Calculate WACC using book values: The weight of debt is calculated by adding the current portion of long-term debt‚ notes payable and long-term debt‚ and dividing it by the sum of debt and equity. $5.4 + 855.3 + 435.9 = $1‚296.6 $1‚296.6 / (1‚296.6 + 3‚494.5) = .27 = 27% The weight of equity is calculated by dividing the total shareholder equity by the sum of debt and equity. $3‚494.5 / (1‚296.6 + 3‚494.5) = .73 = 73% Cost of Debt To find the cost of debt I subtracted the tax savings from
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its cash flow therefore it is a way to; a) Evaluate the Investment Decision b) Decide on a debt policy c) Appraise the performance of top managers 2) Compute the corporate WACC. Be sure to state all your assumptions to get the various inputs to the WACC. r_e=r_f+ β(EMRP) WACC= r_e (E/V)+ r_d (D/V)(1-t) E=Midland’s Equity Market Value D=Midland’s Net Debt (E/V)= Weight for the cost of equity (D/V)= Weight for the cost of V (E+D)= Midland’s total Market Value
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CLEAVERN SPEARS (COURSE TITLE) PRIVATE SECURITY IN THE US 1/26/2014 Private security in the US is an essential factor in protecting certain individuals as well as intellectual property. Private security officers are accountable for protecting the nation’s top institutions as well as various other important infrastructures of the nation. Private security can be defined and broken down into many different definitions‚ but Asis; the biggest private sector in the US
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summoned a private police force‚ the Pinkerton Detective Agency‚ to protect the non-union workers he planned to hire. The entire town flooded to the mill to meet the Pinkerton’s‚ weapons in hand. For twelve hours‚ a fierce battle raged. Outgunned by the Pinkerton’s Winchester rifles‚ Homestead’s citizens scoured the town for weapons‚ pressing into service everything from ancient muzzle loaders to 20-pound cannon. As workers built barricades on shore‚ the Pinkertons cut rifle ports in the sides of
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PROBLEM BASED ON CHAPTER 15 – WACC AND THE HAMADA FORMULA Bickley Engineering Company has a capital structure of 30% Debt and 70% Equity. Its current Beta is 1.3‚ and its Market Risk Premium is 7.5% Points. The current Risk Free Rate is 3.5%. Bickley’s marginal tax rate is 40%. What is the Unlevered Beta of Bickley? Bickley’s management would like to change its capital structure to 15% Debt and 85% equity by retiring its bonds yielding 8%. The remaining long term debt will be at 7%. The
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He ignored union involvements. He threatened to bring in the Pinkertons‚ who were a detective agency for hire that amounted to a private army of thugs. He was also strictly against organized labor‚ and refused to allow union workers at his mines. Frick’s action led to the Homestead Strike of 1892. The strike took place
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taking down the walls. The deputy sheriffs that Frick had used to guard the factory had failed him so he sent in for the Pinkerton Detective Agency‚ a private army‚ to come to his aid. Coming in on a tugboat by nightfall‚ the army came greeted by hundreds of protesters. No one is sure who fired the first shot but a battle erupted and after fourteen hours of exchanged gunfire the Pinkerton Detective Agency surrendered. I feel that management hiring an army against its own employees is outrageous and completely
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In response to these protests‚ Frick hired the Pinkerton National Detective Agency‚ so that the strike could be ended. The Pinkerton Detective Agency was a large military group that rivalled the military of the United States in size. Conflict ensued between the union members and the Pinkerton agents. The conflict took the lives of nine strikers and seven Pinkerton agents‚ with many more being injured.(Demarest) The United States government often supported
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The Homestead Strike of 1892 By: Industrial Relations Homestead is located on the Monogahela River eight miles from Pittsburgh. In 1892 the town had a population of about 12‚000 people. In 1880 it had a population of about 600 people. The town evolved around the Carnegie mills. With out the steel mill the town would have little existence. The mill property covered 600 acres of the 600 acres 37 of that is covered with varies buildings. The mills facilities were lighted by electricity which
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The Homestead Strike was a very violent‚ but important event to the people of the American Business Industry. The violent act of a desperate businessman‚ in attempt to retain peace‚ killed many men. The infamous story of the Pinkertons changed the ways of American business agreements. The Homestead Strike changed the traditional American business environment by creating new laws and the awareness of the need for peace in business world. The Carnegie Steel Company was a successful factory‚ which
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