MANAGING WORKING CAPITAL Cash Budgets and Current Assets Learning Objectives Upon reading this chapter‚ students should: • Be able to compare and contrast working and fixed capital • Understand the impact of the operating cycle on the size of investment in accounts receivable and inventories • Know the differences between the three motives • Be able to differentiate between float‚ collection float‚ and disbursement float • Know how
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Dell’s Working Capital The Case: Dell Computers Corporation has been growing faster than its competitors. It has revolutionized the PC industry by providing customized laptops & notebooks to its customers in a few days at competitive prices. It did so by building computers after it received customer’s orders. This enabled Dell to swiftly roll out new products‚ maintain lower inventory & respond quickly to market needs. It generated more cash due to low cash conversion cycle. Low inventory coupled
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Toyota Cost of Capital Case: General Methodology We used the following framework to do the calculations for all the companies. Afterwards we will discuss their implications: To estimate the cost of equity (RE) we used the following CAPM model: RE = RF + βE (RM-RF) whereby‚ Market Premium = RM – RF = 6% (Given in case) RM = Return for S & P 500 (a market return that takes into account systematic risk associated with the market place where our company is traded‚ NYSE) Risk Free Rate
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| Natural Gas | | | | | | | Table of Contents Introduction 3 Principal Factors Influencing Demand 3 Residential and Commercial Heating 3 Price and Fuel Switching 3 Industrial Advancements 3 Growing Environmental Concern 4 Recent Natural Disasters 4 Growing Global Demand 4 Principal Factors Influencing Supply 5 Technology 6 Infrastructure 6 Unconventional Sources 7 Availability 7 About the Industry 8 Natural Gas Price Trends 9 The Future of Natural
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CAPITAL STRUCTURE DECISIONS When a firm is seeking financing for a project it is usually a choice between additional debt financing or an additional equity issue‚ assuming internally generated funds are not sufficient. The chosen option of financing can make a difference to EPS (earnings per share )‚ which is an important investment analyst ratio. Example : Assume Cherokee Tire Co’s long term capitalization of $18 mill is as follows : Debt $5 mill @ 9 per cent.
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The justification of capital punishment has been an on going debate for quite sometime. As in the case of any argument theirs two sides too each argument. In this particular argument "society’s self defense" essay by Amber Young the opposed battle the idea of capital punishment and think that overall its unjust and falls under cruel and unusual punishment. Amber Young’s evaluations on the issue of capital punishment reaches out to everyone and leave a trembling thought in ones mind. The thought
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Section Capital Punishment The Bahamas hanged 50 men since 1929 according to records kept at Her Majesty’s Prison. Five were hanged under the Ingraham administration; 13 were hanged under the Pindling government‚ and 32 inmates were executed between 1929 and 1967. The last act of capital punishment in The Bahamas took place on January 6‚ 2000 when convicted murderer David Mitchel was executed by hanging. Mitchel was convicted of stabbing two German tourists to death. (Nassau Guardian‚ published:
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least it would look like this. Older: Retribution‚ Deterring‚ isolation‚ rehabilitation (only if it was available). Modern: Rehabilitation‚ Isolation‚ Deterring‚ Retribution (Hardly ever the case). Older forms of capital punishment revolved around retribution. In the modern era Capital punishment is hardly enforced and courts would prefer to isolate that person before killing them. Deterring a person from breaking a rule was a major method of punishment in older times (1500-1860). Public beatings
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1. Bob’s Warehouse has a pre-tax cost of debt of 8.4 percent and an unlevered cost of capital of 14.6 percent. The firm’s tax rate is 37 percent and the cost of equity is 18 percent. What is the firm’s debt-equity ratio? | 0.76 | | 0.82 | | 0.79 | | 0.87 | | 0.72 | 2. Johnson Tire Distributors has an unlevered cost of capital of 11 percent‚ a tax rate of 34 percent‚ and expected earnings before interest and taxes of $1‚400. The company has $2‚700 in bonds
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“What’s Natural about Our Natural Products?” by Sarah Federman‚ Sarah talks about how the words “ nature “ and “ natural “ are being used to sell more products and seem “ healthy “. She goes on to discuss how the word “ natural “ has turned into a marketing asset. Federman shows readers that food companies‚ uses these words to manipulate consumers to buy more of their products. It is a technique that’s used for products like Kraft Cheese to get sales to go up. It is known that Kraft sells Natural Shredded
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