the basics of capital budgeting

... CALLED THE PROJECT COST OF CAPITAL IN CAPITAL BUDGETING FIND (A) THE PV OF THE EXPECTED CASH FLOWS AND/OR (B) THE ASSET’S RATE OF RETURN IF THE PV OF THE INFLOWS IS GREATER THAN THE PV OF THE OUTFLOWS ... TO THE VALUE OF THE FIRM D WOULD THE NPVs CHANGE IF THE COST OF CAPITAL CHANGED? ANSWER: THE NPV OF A PROJECT IS DEPENDENT ON THE COST OF CAPITAL USED THUS, IF THE COST OF CAPITAL CHANGED, THE ... when the company wants to know if the expected value of the cash flows is greater than the cost of the project, and whether or not the expected rate of return on the project exceeds the cost of the...

Ngày tải lên: 01/07/2014, 21:28

... flows of one are unaffected by the acceptance of the other mutually exclusive, if the cash flows of one can be adversely impacted by the acceptance of the other 10 - What is the payback period? The ... cost of capital Capital rationing 10 - 51 Increasing Marginal Cost of Capital  Externally raised capital can have large flotation costs, which increase the cost of capital  Investors often ... If profiles don’t cross, one project dominates the other 10 - 26 Two Reasons NPV Profiles Cross Size (scale) differences Smaller project frees up funds at t = for investment The higher the opportunity...

Ngày tải lên: 06/04/2015, 19:41

... (and thereby generating the expectation of a strengthening of the rand) or by raising interest rates Under either of these options, it would probably be both difficult and undesirable for the ... (NOFP), which is a measure of its short-term foreign currency exposure, has been reduced by nearly two-thirds since the currency crisis of 1998 Nevertheless, the NOFP and other indicators of ... or the recipient of the inflow may decide to reinvest the funds overseas, exchange control regulations permitting -7- However, the findings also indicate that all other components of the capital...

Ngày tải lên: 24/10/2012, 09:11

... choice of capital structure The ones reviewed in this section will be the trade-off theory, the agency cost theory and the pecking-order theory 2.2.1 THE TRADE-OFF THEORY The trade-off theory ... theories of capital structures? 1.2 RESEARCH OBJECTIVES In short, the purposes of the research are: (1) An overview of the theory of capital structure in order to see the importance of an optimal capital ... than the book value of equity this year due to falling prices because of the collapse of the stock market in Vietnam The following is an analysis of the components of the capital structure of Vietnam...

Ngày tải lên: 09/09/2013, 23:46

... other tier of the company, the management team is directly responsible for the day-to-day operations (and profitability) of the company * Chief Executive Officer (CEO) – As the top manager, the ... to maintain the smooth operation of the firm, with the assistance of senior management Often, the CEO will also be designated as the company's president and therefore also be one of the inside ... was accepted The means of results in table told that the more proportion number of women on boardroom, the higher profit of bank The higher proportion number of women on the board, the larger bank...

Ngày tải lên: 09/09/2013, 23:50

... Understand the cost of capital and the specific sources of capital associated with the cost of capital • Determine the cost of debt and preference share capital • Calculate cost of ordinary share capital, ... next dollar of total new financing  Is an increasing function of the level of total new financing  The ‘break point’ is the level of total new financing at which the cost of one of the financing ... wi = Proportion of long term debt in the capital structure wp = Proportion of preference share capital in the capital structure ws = Proportion of ordinary share equity in the capital structure...

Ngày tải lên: 16/12/2013, 14:57

... THE BASICS OF SOCIAL MARKETING The Basics of Social Marketing is one of several social marketing resources available for public health professionals from Turning Point, and the Turning ... and how it affects the desired change? ® Taken together, will the overall mix of interventions reach enough of the target audience often enough to have the desired impact? ® Is the overall mix feasible ... was the fear that boiling would “boil in the dirt” and affect the taste A taste test showed that not to be the case ® 15 Collaboration with the Office of Minority Affairs helped reach many of the...

Ngày tải lên: 18/02/2014, 02:20

... per day? Could they make one per day by writing their name on it? They could There are loads of other ways of both saving the company money and respecting the planet Brainstorm them 91 Be fast ... At The Basics of Business 100: 85 Don’t rush recruitment; you’ll live with the consequences for years Spend the right amount of time and money making the process as brilliant as you can Rather ... days for example? Or points of margin? Or employee satisfaction? Nicholasbate.typepad.com © Nicholas Bate 2010 Brilliant At The Basics of Business 100: 74 Get out of the office and find out what’s...

Ngày tải lên: 06/03/2014, 19:20

... shows that the cost of capital of the firm depends on four factors: the risk free rate, the aggregate risk tolerance of the market, the expected cash flow of the firm, and the covariance of the firm’s ... b ) Clearly the cost of capital for the firm will be somewhere in between the cost of capital j for the riskless component and the cost of capital for the risky component But if the firm’s expected ... increases the variance and covariances, which increases the cost of capital The equilibrium is then the net of these two effects In our example, the overall effect decreases the cost of capital. 22...

Ngày tải lên: 06/03/2014, 21:20

... nowhere The overall stock market is the same How many people over the years have bought, then sold such stocks as Wal-Mart and Microsoft, then kicked themselves, because they spent the cash they ... need, so they reward their investors well In the United States, there are two kinds of companies which are REQUIRED to pay at least 90% of their cash to their investors One of those types of companies ... for a big profit once they retire And if they retire during a bear market like the current one, there's no guarantee they'll get nearly the money they hoped for years ago And once they sell, at...

Ngày tải lên: 09/03/2014, 02:20

... The Basics of Economics Recent titles in Basics of the Social Sciences The Basics of Western Philosophy Eugene Kelly THE BASICS OF ECONOMICS David E O’Connor Basics of the Social Sciences ... from the nation in which they reside Examples include the Mbuti Pygmies of Central Africa, the Kavango tribes of Namibia, the Nigritos of the Philippines, and the Saharias of central India The ... and never talk to them of our own necessities but of their advantages.”10 Not surprisingly, much of The Wealth of Nations is de- 17 The Basics of Economics voted to the benefits of economic freedom...

Ngày tải lên: 17/03/2014, 11:20

... methods they should be mindful of their own safety and the safety of others, including parties for whom they have a professional responsibility To the fullest extent of the law, neither the Publisher ... single topic) Neither of these is a bad thing; in fact, quite the opposite, it is the level of detail and the clarity of the authors’ explanation that make them so great But at the same time, a ... methodologies use the term “Information Gathering,” whereas others call the same process “Reconnaissance.” For the purpose of this book, we will focus on the activities of the phase rather than the name...

Ngày tải lên: 23/03/2014, 03:20

... visit: www.kesdee.com of of of of of of of of of of of of of of of of of of of of of of of of of of of of of of of of of of of of of of of of of of of of of of of of of of 28 14 08 07 15 07 63 ... Library Library Library Library Library Library Library Library Library Library of of of of of of of of of of of of of of 03 02 03 02 03 02 03 04 02 03 07 10 04 03 Courses Courses Courses Courses ... Financial Institutions Others The themes of this product are: Understand the Accounting Framework Understand the Accounting Process Understand the process of Finalization Understand the Financial Statement...

Ngày tải lên: 29/03/2014, 14:20

... familiar with this type of pollution We have done a good job of identifying, controlling or eliminating this type of pollution via the provisions of the Clean Water Act The Basics of Water Pollution ... now and into the future The Basics of Water Pollution The pollutants in polluted runoff Nutrients Pathogens Sediment Toxic chemicals Debris Thermal stress For purposes of describing the pollutants ... death The presence of excessive numbers of harmful pathogens also affects the use of water for direct contact recreation (swimming and fishing) The Basics of Water Pollution 11 Impacts of pathogens...

Ngày tải lên: 29/03/2014, 14:20

... Program is part of the Division of Library and Information Services of the Department of State The Secretary of State is the official holder of the Great Seal of the State of Florida and official recordkeeper ... involving the records has been started before the expiration of the retention period and the disposition of the records, the records must be retained until completion of the action and resolution of ... nonetheless constitute public records inasmuch as they supply the final evidence of knowledge obtained in connection with the transaction of official business FLORIDA DEPARTMENT OF STATE BASICS OF...

Ngày tải lên: 31/03/2014, 13:20

... split, that is, the ratio of flow of a product stream to the sum of the flows of the feed streams, and the mole or mass fraction of a component in a product stream The composition of the nth stream ... computed The block permits the assignment of the flow rates or componential split fraction of each component in each of the n − product streams, based on the combined feeds The composition of the nth ... selecting the Help button on the main Aspen Plus display The philosophy of the book is based on the idea that once a chemical engineer becomes thoroughly facile in the use of the software and...

Ngày tải lên: 01/04/2014, 10:57

... Cryptography 19 The Basics of Cryptography Then PGP uses the digest and the private key to create the “signature.” PGP transmits the signature and the plaintext together Upon receipt of the message, the ... cases, the algorithm is to offset the alphabet and the key is the number of characters to offset it For example, if we encode the word “SECRET” using Caesar’s key value of 3, we offset the alphabet ... certificate’s authenticity verifies the issuing CA’s digital signature, and hence, the integrity of the contents of the certificate (most importantly, the public key and the identity of the certificate...

Ngày tải lên: 29/04/2014, 14:55

... Location of Irrigated Areas of Californ ia, 1920 (Cou rtesy of Tin a Esp in oza) xxvi REFERENCE MAPS 100 Miles Ap p roxim ate Location of Irrigated Areas of Californ ia, 1930 (Cou rtesy of Tin ... Tow n s, an d Cities of Californ ia (Cou rtesy of Tin a Esp in oza) xxiv REFERENCE MAPS 100 Miles Ap p roxim ate Location of Irrigated Areas of Californ ia, 1900 (Cou rtesy of Tin a Esp in oza) ... rop riation s of lan d an d w ater; th e rise of h igh -valu e sp ecialty crop s an d th e econ om y of lan d su bd ivision ; th e p roblem of m arkets; th e u n even d evelop m en t of th e irrigation...

Ngày tải lên: 28/06/2014, 10:20

... ,the Great the potential When we use the term “larger” ,we are referring to the the height and the width of the price pattern The height measures the volatility of the pattern The width is the ... to the width of the channel Therefore, the trader has to simply measure the width of the channel and then project that amount from the point at which either trendline is broken 81 The larger the ... of the neckline (the info@akforex.com closing price is outside the neckline ) .The failure of the price to break through the neckline puts on hold or negates the validity of the formation 96 The...

Ngày tải lên: 28/06/2014, 12:20

... uses the rate of return concepts covered in previous chapters, along with the concept of the weighted average cost of capital (WACC), to develop a corporate cost of capital for use in capital budgeting ... describing the logic of the WACC, and why it should be used in capital budgeting We next explain how to estimate the cost of each component of capital, and how to put the components together to ... USED THE REASON IS THAT THE COST OF CAPITAL IS USED IN CAPITAL BUDGETING, AND CAPITAL BUDGETING CASH FLOWS ARE GENERALLY ASSUMED TO OCCUR AT YEAR-END THEREFORE, USING NOMINAL RATES MAKES THE TREATMENT...

Ngày tải lên: 01/07/2014, 21:28