Mini Cases: Cost of Capital Part A: Cost of Debt Mini Case 1: Cost of perpetual/Irredeemable debt Ashok Leyland issued Rs 100 Lakhs 12% debentures of Rs. 100 each. Calculate the cost of debt in each of the following cases. (Assume corporate tax rate being 40%). Case (a) If debentures are issued at par with no floatation cost. Case (b) If debentures are issued at par with 5% floatation cost. Case (c) If debentures are issued at 10% premium with 5% floatation cost. Case (d) If debentures are issued
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financial troubles. In 2001‚ Tony Fernandes reinvented the airline to model Southwestern’s no-frills/low cost design and with only three B737 aircrafts was able to quickly create one of the most profitable airlines in the world. Economies of Scale – Economies of scale exist wherever proportionate increased in the amounts of inputs employed in a production process result in lower unit costs. (Grant‚ p 232) * Technical Input-Output relationships – “AirAsia operates a single type of aircraft‚
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would not need to be implemented saving time‚ money‚ staff stress and treatment delays. Sickness absences have financial and health implications to other phlebotomists and the department. The department has a total of 19 laptop packages. The financial cost to replace all the equipment would run into thousands of pounds which we do not have the budget
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Case 9 Aussie Pooch Mobile 1. How did Christine Taylor succeed in evolving the local dog-washing service she developed as a teenager into an international franchise business? Christine turned her childhood job into an international franchise by having a few strengths to set her apart from others‚ one she had a brand and concept that had a few competitors at the time. Also she was able to understand what the customer wanted because of her early exposure to customer service skills. Plus she was
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Case Study 2: Financial Analysis and Forecasting 1. Strengths: - Profitability Ratios: Constant growth from 2002-05‚ particularly year 2004 and 2005 with impressive growth in revenue with12.5% and 15.5% respectively‚ much higher than the benchmark just -1.8%. Gross‚ operating and net profit margin were all performing better than the benchmarks. - Management: Co-owner Bob Brown has been brought up to value a strong work ethic‚ which he has obtained through his father since at
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Is Terrorism Ever Justified? “Terrorism has no justification‚ no matter what pretext terrorist use for their deeds.” Says Mohamed El Aziz Ben Achour‚ a Tunisian Culture and Preservation of Heritage Minister. (UN News Centre.) Many people view terrorism the same way as Ben Achour‚ especially in America. But there are also many of those‚ such as Alan Dershowitz‚ who counter with questions like‚ “Is ‘terrorist’ just a negative version of ‘freedom righter’?” and “How are civilian deaths in terrorism
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Is violence ever justified? The debate about the use of violence has been on going for the last decade. Violence‚ the act of causing physical harm to another person willingly‚ has often been categorized as being an uncivilized‚ unjustified act. It is mostly known‚ and commonsensical knowledge that attacking or inflicting harm upon another person is “wrong”. Most of us frown upon people who resort to such violent acts‚ and they are punishable by law. However‚ as we progress into the 21st century
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Republic of the Philippines University of Southeastern Philippines COLLEGE OF GOVERNANCE AND BUSINESS Department of Business Administration Bo. Obrero‚ Davao City CASE ANALYSIS 4 Cost Economics To Reduce Costs‚ Firms Often Look Far Afield In order to increase productivity and cut costs to better compete‚ firms often seek creative insights in industries far afield from their own. Of course‚ in a time of increased global competition‚ firms routinely scrutinize competitors’ practices
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depicted as heroes‚ fighting for their own freedoms. However‚ in this modern age the horrors of war come to light‚ what happens on the battlefield is nothing to be triumphant about. Although war has never been a favorable option‚ it can be justified. A war is justified if
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Strategic Cost Management ACCT90009 Seminar 1 Seminar 1 Subject Administration Introduction to SCM oduc o o SC Administration • Subject Coordinator Dr. David Huelsbeck Email: david.huelsbeck@unimelb.edu.au Room: 08.028‚ The Spot Phone: +61 3 9035 6256 Consultation Hours: Monday 4:15pm – 6:15pm • Seminars: Tuesday: 2.15 pm – 5.15 pm‚ FBE ‐ Theatre 211 (Theatre 2) Thursday: 6.15 pm – 9.15 pm‚ Alan Gilbert ‐ Theatre 2 Teaching Format and Resources • Seminar Format 3 hour seminar
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