This is an analysis on Apple's Financial condition in 2013 where there's an excess cash and recommendation on how to do financial decision based on the condition.
A marketing Case Study of Natureview Farm, an organic yogurt manufacturer. This analysis was performed by E. Santhosh Kumar, IIT Madras, during an internship with Prof. Sameer Mathur, IIM Lucknow.
Linear technology case analysis dividend payout policyHimanshu Gulia
it is a presentation on case analysis of the case dividend payout policy of linear technology and about its decision whether it should pay more dividend or keep it constant
The opportunity to explore how a company uses the Capital Asset Pricing Model (CAPM) to compute the cost of capital for each of its divisions. The use of Weighted Average Cost of Capital (WACC) formula and the mechanics of applying it are stressed.
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This is an analysis on Apple's Financial condition in 2013 where there's an excess cash and recommendation on how to do financial decision based on the condition.
A marketing Case Study of Natureview Farm, an organic yogurt manufacturer. This analysis was performed by E. Santhosh Kumar, IIT Madras, during an internship with Prof. Sameer Mathur, IIM Lucknow.
Linear technology case analysis dividend payout policyHimanshu Gulia
it is a presentation on case analysis of the case dividend payout policy of linear technology and about its decision whether it should pay more dividend or keep it constant
The opportunity to explore how a company uses the Capital Asset Pricing Model (CAPM) to compute the cost of capital for each of its divisions. The use of Weighted Average Cost of Capital (WACC) formula and the mechanics of applying it are stressed.
STR 581 Capstone Final Examination, Part 2 - STR 581 Capstone Final Examinati...Transweb E Tutors
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1. The matching principle requires (Points 2) That exp.docxjackiewalcutt
1. The matching principle requires: (Points : 2)
That expenses be ignored if their effect on the financial statements are less important than revenues to the financial statement user
The use of the direct write-off method for bad debts
The use of the allowance method of accounting for bad debts
That bad debts be disclosed in the financial statements
That bad debts not be written off
Question 2. 2. Many companies use accelerated depreciation in computing taxable income because: (Points : 2)
It is required by the tax rules
It is required by financial reporting rules
It postpones tax payments until later years and the company can use the resources now to earn additional income before payment is due
Using it causes a company to use higher income in the early years of the asset's useful life
The results are identical to straight-line depreciation
Question 3. 3. A contingent liability: (Points : 2)
Is always of a specific amount
Is a potential obligation that depends on a future event arising out of a past transaction or event
Is an obligation not requiring future payment
Is an obligation arising from the purchase of goods or services on credit
Is an obligation arising from a future event
Question 4. 4. Advance ticket sales totaling $6,000,000 cash would be recognized as follows: (Points : 2)
Debit Sales, credit Unearned Revenue
Debit Unearned Revenue, credit Sales
Debit Cash, credit Unearned Revenue
Debit Unearned Revenue, credit Cash
Question 5. 5. Revenue expenditures: (Points : 2)
Are additional costs of plant assets that do not materially increase the asset's life or its productive capabilities
Are known as balance sheet expenditures
Extend the asset's useful life
Substantially benefit future periods
Are debited to asset accounts
Question 6. 6. A company purchased a tract of land for its natural resources at a cost of $1,500,000. It expects to mine 2,000,000 tons of ore from this land. The salvage value of the land is expected to be $250,000. The depletion expense per ton of ore is: (Points : 2)
$0.75
$0.625
$0.875
$6.00
$8.00
Question 7. 7. Obligations due to be paid within one year or within the company's operating cycle, whichever is longer, are: (Points : 2)
Current assets
Current liabilities
Earned revenues
Operating cycle liabilities
Bills
Question 8. 8. The interest accrued on $3,600 at 7% for 60 days is: (Points : 2)
$36
$42
$252
$180
$420
Question 9. 9. A company had a fixed interest expense of $6,000, its income before interest expense and any income taxes was $18,000 and its net income was $8,400. The company's times interest earned ratio is equals to (Points : 2)
0.33
0.71
1.40
3.00
12,000
Question 10. ...
Our team conducted research and analysis to calculate the intrinsic enterprise value of Nike, Inc. This was done using a variety of methods, including: dividend discount model, discounted cash flow model, industry comparables, and basic economic research.
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UNIVERSITY OF LA VERNEECBU 500D – BUSINESS FINANCEFINAL EXAM.docxouldparis
UNIVERSITY OF LA VERNE
ECBU 500D – BUSINESS FINANCE
FINAL EXAM
DECEMBER 3, 2019
“STUDENT NAME”
A key difference between replacement and expansion project analyses is that with replacement, the incremental cash flows are measured as the net difference between projected cash flows from the current productive assets and cash flows of the proposed new productive assets.
True / False
The weighted average cost of capital increases if the total funds required call for an amount of equity in excess of what can be obtained as retained earnings.
True / False
Market risk refers to the tendency of a stock to move with the general stock market. A stock with above-average market risk will tend to be more volatile than an average stock, and it will have a beta which is greater than 1.0.
True / False
Other things held constant, an increase in financial leverage will increase a firm's market risk as measured by its beta coefficient.
True / False
The post-audit is a simple process in which actual results are compared to forecasted results and any discrepancy indicates a change in factors that are completely under management's control.
True / False
Short-term financing might be riskier than long-term financing because, during periods of tight credit, the firm might not be able to rollover (renew) its debt.
True / False
Effective capital budgeting can improve the timing of asset acquisition and the quality of assets purchased, thereby providing an opportunity to purchase and install assets before they are needed.
True / False
Since the degree of total leverage is equal to the degree of operating leverage times the degree of financial leverage, the degree of total leverage must always be greater than or equal to positive 1.0.
True / False
If the information content, or signaling, hypothesis is correct, then changes in dividend policy can be important with respect to firm value and capital costs.
True / False
A just-in-time system of inventory control requires that manufacturers coordinate production with suppliers so that raw materials or components arrive just as they are needed in the production process. The main objective of such a system is to reduce carrying costs.
True / False
The best and most comprehensive picture of a firm's liquidity position is obtained by examining its cash budget.
True / False
A firm’s goal should be to lengthen the cash conversion cycle since shorter cash conversion cycles leads firms to increase their dependence on costly external financing.
True / False
Conflicts between two mutually exclusive projects, where the NPV method chooses one project but the IRR method chooses the other, should generally be resolved in favor of the project with the higher NPV.
True / False
The primary goal of inventory management is to provide sufficient incentives to ensure that the firm never suffers a stock-out (i.e., runs out of an inventory item).
True / False
The ex-dividend date is the date on which a firm actually mails (funds) divid ...
Sheet4Assignment 1 LASA # 2—Capital Budgeting Techniques
Sheet1
Solution
:-A) Computation of WACC:-Cost of equity (Ke) will be calculated using dividend discount model which is as under:-Price of share (P0) = D1/(Ke-g)Ke = (D1/(P0*(1-f))) + gWhere,D1 = D0*(1+g)F = Flotation costKe = ((2.50*(1+6%))/(50*(1-10%))) + 6%Ke = 11.89%i) Equity financing and debt financing are two different sources of financing being used by the organizations to procure funds. Equity and debt are two different sources of financing, equity financing represents internal source of finance whereas debt financing represent external source of finance. Mixture of both is always used by the business organizations to procure funds and is most commonly known as target ratio or capital structure ratio. This ration varies from industry to industry and company and company depending upon various circumstances, equity financing can be raised only through issuing shares in market by the help of initial public offer whereas debt financing can be raise from many sources such as bonds, long term loans, money market instruments etc.Equity Financing has following advantages:1. The total cash flows generated can be used solely for investment purpose, rather than paying back the investors.2. Funds can be raised in shorter time as compared to other sources of funds.However, in equity financing, dilution of ownership easily occurs and more investors can lead to loss of Control.Cost of debt (Kd) will be calculated as follows:-Kd = Market rate of deb*(1-tax rate)Kd = 5%*(1-35%)Kd = 3.25%Debt is a more common source of finance used by most of the organizations, the reason for the same is as follows:-a. Debt is cheaper source of finance as compared to equity the reason being the cost associated with issuing the common stock like. Underwriters commission, legal expenses, various registration charges, issuing of prospectus, printing of various documents etc.b. Debt financing provide leverage to the company which will increase the Earning per Share (EPS) which in turn leads to increase in market value of share, this helps organization to maximize its market capitalization.However, if the expansion venture does not work in favour of the company, then these obligations of repayment of principal and interest may turnout to be a burden to the company. WACC = (Ke*We) + (Kd*Wd)WACC = (11.89%*70%) + (3.25%*30%)WACC = 9.30%B) Computation of NPV of project A:-Depreciation = Cost of the asset – salvage value Life of the asset = 1,500,000/ 3 = 500,000Calculation of cash flows:Revenue – 1,200,000Less Cost – 600,000Less Depreciation – 500,000Profit - 100,000Less taxes (35%) 35,000Profit after taxes .
what is the future of Pi Network currency.DOT TECH
The future of the Pi cryptocurrency is uncertain, and its success will depend on several factors. Pi is a relatively new cryptocurrency that aims to be user-friendly and accessible to a wide audience. Here are a few key considerations for its future:
Message: @Pi_vendor_247 on telegram if u want to sell PI COINS.
1. Mainnet Launch: As of my last knowledge update in January 2022, Pi was still in the testnet phase. Its success will depend on a successful transition to a mainnet, where actual transactions can take place.
2. User Adoption: Pi's success will be closely tied to user adoption. The more users who join the network and actively participate, the stronger the ecosystem can become.
3. Utility and Use Cases: For a cryptocurrency to thrive, it must offer utility and practical use cases. The Pi team has talked about various applications, including peer-to-peer transactions, smart contracts, and more. The development and implementation of these features will be essential.
4. Regulatory Environment: The regulatory environment for cryptocurrencies is evolving globally. How Pi navigates and complies with regulations in various jurisdictions will significantly impact its future.
5. Technology Development: The Pi network must continue to develop and improve its technology, security, and scalability to compete with established cryptocurrencies.
6. Community Engagement: The Pi community plays a critical role in its future. Engaged users can help build trust and grow the network.
7. Monetization and Sustainability: The Pi team's monetization strategy, such as fees, partnerships, or other revenue sources, will affect its long-term sustainability.
It's essential to approach Pi or any new cryptocurrency with caution and conduct due diligence. Cryptocurrency investments involve risks, and potential rewards can be uncertain. The success and future of Pi will depend on the collective efforts of its team, community, and the broader cryptocurrency market dynamics. It's advisable to stay updated on Pi's development and follow any updates from the official Pi Network website or announcements from the team.
how can I sell my pi coins for cash in a pi APPDOT TECH
You can't sell your pi coins in the pi network app. because it is not listed yet on any exchange.
The only way you can sell is by trading your pi coins with an investor (a person looking forward to hold massive amounts of pi coins before mainnet launch) .
You don't need to meet the investor directly all the trades are done with a pi vendor/merchant (a person that buys the pi coins from miners and resell it to investors)
I Will leave The telegram contact of my personal pi vendor, if you are finding a legitimate one.
@Pi_vendor_247
#pi network
#pi coins
#money
Resume
• Real GDP growth slowed down due to problems with access to electricity caused by the destruction of manoeuvrable electricity generation by Russian drones and missiles.
• Exports and imports continued growing due to better logistics through the Ukrainian sea corridor and road. Polish farmers and drivers stopped blocking borders at the end of April.
• In April, both the Tax and Customs Services over-executed the revenue plan. Moreover, the NBU transferred twice the planned profit to the budget.
• The European side approved the Ukraine Plan, which the government adopted to determine indicators for the Ukraine Facility. That approval will allow Ukraine to receive a EUR 1.9 bn loan from the EU in May. At the same time, the EU provided Ukraine with a EUR 1.5 bn loan in April, as the government fulfilled five indicators under the Ukraine Plan.
• The USA has finally approved an aid package for Ukraine, which includes USD 7.8 bn of budget support; however, the conditions and timing of the assistance are still unknown.
• As in March, annual consumer inflation amounted to 3.2% yoy in April.
• At the April monetary policy meeting, the NBU again reduced the key policy rate from 14.5% to 13.5% per annum.
• Over the past four weeks, the hryvnia exchange rate has stabilized in the UAH 39-40 per USD range.
Even tho Pi network is not listed on any exchange yet.
Buying/Selling or investing in pi network coins is highly possible through the help of vendors. You can buy from vendors[ buy directly from the pi network miners and resell it]. I will leave the telegram contact of my personal vendor.
@Pi_vendor_247
If you are looking for a pi coin investor. Then look no further because I have the right one he is a pi vendor (he buy and resell to whales in China). I met him on a crypto conference and ever since I and my friends have sold more than 10k pi coins to him And he bought all and still want more. I will drop his telegram handle below just send him a message.
@Pi_vendor_247
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how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
The secret way to sell pi coins effortlessly.DOT TECH
Well as we all know pi isn't launched yet. But you can still sell your pi coins effortlessly because some whales in China are interested in holding massive pi coins. And they are willing to pay good money for it. If you are interested in selling I will leave a contact for you. Just telegram this number below. I sold about 3000 pi coins to him and he paid me immediately.
Telegram: @Pi_vendor_247
Introduction to Indian Financial System ()Avanish Goel
The financial system of a country is an important tool for economic development of the country, as it helps in creation of wealth by linking savings with investments.
It facilitates the flow of funds form the households (savers) to business firms (investors) to aid in wealth creation and development of both the parties
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Turin Startup Ecosystem 2024 - Ricerca sulle Startup e il Sistema dell'Innov...Quotidiano Piemontese
Turin Startup Ecosystem 2024
Una ricerca de il Club degli Investitori, in collaborazione con ToTeM Torino Tech Map e con il supporto della ESCP Business School e di Growth Capital
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Nike Inc : Cost of Capital
1
2. Background
➔ Nike’s (NYSE: NKE) share price had declined significantly from the start of the
year 2001
➔ Kimi Ford, a portfolio manager at NorthPoint Group, is weighing whether to buy
Nike’s shares
➔ Nike revealed their plan to boost their revenue by developing more mid-priced
athletic shoes and pushing their apparel line. They would also give extra effort to
cut their expenses
➔ Analyst reactions were mixed. Some saw significant growth opportunities in
apparel and Nike’s international businesses, while some thought the financial
target to be too aggressive
➔ Kimi Ford has done cash-flow forecast and asked her new assistant, Joanna
Cohen, to estimate Nike’s COC
2
3. Business Problem
1. Nike’s revenue had plateaued at around $9 billion, while net income had fallen from
almost $800 million to $580 million
2. Nike’s market share in US athletic shoes had fallen from 48% in 1997 to 42% in 2000.
Financial Issue :
1. Single or Multiple Cost of Capital
2. Methodology for Calculating the Cost of Capital
3. Cost of Debt
4. Cost of Equity
3
4. Analysis
1. Single or Multiple Cost of Capital
✔ Single cost of capital is seen as a more proper application towards Nike as compared to
multiple cost of capital due to similar risks profiles within Nike’s business segmentation.
2. Methodology for Calculating the Cost of Capital
✔ The reason of calculating WACC is to estimate Nike’s value by applying WACC as the
discount rate in projecting the cash flow.
✔ WACC itself is the average of the costs of equity and debt, and gives each one the
appropriate weighting. By using a weighted average cost of capital, it allows the firm to
calculate the exact cost of financing any project.
3. Cost of Debt & Cost of Equity
✔ The WACC is used for discounting cash flows in the future, thus all components of cost must
reflect firm’s concurrent or future abilities in raising capital.
✔ Cohen mistakenly uses the historical data in estimating the cost of debt. She applied the
average historical balance of debt instead of applying the latest cost of debt as shown in Exhibit
4. It may not reflect Nike’s current or future cost of debt.
✔ Cohen also applied historical data in estimating beta for cost of equity calculation. This should
not occur in calculating cost of equity, in which the latest beta should be applied to reflect Nike’s
latest risk condition.
4
6. Current Condition (Shareprice vs Equity per Share)
With claim of the company of CoC=12% :
1. Equity per share was $37.24, while share price on stock market was $42.09 - which is overvalued.
2. Joana found out with discount rate of 11.17%, value per share will be exactly at $42.09.
3. Meaning that the company is over-claiming the COC at 12%.
6
7. WACC - Joana’s Assumption
By using 20 years assumption, Joana found out :
1. WACC is equal to 8.39%, resulting for $69.41 of value per share, which is actually much higher than share price
in stock market.
2. This means a green light for the company to acquire the shares, which was undervalued by 60% ($42.09/$69.41)
7
8. WACC - Correction for Joana’s Calculation
Some correction for Joanna calculation, due to over-lengthy duration of 20 years :
1. Using 10 years as based of calculation, correction on ß with latest to date to 0.69.
2. The Equity per share gained is $79.28, which is still still higher than market value at $42.09/share. This
means that current share prices is undervalue by 53%.
8
9. WACC - Damodaran Concept
With Damodaran concept, and 10 years bond rate as assumption:
1. Still the equity per share is much higher than market value ($64.61 out of $42.09). Market value is
undervalue by 65%.
2. Green light for the company to acquire the shares in stock market.
9
10. Recommendation
➔ The financial analysis showed that Nike shares was undervalued and acquisition of
shares could make a good return of investment of North Point Group.
➔ By considering estimated WACC, Equity Per Share, potential long-term revenue
growth, and potential earnings growth, it is recommended for North Point Group to
acquire Nike shares.
10