If A Company’s Board Of Directors Wants Management To Maximize Shareholder Wealth, Should The
If a company’s board of directors wants management to maximize shareholder wealth, should the CEO’s compensation be set as a fixed dollar amount, or should the compensation depend on how well the firm performs (that is, the company’s performance)? If it is to be based on performance, how should performance be measured? Would it be easier to measure performance by the growth rate in reported profits or the growth rate in the stock’s intrinsic value? Which would be the better performance measure? Why?
How To Calculate The Standard Deviation Of An Investment, With The Difference Probability Of
How to calculate the standard deviation of an investment, with the difference probability of states? (please explain it theoretically)
Year ZAR/GBP 1961-1982 2 1982-1985 1.95 1985 2.99 1986-1988 3.47 1989-1993 4.51 1994
Year ZAR/GBP 1961-1982 2 1982-1985 1.95 1985 2.99 1986-1988 3.47 1989-1993 4.51 1994 5.41 1999 9.07 2001 21.3 2002 13.85 2005 10.2 2008 17.82 2010 12.01 2015 18.27 What is the rate of depreciation from 1961 till 1994? Please explain the formula used and what it is called.
Clean Sweep Services Runs A Professional Office Cleaning Service. Its Clients Are Charged $1200
Clean Sweep Services runs a professional office cleaning service. Its clients are charged $1200 a month for the service and tax invoices are prepared four times a year on 31 January, 30 April, 31 July and 31 October. Quarterly payments are due by the fifteenth of the month following the end of a quarter. The balance in the Cleaning Fees Revenue account was $264 000 on 31 December, the end of the period. Service fees for November and December not yet recorded were $64 000. Required NON-GST version dont consider gst PLEASE show simply calculation process (a) Assuming that reversing entries are not made, record the receipt of a $4600 quarterly payment from a client on 12 February and the receipt of $3400 on 13 February from a new client who had contracted for the service to start on 1 December. b) Assuming that reversing entries are made to facilitate the record-keeping process, prepare the appropriate reversing entry, if any, and the receipt of cash on 12 and 13 February.
1. What Are The Business Cases For Each Of The Two Projects, Match My
1. What are the business cases for each of the two projects, Match My Doll Clothing (MMDC) and Design Your Own Doll (DYOD). Which case is more compelling from a qualitative point of view? Note – bullet points are fine to answer this. You can answer this in your excel spreadsheet – no need to upload a separate word doc. 2. Find the NPV and IRR of both projects in the Excel sheet provided. New Heritage Doll Company: Capital Budgeting Exhibit 1 Selected Operating Projections for Match My Doll Clothing Line Expansion 2010 2011 2012 2013 9010 9011 9012 9013 9014 9015 9016 Revenue 4,500 7,860 8,510 9,082 9,808 10,593 11,440 12,355 13,344 14,411 Revenue Growth 74.7% 8.3% 6.7% 8.0% 8.0% 8.0% 8.0% 8.0% 8.0% Production Costs Fixed Production Expense (excl depreciation) 575 575 589 604 615 625 635 650 660 680 Variable Production Costs 2,035 3,404 4,291 4,669 5,078 5,521 6,000 6,519 7,190 7,685 Depreciation 152 152 152 152 164 178 192 207 224 242 Total Production Costs 0 2,762 4,131 5,032 5,425 5,858 6,324 6,827 7,376 8,074 8,606 Selling, General
Compute The Fair Value Of An American Call Option With Strike K = 110K=110
Compute the fair value of an American call option with strike K = 110K=110 and maturity n = 10n=10 periods where the option is written on a futures contract that expires after 15 periods. The futures contract is on the same underlying security of the previous questions.
On January 1, 1518, Dracky Lou Deposited £17 Into An Account Earning An Annual
On January 1, 1518, Dracky Lou deposited £17 into an account earning an annual interest rate of 3%. Dracky Lou then took a long nap in his coffin, and woke up on January 1, 2018. Dracky Lou now plans to make the following expenditures using money from this account: On January 1, 2018, Dracky wishes to purchase a Blood Bank for £12.5 million. On January 1, 2118, Dracky wishes to purchase and modernize a crypt in Bucharest Romania. He estimates that the cost will be £225 million. Every year for the each of the next 30 years, Dracky Lou wishes to donate £1 million to his favorite author, Stephanie Niyer. The first donation will be on January 1, 2019. On January 16, 2118 Dracky Lou plans to take another snooze. If he next wakes on January 1, 2218, how much money will he have left in his account? Assume a 3% annual interest rate throughout. Please show work including equations used!
2. WACC Analysis: I. What Are The Main Elements In Calculating Cost Of Capital?
2. WACC analysis: i. What are the main elements in calculating cost of capital? cost of equity 1.cost of debt 2. cost of preferred 3. portion of debt in companies capital structure 4. portion of equity fund in companies capital structure 5. portion of preferred in companies capital structure ii. How would an increase in debt affect the cost of capital? cost of capital would decrease with increase in debt. debt financing generally offers the lowest cost of capital due to its tax deductibility iii. How would you identify the optimal cost of capital for an organization? The optimal capital structure for a company is one which offers a balance between the ideal debt-to-equity range and minimizes the firm’s cost of capital. iv. What is meant by Weighted Average Cost of Capital(WACC)? Weighted average cost of capital (WACC) is the average of the minimum after-tax required rate of return which a company must earn for all of its security holders. It is calculated by finding out cost of each component of a company’s capital structure, multiplying it with the relevant proportion of the component to total capital and then summing up the proportionate cost of components WACC = r(E) × w(E) r(D) × (1 – t) × w(D) v. Why is WACC a more appropriate discount rate when doing capital budgeting? – WACC represents the average risk faced by the organization. weighted average cost of capital allows the firm to calculate the exact cost of financing any project. vi. What is the impact on WACC when an organization needs to raise long term capital? Since WACC provides a more appropriate discount rate ,it privides a more appropriate discount rate it provides a more accurate picture of what financial obligation must be met and help determine which long term and short term options make most sense for that organization. vii. What is an Initial Public Offering (IPO)? How does an IPO allow an organization to grow financially? It is the point in which a company sells common stock to the public. Money raised from an IPO goes to the company directly as opposed to the trade of stock that is already being bought and sold. For the public, purchasing stock through an IPO has greater risks than investing in stock. The Company may not be strong enough to maintain a competitive edge in the world of public companies; therefore the stock price may immediately plummet. The purpose of selling stock to the public is to raise capital, which could be used to for mergers and/or acquisition. Depending on what a Company’s long-term objects are, it might consider merging with a company that is already publicly held. The decisions to influence this type of transaction could be that the Company is not strong enough for the public to have an interest in purchasing the stock. The Company may not be able to get the price it wants from the sale of stock through an IPO. Since an IPO is an equity transaction there are no financing considerations for the IPO itself. Other financing considerations for a merger or acquisition would be financing in the form of bank loans or bond issues, which would have to be repaid with interest. Additional investments from the owners, in the case of non-public companies, would also be a consideration, but this would be considered an equity transaction. viii. When is a merger or an acquisition, rather than an IPO, a more appropriate way to grow? Solution: Acquisition reason In merger organization need to share their strategy planning and goal. So there is lack of flexibility in decision making while Acquisition stick on goal, planning have strengthen decision making so it lead to more appropriate to grow than merger. Summary paragraph: i. State your opinion, based on the above information, as to whether the company (TSLA) is financially healthy and whether you would invest in the company (TSLA) based on the analysis above. Be specific in you assessment based upon your analysis.
A Payment Of $10 Is Made On 31st December Of Each Year From 2001
A payment of $10 is made on 31st December of each year from 2001 to 2012. Force of interest is 8% p.a. What is the value of all payments accumulated on 31 December 2013?
1. James Deposits $200 In A Bank Account On The Last Day Of Each
1. James deposits $200 in a bank account on the last day of each month. He increases the deposit by $10 each month. The payments continue for a period of 36 months. What is the present value of these payments on the day of the first payment (to the nearest dollar)? The nominal interest rate is 8% compounded monthly. 2. $1000 accumulates to $1500 in 5 years time and the rate of inflation is 3% p.a. What is the annual effective real rate of return?
A $50 Perpetuity Paid Monthly Has A Present Value Of $7500 On The Date
A $50 perpetuity paid monthly has a present value of $7500 on the date of the first payment. What is the force of interest?
Explain How International Investment Can Lead To An Increase In The Return Per Unit
Explain how international investment can lead to an increase in the return per unit of risk. Use diagrams or formulae to support your answer as appropriate.
1. Consider The Follwing Series Of Payments Which Start At Time T = 0:
1. Consider the follwing series of payments which start at time t = 0: 5, 7, 9, 11… What is the value of this series of payments at time t = 7? Effective annual interest rate is 9% p.a. 2. A $50 perpetuity paid monthly has a present value of $7500 on the date of the first payment. What is the force of interest? I have done these. Please skip my questions.
“The International Capital Asset Pricing Model Is An Appealing Theory But Has Little Practical
“The international capital asset pricing model is an appealing theory but has little practical use.” Critically analyse this statement.
Misty Needs To Have $18,000 In 4 Years To Fulfill Her Goal Of Purchasing
Misty needs to have $18,000 in 4 years to fulfill her goal of purchasing a small sailboat. She is willing to invest a lump sum today and leave the money untouched for 4 years until it grows to $18,000 but she wonders what sort of investment return she will need to earn to reach her goal. Use your calculator or spreadsheet to figure out the approximate annually compounded rate of return needed if she can invest $12,300 today. I need to know the correct formula to solve this. The formula I know includes the rate but no rate is given here because it’s what we’re looking for, therefore I don’t know how to solve it.
How Can I Lower My Expences When I Know My Income Is Vere Good
how can i lower my expences when i know my income is vere good but my expences always ALMOST reaches my income but i know i cant do anything as i know i need this liabilities. what can i do or what strategy can i make in order to lower my expences!!! ?????
As Of July 2019, Using Only Websites Ending In .gov, Report The Current GDP,
As of July 2019, Using only websites ending in .gov, report the current GDP, the current Federal deficit, the current Federal debt, and the bottom line of the current (last) budget approved by Congress (surplus or shortage)
Which Financial Ratio(s) Do You Think The Most Important One(s) For Credit Holders?
Which financial ratio(s) do you think the most important one(s) for credit holders?
Pretty Lady Cosmetic Products Has An Average Production Process Time Of 40 Days. Finished
Pretty Lady Cosmetic Products has an average production process time of 40 days. Finished goods are kept on hand for an average of 15 days before they are sold. Accounts receivable are outstanding an average of 35 days, and the firm receives 40 days of credit on its purchases from suppliers. Estimate the average length of the firm’s short-term operating cycle. How often would the cycle turn over in a year?
1st Drop Down Of The Last Question [increase Or Decrease] 2nd Drop Down For
1st drop down of the last question [increase or decrease] 2nd drop down for the last question [increase or decrease]
In Detail Explain How They Effectively Analyze The Financial Health Of A Company Of
in detail explain how they effectively analyze the financial health of a Company of your choice see below what companies I would like to speak about basically transit companies or public transportation is fine it only has to be 50 words or more My company is small transport companies like paratransit and/or public transportation can you please help me and put it in your own words thank you
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