CHAPTER 9 THE COST OF CAPITAL (Difficulty: E = Easy‚ M = Medium‚ and T = Tough) Multiple Choice: Conceptual Easy: Capital components Answer: c Diff: E [i]. Which of the following is not considered a capital component for the purpose of calculating the weighted average cost of capital (WACC) as it applies to capital budgeting? a. Long-term debt. b. Common stock. c. Accounts payable and accruals. d. Preferred stock. Capital components Answer: d
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1. A CORPORATE FINANCE EXECUTIVE WANTS TO INVEST IN A NEW PROJECT THAT WILL EVENTUALLY INCREASE THE CORPORATION’S PROFITS. THE FINANCE EXECUTIVE PROPOSES THIS IDEA TO HIS DIRECTOR WHO ASKS THAT HE PUT TOGETHER A PROPOSAL AND PRESENT IT AT THE NEXT BOARD MEETING. 2. A PARENT OPENS UP A 529 COLLEGE SAVINGS PLAN FOR THEIR NEWBORN CHILD TO SAVE FOR THE CHILD’S EDUCATION 3) IN SELECTING THREE DIFFERENT INVESTMENT OPTIONS‚ A BROKER OFFERS AN INVESTOR THREE MUTUAL FUND OPTIONS. THE FIRST IS
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Case 9: Horniman Horticulture 1. Assess the strengths and weaknesses of the company Horniman Horticulture. Strengths * Constantly growing firm with increasing revenue (15.5% in 2005)‚ net profit‚ total assets and high returns on equity (5.1% in 2005) * Large product offerings‚ with a recent increase of 40%. Majority of offerings are in high demand * Management (in regards to Bob Brown) has good ties with employees and customers * Tax expense hasn’t drastically
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personnel needs. The manager ensures that personnel needs are met through ongoing analysis of performance objectives‚ job requirements‚ and available personnel‚ coupled with knowledge of employment laws. 1 INTERNATIONAL JOURNAL OF MANAGEMENT‚ BUSINESS‚ AND ADMINISTRATION
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Business Finance- Final Assessment | Naturally Fresh Plc | A report to the directors of Naturally Fresh Plc evaluating the financial position of a new project. The proposal concerns converting a number of farms in southern Europe into camp sites with effect from the 2012 holiday season. | | | Section 1: The required rate of return on equity of naturally Fresh Plc at 31st December 2012 The rate of return on equity represents the percentage return a company needs to achieve to be worth
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Corp Finance Notes Chapter 1: * The purpose of business? * Creative act * Process to create products that benefit people… a good good? * Improving the living situations * The purpose of Corp finance skills? * Key concepts and skills * Understand the purpose of business form a Christian point of view: * Purpose of business: a disciplined set of processes- supported by facilities‚ equipment and supplies‚ for harnessing‚ unleashing and organizing our
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9 Sinusoidal Steady State Analysis Assessment Problems AP 9.1 [a] V = 170/−40◦ V [b] 10 sin(1000t + 20◦ ) = 10 cos(1000t − 70◦ ) . ·. I = 10/−70◦ A [c] I = 5/36.87◦ + 10/−53.13◦ = 4 + j3 + 6 − j8 = 10 − j5 = 11.18/−26.57◦ A [d] sin(20‚000πt + 30◦ ) = cos(20‚000πt − 60◦ ) Thus‚ V = 300/45◦ − 100/−60◦ = 212.13 + j212.13 − (50 − j86.60) = 162.13 + j298.73 = 339.90/61.51◦ mV AP 9.2 [a] v = 18.6 cos(ωt − 54◦ ) V [b] I = 20/45◦ − 50/ − 30◦ = 14.14 + j14.14 − 43.3 + j25 = −29.16 + j39.14 = 48.81/126
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WRITTEN RESPONSE #4 MGNT 4670 1) What are the two types of pressures that firms competing in the global marketplace typically face? Pressures for cost reductions and Pressures to be locally responsive Under what types of conditions do these pressures arise? Pressures for cost reduction: Intense in industries of standardized‚ commodity type product that serve universal needs Meaningful differentiation on non-price factors is difficult Major competitors are based in low-cost locations
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09 Behavioral Finance and Technical Analysis Multiple Choice Questions 1. Testing many different trading rules until you find one that would have worked in the past is called _______. A. data mining B. perceived patterning C. pattern searching D. behavioral analysis 2. Models of financial markets that emphasize psychological factors affecting investor behavior are called _______. A. data mining B. fundamental analysis C. charting D. behavioral finance 3. The
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Macroeconomics‚ 5e (Hubbard) EC 212 – Chapter Nine Homework Assignment_SOLUTIONS Chapter 9 Unemployment and Inflation 1) Due to slowing growth in China and other developing countries‚ Caterpillar ________ the number of persons it employed in 2013 and this ________ the total number of persons unemployed in the economy. A) decreased; increased B) decreased; decreased C) increased; decreased D) increased; increased Answer: A Diff: 1 Page Ref: 629/263 Topic: The Unemployment Rate Learning Outcome:
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