What’s your real cost of capital? By James J. McNulty‚ Tony D. Yeh‚ William s. Schulze‚ and Michael H. Lubatkin Harvard Business Review‚ October 2002 Issue of the article: valuing investment projects Number of pages: 12 Daniel Miravet Campos Part 1. Executive summary This article is fundamentally based on the exposition of a new method to calculate the cost of capital for a company (MCPM)‚ to meet the inefficiencies of the current one (CAPM). In valuing any investment project or
Premium Stock market Investment Stock
Procter & Gamble and Disposable Diapers Introduction Post‚ Lawrence & Weber (2002‚ p.15) argue that business do not operate in a social or political vacuum. In fact most companies operate in a swirl of social‚ economic‚ technological and political changes that produces both opportunities. Coronado (2007) states that business is in fact part of society. Coronado further explains that business is an institution of society that affects and is affected by governments and other social actors. Therefore
Premium Procter & Gamble
The Cost of Capital for Goff Computer‚ Inc. Rahul Parikh BUS650: Managerial Finance (MAH1209A) Dr Charles Smith March 18‚ 2012. The Cost of Capital for Goff Computer‚ Inc.: 1. Most publicly traded corporations are required to submit 10Q (quarterly) and 10K (annual) reports to the SEC detailing their financial operations over the previous quarter or year‚ respectively. These corporate fillings are available on the SEC Web site at www.sec.gov. Go to the SEC Web site‚ follow the “Search for
Premium Investment Net present value Finance
Cost of Capital Definition: cost of capital is the rate of return that a company must earn on its project investments to maintain its market value and attract funds. The cost of capital to a company is the minimum rate of return that is must earn on its investments in order to satisfy the various categories of investors‚ who have made investments in the form of shares ‚ debentures and loans. The cost of capital in operational terms refers to the discount rate that would be used in determining the
Premium Finance Net present value Weighted average cost of capital
Collaboration and Innovation at Procter & Gamble CASE STUDY 1. What is Procter & Gamble’s business strategy? What is the relationship of collaboration and innovation to that business strategy? i. Proctor and Gamble’s business strategy focuses on three main areas. This is to maintain the popular the popularity of its existing brands through advertising and marketing; the extension of its brand to related products by developing new products and the creation of new brands from scratch. To achieve
Premium Collaborative software Instant messaging
DATA ANALYSIS Population Size = 9 Samples from Unilever = 5 Sample from Procter & Gamble = 4 SAMPLE ANALYSIS QUESTION NO. AGREE AGREE DISAGREE DISAGREE NEUTRAL NEUTRAL UNILEVER P & G UNILEVER P & G UNILEVER P & G 1 5 5 0 0 0 0 2 5 2 0 0 0 2 3 5 5 0 0 0 0 4 5 5 0 0 0 0 5 5 5 0 0 0 0 6 5 1 0 1 0 2 7 5 5 0 0 0 0 8 5 2 0 0 0 2 9 5 5 0 0 0 0 10 5 1 0 1 0 2 QUES. NO. 15 16 17 18 19 HIGH HIGH LOW LOW MODERATE MODERATE N/A N/A UNILEVER P & G UNILEVER P & G UNILEVER P & G UNILEVER P & G 5 3 0 0 0
Premium Statistics Standard deviation Normal distribution
Cost of Capital Firms need to make capital investment i.e.‚ purchasing fixed assets such as factories‚ machineries‚ equipment‚ etc. After deciding what capital investments to make‚ they need to decide on the financing – sources of capital. The sources: Long-Term Debt‚ Common Stock‚ Preferred Stock and Retained Earnings. Then they need to find the cost of obtaining each source of financing today (not historical). Cost of Capital - The rate of return that a firm must earn on its investment
Premium Finance Investment Rate of return
Completion of Chapter 1 Proctor and Gamble – Focus on repeat customers * Practical satisfaction of meeting customer requirements. * Review of modern quality – Skilled craftsman on 1 to 1 basis. Blacksmith.. one on one negotiation face to face relations with customers. * Industrial Revolution – Henry Ford – Mass production. Quality once a post production review. Reactive approach. * Bell System Statistical – Shurart. * WWII Post War l 40’sand 50’s- Beming and Juran
Premium Malcolm Baldrige National Quality Award Quality assurance Quality management
Intermediate Accounting Project Assignment #1 AIA2-1 (Financial Reporting Issues: The Procter & Gamble Company) a) Proctor and Gamble’s revenue recognition policies state that the customer recognizes revenue upon either date of shipment or date of receipt; e.g. when the product or receipt has switched hands. They also record revenue net of sales‚ trade promotion spending‚ and other taxes on behalf of governmental authorities. All of these transactions are generally recorded at time of
Premium Generally Accepted Accounting Principles Income statement Balance sheet
Head & shoulder a brand owned by Proctor & Gamble was established in the 1950’s and has strived to create a formula for a shampoo that can get rid of dandruff (Headandshoulders 2011). Head & Shoulders differentiate from other brands because it does not only just help eliminate dandruff it also helps maintain the basic needs of people’s hair such as fighting of dryness‚ relieving of irritation‚ control of oil and maintenance of silky hair. Head & Shoulders was recommended by 82% of its members of
Premium Hair care Marketing Salicylic acid