Ace Repair: Q1: A. List: WACC= (%of debt) (after-tax cost of debt) + (% of preferred stock)(Cost of preferred stock) + (% of common equity) (Cost of common equity) =WdRd * (1-T) + WpsRps + WceRs Wd – the weights used for debt‚ Wps – the weights used for preferred equity‚ Wce – the weights used for common equity‚ rd – before-tax cost of debt‚ rps – cost of preferred stock‚ rs – cost of common equity‚ T – marginal tax rate B. Book weight of debt=long-term debt/ total capital=30
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Project managers must take cost estimates seriously if they want to complete software projects within budget constraints. After developing a good resource requirements list‚ project managers and their software development teams must develop several estimates of the costs for these resources. There are several different tools and techniques available for accomplishing good cost estimation. Software development project managers should prepare several types of cost estimates for most projects. Three
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about writing. All of steps I took to construct my emails and letters fell back on a process called ACE. In the textbook it states that ACE is a process that you can apply in any situation. Every letter stands for something different. The A stands for analyzing‚ the C stands for composing‚ and the E stands for evaluating. I found it much easier to complete well-written work when I followed the ACE process. Professionalism In our textbook‚ Business Communications: Polishing Your Professional
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Working Paper #6 REFLECTIONS ON ESTIMATING - THE EFFECTS OF PROJECT COMPLEXITY AND THE USE OF BIM ON THE ESTIMATING PROCESS H. van Meerveld‚ T. Hartmann‚ A.M. Adriaanse and C. Vermeij COPYRIGHT © 2009 VISICO Center‚ University of Twente visico@utwente.nl Reflections on estimating The effects of project complexity and the use o f BIM on the estimating process Bachelor thesis September‚ 2009 Research period: May-August‚ 2009 Author: H. (Hendrik) van Meerveld Bachelor student
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Cost of debt When individuals use the cost of debt‚ they should know the measurement of the interest rate‚ or the yield paid to the bondholders. When analyzing the cost of debt‚ people should know that it ’s an effective rate that businesses are willing to pay on the current debt that they have accrued. The cost of debt is a measurement of the before or after tax returns. Considering the case that individuals can deduct the interest‚ makes the tax after cost more popular than the before tax. A business
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than the cost of capital. The cost of capital is the rate of return that capital could be expected to earn in an alternative investment of equivalent risk. If a project is of similar risk to a company’s average business activities it is reasonable to use the company’s average cost of capital as a basis for the evaluation. A company’s securities typically include both debt and equity‚ one must therefore calculate both the cost of debt and the cost of equity to determine a company’s cost of capital
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Coursework – Cost Value Reconciliation Cost Value Reconciliation (CVR) seeks to improve cost control by collating and analysing established totals for costs and value to illustrate the margins profitability of on a project. CVR achieves this by requiring the provision of statutory accounts in addition to the Standard Statement of Accounting Practice number 9 (SSAP9) and secondly provision of all information which have direct implications on the management operations on all levels of the company
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Cost of Debt and Cost of Equity: Cost of Debt is the interest rate and the Cost of Equity is the expected rate of return demanded by investors in the firm’s common stock. The issue at hand is finding the correct costs of debt and equity in order to find an accurate calculation of WACC. Cohen used the 20-year yield on U.S. Treasuries as the risk free rate‚ which we found to be the correct figure given that Nike Inc. debt was valued over 25 years. Because there is no other given yield that is comparable
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Best Practices in Estimating the Cost of Capital: Survey and Synthesis Robert F. Bruner‚ Kenneth M. Eades‚ Robert S. Harris‚ and Robert C. Higgins This paper pn ^ents ihns‚ Wn Itujjlini; finunaal advtsi-i’s. lUic -M-ven‚ best selling texlho(>k.\ and trade hooks. The re.sulls show close aligninvn! ainuu-^:‚ all lh< M S‚ y’i’jps an ihc use of common theoreliva! frameworks and on many aspects of estimation. We Jin a ’’an.>( •arunhtn. however‚ for the joint choices oflhe nsk-free rate. heia.
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ESTIMATING PROJECT TIMES AND COSTS Estimating is the process of forecasting or approximating the time and cost of completing project deliverables. Cost‚ time‚ and budget estimates are the support for control. Project status reports depend on reliable estimates as the major input for measuring variances and taking corrective action. Inaccurate estimates lead to false expectations and consumer dissatisfaction. There are reasons why estimating time and cost are important. Below are the following:
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