1. How would you evaluate the capital budgeting method used historically by AES? What’s good and bad about it? “When AES undertook primarily domestic contract generation projects where the risk of changes to input and output prices was minimal‚ a project finance framework was employed.” Usually‚ project finance framework is used when the project has predictable cash flows‚ which can easily represent operating targets through explicit contract. When cash flows are certainty‚ the company can have
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F523 - SPRING 2013 BOEING CASE 1. What is the appropriate required rate of return against which to evaluate the prospective IRR ’s from the B ANSWER:The appropriate rate of return against which to evaluate the IRR is the risk-free rate‚ plus the market risk 1a. Please use the capital asset pricing model to estimate the cost of equity. At the date of the case‚ the 74 over T-bonds. Which beta‚ risk-free rate‚ and risk premium did you use? Why? Financing Components Debt Equity Market Values Weight
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1) Describe two main differences between classical and empirical probabilities. a. Classical probabilities are based on assumptions; Empirical probabilities are based on observations. b. Classical probabilities do not require an action to take place; Empirical probabilities have to have been “performed”. 2) Gather 16 to 30 coins. Shake and empty bag of coins 10 times and tally up how many head and tails are showing. Number of coins: 20 * Consider the first toss‚ what is the
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expectations throughout those countries. In Hong Kong‚ children’s birthdays had traditionally gone unrecognized‚ but McDonald’s introduced the practice of birthday parties in its restaurants‚ and now such parties have become popular among the public. Case 2: 1.
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Introduction Cooper Industries‚ Inc. is a manufacturer of heavy machinery and equipment. It has acquired some companies in the past as part of their expansion plans. Cooper acquires companies that are leading in their area of business‚ have a large market share and is the leading company in their area of operation. Currently‚ Cooper is focusing on building a hand tool business with a full product line that would use a common sales and distribution system and joint advertising. In this effort‚ Cooper
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An expense is normally incurred by a firm to generate sales‚ e.g. promotional expenses which are selling expenses which are directly related to the generation of sales. Most of the expenses normally form a part of operating expenses and are included in ‘cost of sales’. It may either be raw materials‚ labor‚ etc.‚ or capitalized assets which are either depreciated or amortized over a period of time. These are known as matching costs. The other types of costs are ‘period costs’ which are mostly mentioned
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Mary Llyresa M. Magsino E3A 1. Discuss the conflict of autonomy and accountability in academic research. The conflict of autonomy and accountability in academic research in academic research is that independence and responsibility are two different things. The conflict in the academic research is that the academic’s research impact has a controversy with the European autonomy of universities. The autonomy is challenged to demonstrate the economic impact on the universities from
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L’Oreal Marketing Strategies in Promoting Beauty Care Products in Malaysia The world’s No. 1 beauty company‚ L’Oreal‚ sees opportunities in Malaysia’s multi-ethnicity and thus taking the advantage of this unique feature‚ despite the small population of 28 million. L’Oreal executive vice-president for Asia Pacific‚ Jochen Zaumseil said that Malaysia is an important market for L’Oreal‚ as the multi-ethnicity background in Malaysia offers them opportunity to test its products and hence developing
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MARKETING STRATEGY Ryanair case What is your assessment of Ryanair launch strategy? From my point of view‚ the strategy implemented by Ryanair was perfect because it is focused on capturing those passengers who have the price as the main criterion in choosing the mean of transport. There is a wide difference between the fare of the air companies with the ferry or rail giving rise to another variables‚ as comfort or no time‚ do not influence by the time of the decision-making. However‚ Ryanair
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• If Franchisees buy things from informal sources or the above confinement on wellsprings of supply is unenforceable‚ sovereignties are forced or (if eminences are as of now part of the framework) balanced upward significantly to compensate for lost income at the Franchisor/partner level. • If Franchisees don’t get deals/item buy shares‚ they can lose their regional rights‚ be ended and/or ineligible for reestablishment. • If you are uncomfortable with the working association with a Franchisee
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