Reference no: EM13859847
Capital budgeting -
You are determining whether your company should undertake a new project and have calculated the NPV of the project using the WACC method when the CFO, a former accountant, notices that you did not use the interest payments in calculating the cash flows of the project. What should you tell him? If he insists that you include the interest payments in calculating the cash flows, what method can you use. Explain
Beta and Leverage
What are the two types of risk that are measured by a levered beta?
If you know the unlevered beta, how can you derive the levered beta?
Each of you, using a real company, use this method to calculate the levered beta for the company you select.
Leasing in the E-commerce World
The article, "Equipment Leasing: New Life on Lease," (seehttps://www.cfo.com/printable/article.cfm/2989186) discusses changes in the leasing market associated with the development of E-commerce. Examples show how companies can use operating leases to improve performance and how the use of the Internet can reduce the costs of securing such financing. After reading the article, answer the following questions:
1. What were the advantages sited by Horizon Foods for securing operating leases on the Internet
2. Describe how Smith International uses the web to secure operating lease fin
Sales-Leasebacks -
This issue has three parts.
Many firms are using leasing techniques to improve performance. Leasing offers opportunities to unlock funds tied up in assets and also offers the potential to generate additional cash flows through efficient tax management. The technique of sale-leaseback was used for real estate, but the technique can also be used for other productive assets. Potential benefits of using this technique is described in an article entitled https://www.srr.com/article/sale-leaseback-transactions-financing-alternative-middle-market-companies. Also read https://www.ccim.com/cire-magazine/articles/synthetic-leases-benefit-or-burden After reviewing this article, answer the following questions:
1. Leasing transactions-particularly sales-leasebacks-are often labeled as balance sheet mining transactions. What does that mean?
2. What is the potential advantage of having a lease categorized as an operating lease instead of a capital lease?
3. What is a synthetic lease?
Why Lease?
What are some of the reasons for leasing?
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Create a program that will simulate the child''s number guess
: Create a program that will simulate the child's number guessing game with two players
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Describe the company in terms of industry and size
: Describe the company in terms of industry, size, number of employees, and history. Analyze in detail the current HR practice, policy, process, or procedure that you believe should be changed.
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What does the bond currently sell for
: A particular bond has 8 years to maturity. It has a face value of $1,000. It has a YTM of 7% and the coupons are paid semiannually at a 10% annual rate. What does the bond currently sell for?
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What is the price of each bond
: a. What is the price of each bond? b. What is the value of the portfolio? c. What is the duration and modified duration of each bond? d. What is the modified duration of the portfolio using the weighted average method?
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Capital budgeting-beta and leverage
: You are determining whether your company should undertake a new project and have calculated the NPV of the project using the WACC method when the CFO, a former accountant, notices that you did not use the interest payments in calculating the cash ..
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Characteristics of distributed file system
: characteristics of Distributed File System
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What are its ac-avc and mc functions
: Gail works in a flower shop, where she produces 10 floral arrangements per hour. She is paid $10 per hour for the first eight hours she works and $15 an hour for each additional hour she works. What is the firm’s cost function? What are its AC, AVC, ..
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Advise thomas on the status of his contract of employment
: It is clear that his condition will now prevent him from ever working as a tailor again. Advise Thomas on the status of his contract of employment.
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Estimate that the production function
: The BlackBerry production function is Q = 2.83L1.52K0.82. Epple et al. (2010) estimate that the production function for U.S. housing is q = 1.38L0.144M0.856, where L is land and M is an aggregate of all other mobile, non-land factors, which we call m..
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