupon $20‚000‚000 preferred stock Par value $50 per share Dividend $2.75 per share p.a $25‚000‚000 book value of common stock Cost of capital is 12% Firm’s marginal tax rate is 30%. Cost of debt (issuance of bonds) According to the book Finance for Managers (2015)‚ we get the real cost of debt by taking out the tax liability
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20K in year one‚ increasing by 15% each year 3) Depreciation Expense = 5K each year 4) Tax Rate = 25% 5) Discount Rate = 10% b. Corporation B: 1) Revenues = 150K in year one‚ increasing by 8% each year 2) Expenses = 60K in year one‚ increasing by 10% each year 3) Depreciation Expense = 10K each year 4) Tax Rate = 25% 5) Discount Rate = 11% You must compute and analyze items (a)
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Prolix Initiative - Care workers case study Introduction Kevin Pudney and Malcolm Rose have worked in the care sector for over 20 years. Their most recent job is part of a European project aimed at improving training and development in business and ’speeding the time to competency’. More information on the research project is available on the Prolix website (www.prolixproject.org). The project was conducted in partnership with Social Care Institute of Excellence. The social care sector in UK was
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Case study on PHG Bhupindra Malla International American University HUMAN RESOURCE MANAGEMENT Professor: Luis Lopez Kings College (MBA 2nd trimester) INTRODUCTION: People’s home gadgets (PHG) is a company which provides electronics and appliances of very low cost to very high end. For employee’s long term well-being and success‚ PHG philosophy for managing customer service representatives. PHG typically hire a people through employee referrals rather than newspaper and give a training to customer
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Theory Accounting Case 8.1 Simon Romario (023121023) Purwanto Gozali (02312132) Endah Puspitasari (023121065) 1. The article states that the US standard setter FASB requires companies to record a provision in relation to environmental cost of retiring assets (to reserve environmental liabilities) if its fair value could be reasonably estimated. How do you think companies would go about estimating such a provision? Estimation (or estimating) is the process of finding an estimate
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Kristine Boncales Mgt Info Systems BUS353350 Morphew November 4‚ 2013 Individual Case Study Three 1. This case implies that the frequent acquisition and disposition of tourism brands poses problems for information systems. I believe these problems include the information systems being a type of pre-internet‚ e-commerce‚ web 2.0 and enterprise 2.0 which are inter-organizational information systems. THL uses five components of an information which include SharePoint‚ Microsoft Office SharpPoint
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Case Study 20.1: The Big Mac Index Question 1 McEachern explains the purchasing power parity theory as the notion that the exchange rate between two countries will conform as time goes by to maintain the cost between the countries in order to keep internationally traded goods as a bundle. (McEachern‚ 2012) Since the Big Mac is not traded on the international market this is not a good choice of a test of this particular theory. The cost of a Big Mac locally in many different countries compared to
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decisions‚ management ordinarily considers both financial and non-financial information. 5. True. 6. True. 7. False. Costs that are the same are not relevant. 8. False. When using incremental analysis‚ either costs or revenues or both will change under alternative course of action. E23-2 Wyco Company manufactures toasters. For the first 8 months of 2011‚ the company reported the following operating results while operating at 75% of plant capacity. | Sales (400‚000 units) | $4‚000‚000 |
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Executive Summary: The following is an analysis of the Travel Centers of America (TA) and recommended best investment strategies as Trifthorn Capital pertains to additional investment opportunities. Based on HPT-TA deal structures and where we believe our investors to be headed we recommend the following actions: • Holding New-TA stocks you received in the spinoff • Buying shares in New-TA in addition to the stocks received from spinoff In this memo‚ we would analyze the HPT share holders’
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to check patients’ blood flow; however he was discovered on admission labs to have acute on chronic renal failure‚ patient states he is unaware of kidney problems before. He states he is able to pass his urine without difficulty‚ no obstructive symptoms‚ no history of kidney stones‚ no urinary tract infections‚ no hematosis‚ no dysuria‚ and no diabetes mellitus. Patient states he has a history of hypertension‚ but it has been very mild. He has had trouble with vascular disease to both legs. Patients’
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