illustrates that the management of a firm is adhering to the goal of financial management? A. decrease in the per unit production costs B. increase in the number of shares outstanding C. decrease in the net working capital D. increase in the market value per share 3. Which of the following can help align the behaviour of managers with the goals of shareholders? A. management compensation B. managerial labour markets C. an independent board of directors D. all of the above 4. Your mother is trying
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NET PRESENT‚ VALUE‚ MERGERS AND ACQUISTIONS TRIDENT UNIVERSITY INTERNATIONAL AVIE MARIE JOHNSTONE STRATEGIC CORPORATE FINANCE FIN501 MODULE 5 CASE ASSIGNMENT PROFESSOR WALTER WITHAM
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00‚000 by making a down payment of Rs.1‚50‚000 and remainder in equal instalments of Rs. 1‚50‚000 for six years. What is the rate of interest to the firm? 2. a.Explain the mechanism of calculating the present value of cash flows..What is annuity due? How can you calculate the present and future values of an annuity due? Illustrate b.”The increase in the risk-premium of all stocks‚irrespective of their beta is the same when risk aversion increases” Comment with practical examples 3. a.How leverage
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Chapter 6 | Capacity Planning | | TRUE/FALSE 1. Capacity is the maximum rate of output of a process. Answer: True Reference: Introduction Difficulty: Easy Keywords: capacity‚ maximum output rate 2. Capacity decisions should be made separate from strategic decisions. Answer: False Reference: Introduction Difficulty: Moderate Keywords: capacity decision‚ strategic decisions 3. Capacity can be expressed by output or input measures
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is willing to accept before starting a project. It is used in project evaluation to evaluate the amount of return on the project. A common method for evaluating the hurdle rate is apply the discounted cash flow method to the project‚ like net present value. 2. How does Teletech Corporation currently use the hurdle rate? They used it based on the firm’s rating‚ beta‚ cost of capital‚ and they calculated WACC of 9.3% for the whole corporation. 3. What are Rick Phillips’s arguments for the
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1. Basic present value calculations Calculate the present value of the following cash flows‚ rounding to the nearest dollar: a. A single cash inflow of $12‚000 in five years‚ discounted at a 12% rate of return. b. An annual receipt of $16‚000 over the next 12 years‚ discounted at a 14% rate of return. c. A single receipt of $15‚000 at the end of Year 1 followed by a single receipt of $10‚000 at the end of Year 3. The company has a 10% rate of return. d. An annual receipt of $8‚000 for three
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_______________ 1. What is the net present value of a project with the following cash flows if the discount rate is 14 percent? [pic] A. -$3‚140.43 B. -$929.90 C. $247.181 D. $1‚027.67 E. $1‚127.08 2. Timothy is considering an investment of $10‚000. This investment is supposedly going to provide him with cash inflows of $2‚500 in the first year and $6‚000 a year for the following 2 years. At a discount rate of zero percent this investment has a net present value (NPV) of _____‚ but at the
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a day we have dedicated nationally to bring about awareness of human values into the society. First of all I like to acknowledge and humbly appreciate the guidance I have received from the Chancellor of the Sathya Sai University in India on the importance of human values in education. I am sure most of you are aware of the global and national problems we are facing at present. I would put deterioration of human values on top of the ladder. Human’s impact on earth in various ways placing
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that inflow are reinvested at 80 percent of the internal rate of return This is a correct answer It is the difference in the reinvestment assumptions that can be significant in determining when to use the present value or internal rate of return methods. Under the net present value method‚ cash flows are assumed to be reinvested at the firm ’s weighted average cost of capital Points earned on this question: 1 Question 2 (Worth 1 points) A project has initial costs of $3‚000 and subsequent
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VALUE-BASED EDUCATION: A NEED OF TODAY In the present era of education assisted by ultramodern technology‚ we are inclined more towards knowledge and ranks in the examination than application of learning in our day-to-day life. Theodore Roosevelt warns‚ “To educate a man in mind and not in morals is to educate a menace to society.” It is a lamentable fact that in the prevalent scenario of education‚ the majority of the teachers as well as the taught have turned into grades-oriented and marks-oriented
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