...Week Ten Homework All homework must be handed in Question One: Economic Value Added (to be handed in) 1. i. What is the difference between economic profit (EVA) and accounting profit (NI)? Is it possible to have a positive NI and negative EVA? Is it possible to have a negative NI and positive EVA? Why or why not ii. When is a company “destroying value” in an EVA framework? iii. What is the difference between ROIC and ROA? 2. In order to answer the following question, look at the Sanity Test described on p.10 of the classnotes. For Costco calculate the following using assumptions in Part I of Week 6 homework: i. Take the Value of the firm as of the date of valuation, and decompose it into the “future growth value” of the company and the value of the firm if it earned its current EVA in perpetuity. ii. Determine the future growth value as a percentage of Firm Value. This is called the Sanity Test. iii. The Enterprise value of Costco was approximately $38,308M as of September 2012. At this EV, what percentage of this value comes from “future growth value” in EVA? What is the percentage of value that comes from MVA? (Use IC as of September 2012) iv. What is the relationship between EVA and MVA? v. What is the relationship between MVA and NPV? 3. Use your Costco Model – Part 1 to answer the following questions. i. What information can you glean about Costco from just looking at FCFF worksheet? ii. ...
Words: 464 - Pages: 2
...How external forces effect the Australian economy Real Gross Domestic Product is a measure of GDP. RGDP is an inflation-adjusted measure that reflects the final market value of all goods and services produced at the end of any given year, regardless to any change in price or purchasing power. The inflation rate is a measure of inflation and is the percentage increase in the price of goods and services expressed on a yearly basis. The inflation rate can be measured by observing the consumer price index and the GDP Price Deflator. The unemployment rate is a measure of unemployment. The unemployment rate is a percentage of the total workforce who is currently unemployed. Low rates are seen as inflationary because of the upward pressure on incomes, and high rates lead to a decrease in consumer spending. | |2003 |2004 |2005 |2006 |2007 | |RGDP Growth |3.4% |3.2% |3.2% |2.5% |4.4% | |Inflation Rate |2.4% |2.6% |2.8% |3.3% |3.0% | |Unemployment Rate |6.3% |6.0% |5.1% |5.1% |4.9% | [pic] http://www.dfat.gov.au/GEO/fs/aust.pdf (RGDP Growth & Inflation Rate) http://www.indexmundi.com/australia/unemployment_rate.html (Unemployment Rate) The business cycle is the fluctuations in the economic growth over a long period of time. The business cycle can rather irregular and does not tend to follow any given particular pattern. There are four main stages that occur during the business cycle; an expansion, where growth is above average, a peak, the highest point of the growth...
Words: 638 - Pages: 3
...ABE School of Business Main Campus, Manila A Research Presented to Mr. Arnel A. Cueto Instructor In Partial Fulfillment of the Requirements for the Subject Computer Ethics Perspectives Presented By: Patrick Troy R. Luberio Meghan Magcuro Jeffrey b. Santos Xavier Ray C. Yunzal Nichael Bonn S. Corpus August 2014 Time: 4:00-9:00PM Introduction In the industrialized world computers are changing everything: from education to health, from voting to making friends or making war. Developing countries can also fully participate in cyberspace and make use of opportunities offered by global networks. We are living a technological and informational revolution. It is therefore important for policy makers, leaders, teachers, computer professionals and all social thinkers to get involved in the social and ethical impacts of this communication technology. The origins of computer ethics can be traced to the 1940s to the time at which cybernetics and digital computers were first developed. These developments prompted Wiener (1948) to recognize both the good and evil inherent in these artificial machines. Since then, attempts have progressively been made to explore computer ethics from a variety of perspectives including that of computer ethics as not a real discipline, as a pedagogical methodology, as a unique discipline, as applied ethics, and as employing information ethics as the foundation of computer ethics the increasing integration of information and...
Words: 1236 - Pages: 5
...Running Head: INVESTMENT STRATEGY TUI UNIVERSITY Ford Foundation Investment Strategy James J. Chapa FIN 504 Module 1 Case Assignment Dr. Geoffrey Clarkson January 24, 2009 The Ford Foundation’s investment policies are a critical component of continued organizational success. To support its wide range of programs, the Foundation relies on a solid financial foundation and reliable sources of income. Quality investments provide part of this critical revenue stream. Setting a solid investment strategy requires an understanding of investment fundamentals, coupled with the investment goals of the Foundation. Analysis of these concepts shows why the optimal investment strategy for the Ford Foundation differs from that of other organizations or even individual investors, as the unique goals of foundations require particular investment philosophies. The Foundation faces financial decisions concerning not only how to use money today, but how to manage money and assets saved for later use. The methods used to save or invest this capital have a dramatic effect on the Foundation’s ability to achieve its mission in the future. Inflation constantly threatens to erode the future purchasing power of today’s savings. All investors must find ways to “put their savings to work,” seeking rates of return that compensate or overcome the effects of inflation and ensure adequate funds exist to meet future needs. First, investors must determine their goals....
Words: 1735 - Pages: 7
...SEATTLE PACIFIC UNIVERSITY School of Business and Economics BUS 6220 CRN 43797 Office: McKenna Hall 205 Financial Analysis Phone: 281-3523 Dr. Herbert Kierulff Hours: Th. 1-6 and by appt. hkierulf@spu.edu Classroom: McKenna 111 "…value reflects only our opinions and not the true worth of the things themselves." Francisco de Osuna, Third Spiritual Alphabet COURSE OBJECTIVES: By the end of this course you should be able to demonstrate greater competence in: * Doing short and long term financial planning and budgeting, strategic analysis and decision making under conditions of rapid change and uncertainty. * Applying the fundamental and practical principles of valuation to pricing and to real investment opportunities. * Gathering information, separating relevant from irrelevant factors, selecting and evaluating relevant options with regard to their consequences, and selecting and defending a course of action. * Conceptualizing complex issues and reducing them to coherent written and oral statements. * Integrating valuation and investment analysis with the other functional areas of business administration including business processes and information technology. * Working effectively in group...
Words: 4804 - Pages: 20
...The Kalman Filter Max Welling California Institute of Technology 136-93 Pasadena, CA 91125 welling@vision.caltech.edu Until now we have only looked at systems without any dynamics or structure over time. The models had spatial structure but were de ned at one moment in time, i.e. they were \static". In this lecture we will analyse a powerfull dynamic model, which could be characterized as factor analysis over time, although the number of observed features is not necessarily larger than the number of factors. The idea is again to compute only the mean and the covariance statistics, i.e. to characterize the probabilities by Gaussians. This has the advantage of being completely tractible (for strongly nonlinear systems the Gaussian assumption can no longer hold). The power of the Kalman Filter (KF), is that it operates on-line. This implies, that to compute the best estimate of the state and its uncertainty, we can update the previous estimates by the new measurement. This implies that we don't have to consider all the previous data again, to compute the optimal estimates; we only need to consider the estimates from the previous time step and the new measurement. So what are KFs usually used for, or what do they model? It is not hard to motivate the KF, because in practice it can be used for almost \everthing that moves". Popular applications include, navigation, guidance, radar tracking, sonar ranging, satellite orbit computation, stock prize prediction, etc. These applications...
Words: 5610 - Pages: 23
...Classnote Prof. Gordon Bodnar Techniques for Managing Exchange Rate Exposure A firm's economic exposure to the exchange rate is the impact on net cash flow effects of a change in the exchange rate. It consists of the combination of transaction exposure and operating exposure. Having determined whether the firm should hedge its exposure, this note will discuss the various things that a firm can do to reduce its economic exposure. Our discussion will consider two different approaches to handling these exposures: real operating hedges and financial hedges. Transaction Exposure Financial Techniques of Managing Transaction Exposure Transaction exposure hedging should have been discussed in some detail in the previous international finance course; however, we will briefly go over the standard financial methods available for hedging this exposure. The main distinction between transaction exposure and operating exposure is the ease with which one can identify the size of a transaction exposure. This, combined with the fact that it has a well-defined time interval associated with it makes it extremely suitable for hedging with financial instruments. Among the more standard methods for hedging transaction exposure are: i) Forward Contracts - When a firm has an agreement to pay (receive) a fixed amount of foreign currency at some date in the future, in most currencies it can obtain a contract today that specifies a price at which it can buy (sell) the foreign currency at the specified...
Words: 8865 - Pages: 36
...THE ECONOMICS OF POLYGAMY Amyra Shechtman Grossbard, UNIVERSITY OF SOUTHERN CALIFORNIA INTRODUCTION Polygamy can take the form of polyandry (several men share a woman) or of polygyny (a man marries several women). The latter form is more common, as nearly all sub-Saharan and most Muslim countries permit it. In parts of sub-Saharan Africa, as many as 35% of married men are polygynous (Dorjahn, 1959), so that the majority of the population participates in a polygynous household at some time. This paper uses economic theory to offer insights into the determinants of polygamy. Since I will try to establish some correspondence between theory and facts around the world, the focus will be on the more common type of plural marriage, polygyny. The theory developed in the first section is based on Becker's economics of marriage. Although anthropologists (for instance, Goldschmidt, 1974) and sociologists (for instance, Rosenthal, 1970) have previously used the concept of marriage market, they have not developed the theoretical implications of Research in Population Economics, Vol. 2, pages 321-350 Copyright © 1980 by JAI Press Inc. All rights of reproduction in any form reserved. ISBN: 0-89232-125-3 32i . 322 AMYRA SHECHTMAN GROSS BARD that concept to the extent that Becker has in his "A Theory of Marriage . .. This paper expands on Becker's analysis of polygamy both in theory and in empirical work . An extensive review of cross-cultural evidence, largely based...
Words: 11472 - Pages: 46
...Mathematical Writing by Donald E. Knuth, Tracy Larrabee, and Paul M. Roberts This report is based on a course of the same name given at Stanford University during autumn quarter, 1987. Here’s the catalog description: CS 209. Mathematical Writing—Issues of technical writing and the effective presentation of mathematics and computer science. Preparation of theses, papers, books, and “literate” computer programs. A term paper on a topic of your choice; this paper may be used for credit in another course. The first three lectures were a “minicourse” that summarized the basics. About two hundred people attended those three sessions, which were devoted primarily to a discussion of the points in §1 of this report. An exercise (§2) and a suggested solution (§3) were also part of the minicourse. The remaining 28 lectures covered these and other issues in depth. We saw many examples of “before” and “after” from manuscripts in progress. We learned how to avoid excessive subscripts and superscripts. We discussed the documentation of algorithms, computer programs, and user manuals. We considered the process of refereeing and editing. We studied how to make effective diagrams and tables, and how to find appropriate quotations to spice up a text. Some of the material duplicated some of what would be discussed in writing classes offered by the English department, but the vast majority of the lectures were devoted to issues that are specific to mathematics and/or computer science. Guest lectures by...
Words: 48549 - Pages: 195
...A2 Religious Studies Revision Booklet To be used alongside the textbook and your classnotes. Contents G581: Philosophy of Religion Religious Language......................................................………p.1 Religious Experience........................................................…...p.7 Miracles..................................................................…………...p.12 Nature of God............................................................………...p.16 Life and Death.........................................................…………..p.20 G582: Religious Ethics Meta-ethics...........................…………………………………….p.25 Free Will and Determinism………………………………….……p.28 Conscience.......................…………………………………….…p.32 Virtue Ethics………………………………………………………..p.36 Sexual Ethics…………………………………………………...….p.40 Environment and Business Ethics……………………………….p.44 Religious Language Introduction The problems of religious language: • If we use language univocally about God, then we are limiting him / making him like a human • If we use language equivocally about God, we cannot be sure what the word means when applied to God • Are statements about God supposed to be cognitive – if so, what evidence proves / disproves them? • Are statements about God supposed to be non-cognitive – if so, do they have any meaning? The Verification...
Words: 22600 - Pages: 91
...SENIOR SECONDARY COURSE PHYSICS 1 (CORE MODULES) Coordinators Dr. Oum Prakash Sharma Sh. R.S. Dass NATIONAL INSTITUTE OF OPEN SCHOOLING A-25, INSTITUTIONAL AREA, SECTOR-62, NOIDA-201301 (UP) COURSE DESIGN COMMITTEE CHAIRMAN Prof. S.C. Garg Former Pro-Vice Chancellor IGNOU, Maidan Garhi, Delhi MEMBERS Prof. A.R. Verma Former Director, National Physical Laboratory, Delhi, 160, Deepali Enclave Pitampura, Delhi-34 Dr. Naresh Kumar Reader (Rtd.) Deptt. of Physics Hindu College, D.U. Dr. Oum Prakash Sharma Asstt. Director (Academic) NIOS, Delhi Prof. L.S. Kothari Prof. of Physics (Retd.) Delhi University 71, Vaishali, Delhi-11008 Dr. Vajayshree Prof. of Physics IGNOU, Maidan Garhi Delhi Sh. R.S. Dass Vice Principal (Rtd.) BRMVB, Sr. Sec. School Lajpat Nagar, New Delhi-110024 Dr. G.S. Singh Prof. of Physics IIT Roorkee Sh. K.S. Upadhyaya Principal Jawahar Navodaya Vidyalaya Rohilla Mohammadabad (U.P.) Dr. V.B. Bhatia Prof. of Physics (Retd.) Delhi University 215, Sector-21, Faridabad COURSE DEVELOPMENT TEAM CHAIRMAN Prof. S.C. Garg Former Pro-Vice Chancellor IGNOU, Delhi MEMBERS Prof. V.B. Bhatia 215, Sector-21, Faridabad Prof. B.B. Tripathi Prof. of Physics (Retd.), IIT Delhi 9-A, Awadhpuri, Sarvodaya Nagar Lucknow-226016 Sh. K.S. Upadhyaya Principal Navodaya Vidyalaya Rohilla Mohammadabad, (U.P.) Dr. V.P. Shrivastava Reader (Physics) D.E.S.M., NCERT, Delhi EDITORS TEAM CHAIRMAN Prof. S.C. Garg Former Pro-Vice Chancellor IGNOU, Delhi MEMBERS Prof. B.B. Tripathi Prof...
Words: 131353 - Pages: 526
