...Question a. Why is corporate finance important to all managers? Corporate Finance is important to all managers because it gives them the skills necessary to identify and select the corporate strategies that could add value to the company. Question b. Describe the organizational forms a company might have as it evolves from a start-up to a major corporation. List the advantages and disadvantages of each form. |Organizational Form |Advantages |Disadvantages | |Sole Proprietorship |It is easily and inexpensively formed. |Difficult to obtain the necessary capital | | |It is subject to few Government rules and |needed for expansion and growth. | | |regulations. |Due to unlimited personal liability for the | | |Its income is not subject to corporate |business’ debts, the Proprietor may incur | | |taxation, but is taxed as part of the |losses that exceed the money invested. | | |Proprietor’s personal income. |The life of the proprietorship is limited to | | ...
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...Study Guide Financial Management: Theory & Practice Fourteenth Edition Eugene F. Brigham University of Florida Michael C. Ehrhardt University of Tennessee ________________________________________________________________________________ Australia • Brazil • Japan • Korea • Mexico • Singapore • Spain • United Kingdom • United States Copyright 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. This is an electronic version of the print textbook. Due to electronic rights restrictions, some third party content may be suppressed. Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. The publisher reserves the right to remove content from this title at any time if subsequent rights restrictions require it. For valuable information on pricing, previous editions, changes to current editions, and alternate formats, please visit www.cengage.com/highered to search by ISBN#, author, title, or keyword for materials in your areas of interest. Copyright 2013 Cengage Learning. All Rights Reserved. May not be copied...
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...Corporate Finance Problem Set 1 1) Calculate the indicated amounts and financial ratios for Big Apple Enterprises. Please indicate the formula that you used to calculate the amounts or ratios. It may be most efficient to transfer the problem to an Excel spreadsheet and perform the calculations there. | Big Apple Enterprises | | | (1) | ------------------------------------------------- (2) | | | | | ------------------------------------------------- Common Size the Balance Sheet and Income Statement | ------------------------------------------------- | ------------------------------------------------- 2010 | ------------------------------------------------- 2011 | | ------------------------------------------------- 2010 | ------------------------------------------------- 2011 | ------------------------------------------------- Total Assets | ------------------------------------------------- 50000 | ------------------------------------------------- 65000 | | ------------------------------------------------- 100% | ------------------------------------------------- 100% | ------------------------------------------------- Inventories | ------------------------------------------------- 6000 | ------------------------------------------------- 9000 | | ------------------------------------------------- 12.0 | ------------------------------------------------- 13.8 | ------------------------------------------------- Receivables | ------------------------------------------------- ...
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...basic cause of international difference in financial reporting practice is the different degree of interference by governments in accounting. It is understood that “International Financial Reporting Standards (IFRS)” has been adopted in many countries around the world, as a minimum for the companies that are obliged for financial reporting. IFRS has been implemented in nearly one hundred and fifteen countries around the world, whilst phasing out the previous standard of rules of Generally Accepted Accounting Practice or more commonly known as GAAP. The United States is the only large major country to holdout and not adopt IFRS. IFRS is increasing its widespread backing from all over the world. All United States established companies are obliged to use the “Financial Accounting Standards Board FASB” (Wikipedia, 2012) many companies use these set of standards as they are “detailed and comprehensive” (Media Wiley) compared to the “International Accounting Standards Board IASB” (Wikipedia, 2012) which are more set in stone and less rule based. What the United States need is a set of high quality accounting standards improves comparability. “It is generally believed that IFRS has the best potential to provide a common platform on which companies can report and investors can compare financial information.” (Media Wiley) It is expected that if all countries adopt IFRS it will be beneficial for investors and others who use financial statements by reducing costs and increasing...
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...Financial Management Practices Good financial management is crucial for the expansion of any business. Successfully placing finances in order means a business can work more efficiently. One of the essential challenges in health care is to manage effectively the finances of the organization. Health care is unique in the way an organization operates based on the finances. This paper will identify effective and ineffective financial management practices that can help to make a company successful. Successfully managing the finances, such as budgeting and cash flow can mean the organization will always have enough money to pay any creditors and also have enough of a profit to operate the business. Effective and Ineffective Financial Management Practices Too often managers have an understanding of their product but not the financial statements of the organization. The manager must have an understanding of what is happening within the organization. The success of the organization can only be ensured by focusing on the factors that affect the performance of the organization. Having and focusing on a plan is essential for the survival of an organization; more so in the health care world because of the many and different areas of revenue. One major area of concern in health care is the third-party payer system. Health care does not have a single billing system for all customers. Managers have to deal with rules and regulations and payment systems from many government and third-party...
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...EBITDA of $8 million and net income of $2.4 million. It had $2.0 million of interest expense, and its corporate tax rate was 40%. What was its charge for depreciation and amortization? EBT = Net Income/ (1-T) = 2,400,000/ (1-.40) = $4,000,000 Tax = EBT * T = $4,000,000 * 40% = $1,600,000 Dep. & Amort. = Earning after Interest but before Depreciation – EBT Dep & Amort. = $6,000,000 - $4,000,000 =$2,000,000 (2-5) Kendall Corners Inc. recently reported net income of $3.1 million and depreciation of $500,000. What was its net cash flow? Assume it had no amortization expense. Net cash flow = Net income + Depreciation Net Income = $3,100,000 Depreciation = $500,000 NCF = $3,100,000 + $500,000 NCF = $3,600,000 (2-6) . In its most recent financial statements, Del-Castillo Inc. reported $70 million of net...
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...Executive Summary Non-Bank Financial Institutions (NBFIs) play a significant role in meeting the diverse financial need of various sectors of an economy and thus contribute to the economic development of the country as well as to the deepening of the country’s financial system. According to Goldsmith (1969), financial development in a country starts with the development of banking institutions. As the development process proceeds, NBFIs become prominent alongside the banking sector. The major business of most NBFIs in Bangladesh is leasing, though some are also diversifying into other lines of business like term lending, housing finance, merchant banking, equity financing, venture capital financing etc. Lease financing, term lending and housing finance constituted 94 percent of the total financing activities of all NBFIs up to June 2006. Industrial Promotion and Development Company (IPDC) was the first private sector NBFI in Bangladesh, which started its operation in 1981. Since then the number has been increasing and in December 2006 it reached 29. Of these, one is government owned, 15 are local (private) and the other 13 are established under joint venture with foreign participation. Leasing in Bangladesh, like in many of its peer countries, owes its origin to the efforts of the International Finance Corporation (IFC), Washington. At the instance of IFC, the first leasing company in Bangladesh, Industrial Development Leasing Company of Bangladesh Ltd. (IDLC) was set...
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...PRACTICE FINAL EXAM (Answers provided at practice test’s end) The following questions are worth 3 points each. Provide the single best response. 1. The primary goal of a publicly-owned firm interested in serving its stockholders should be to |a. |Maximize expected total corporate profit. | |b. |Maximize expected EPS. | |c. |Minimize the chances of losses. | |d. |Maximize the stock price per share. | |e. |Maximize expected net income. | 2. Which of the following actions are likely to reduce agency conflicts between stockholders and managers? |a. |Paying managers a large fixed salary. | |b. |Increasing the threat of corporate takeover. | |c. |Placing restrictive covenants in debt agreements. | |d. |All of the statements above are correct. ...
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...of the not-so-nutritious diet made available to them in their hall mess & canteen. Our campus provides quality food at hostel level, no doubt. But those people who follow a rigorous routine of workouts, gym, road-running, weekly matches, this mess food doesn’t guarantee the total nutrition that should be. Nutrition drive is being initiated with this motive only. The Games & Sports Council wants every deserving player of its contingent to get the maximum benefit. How to begin? Every 6 days a week, from 8 30 to 9 30pm a juice stall would be booked in front of hall 3, specifically for sports people. The stall owner would be given a list of captain’s & vice-captain’s name on it. Students who are regular in practice and have attended the practice session on that day can avail this facility, this would be done under the supervision of the captain or the vice-captain, one of them has to be present along with them. Every sport that our campus students play has a different strength than the other. To account for this, number of students who can benefit from this activity would be limited & the thing most important to this, only regular students can utilize this opportunity. There can be 3 different types of Juices that can be provided, namely pineapple, orange & any other seasonal fruit. Choice would be subjective to players. Benefits- The Objective of this nutrition drive is not only to provide students with the essential nutrition, but also ensure regularity...
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...A1 - Course Description: The introduction to Consumer Lending Course is designed for Financial/Credit Service staff that has limited or no experience in consumer lending and requires new and practical knowledge in Consumer Lending & Interviewing. This 7 hour full day session will equip you with the theory, knowledge and skill to provide yourself to conduct a proper lending experience for your members/clients. Strength of this course is to provide the best service to your member/client and the ability to apply this to your every day consumer lending environment. Trainees: 25 Financial/Credit Service Staff Members Time: 9 a.m to 5 p.m | * A2 – Course Outline: Time | Module Title | Module objective/s | 9:00AM – 9:30AM | Introduction * Trainer & Trainee Introductions * Housekeeping rules * Agenda | Trainer will begin by introducing herself with trainees introduction of themselves with a brief description so they are familiar with who they will be working with. | 9:30AM – 10:30AM | Module 1 - Retail Lending -Introduction to the Loan Portfolio, the definition, profitability, cross selling, 8 C’s of Credit & matching. | Trainees will listen closely to the topics discussed by taking notes of the 8 C’s of Credit. | 10:30AM – 10:45 | BREAK | BREAK | 10:45AM – 11:15 | Trainer will begin describing the lending process and reviewing the list of responsibilities assigned as a member consultant/lender. As a short group...
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...Technology’s Impact on Employee Training Introduction Technology impacts every aspect of our lives in the 21st century. In our fast-paced professional environments, we continually seek efficiencies with our time management skills and training methods that meet the real time needs of both the organization and the individuals that require that these learning objectives are implemented into their daily jobs. In the past, on-the-job training offered the most effective avenue for transferring knowledge. However, with the introduction of technology in the United States during the 20th century, ensuring quality standards were implemented meant that organizations had to re-evaluate their training methodologies. Additionally, laws implemented to advocate for workers also brought about changes in the approach to employee training. With the onset of technology as a helpmeet for understanding the needs of an organization as well as offering training that helps grow the business, employers began implementing these new technological learning opportunities when offering employees both company-centric and legally required training. Noe (2010) tell us that, “Recognizing the value of human, social, and structural knowledge, many companies are attempting to become learning organizations and to manage knowledge in order to develop better products and improve customer service.” Therefore, as companies proceed into the 21st century and modify their approach to training on a global scale...
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...Al-Adah Muhakkamah Definition Al-Adah Muhakkamah is the fifth maxim according to the sequences of the five main maxims. The basic meaning of it is "custom is a basic of judgment". The meaning of custom basically coming from the word "adah". It is also come from the word "urf" which brought up with the meaning with "adah". However there is slightly difference between word "adah" and "urf". "Adah" is referring toward only one person while "urf" referring toward a group of peoples. The definition of "adah" in the language term is something that repeatable or in other term habit. "Adah" can be referred as some actions or words that repeatedly be doing by human and that action is acceptable by human mind and nature. If the actions or words that had been used by a person toward a certain motive and repeat the actions it will be considered as "adah" or habit. If that actions is follows by others and widespred used among peoples it will considered as "urf". In the context of the maxim, custom and habit considered as the important thing in the part of human life. The actions that repeatedly being doing and actually become habit and custom in human life and society if the actions is not practiced will become a problem toward the situations. The basic example of the situation is the ijab and qabul in the transaction. Most of the places usually do not do the ijab and qabul the transaction even in the mazhab al-syafiiyah the ijab and qabul is a part of the transaction. But in term of Al-Adah...
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...Jocelinn Pineda 06/17/2013 Chapter 6 Exercise 6-1 The EHR in this physicians practice contains many functions. Look at the functions above. What function(s) do you think a medical assistant would use and why? Medical assistants might use the practice view icon to search for their email in case they are unable to contact a patient by phone. Patient view icon may be another function medical assistance may use for the administrative data of a patient. Exercise 6-2 Why is it important to use more than one attribute when searching for a patient, especially in addition to a first and/or last name? It’s important because the search using a first and/or last name can bring up two or more patient’s with the same names and if you use a birth date in the search a more accurate result of the patient that you are looking for can come up. Exercise 6-3 Briefly describe administrative, clinical, and billing data and state whether the screen above contains any such data. Administrative data is the information of the patient such as full name, date of birth, address, social security number, and telephone numbers. Clinical data is the patients health information. And billing data includes financial information about a patient; the screen above does contain administrative data. Exercise 6-4 The EHRS has the ability to capture data using a drop-down menu. What are the advantages and disadvantages of using a drop-down menu? An advantage of using a drop-down menu is that it makes...
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...Preparing ... Sales Staff to Promote Repackages Lines of Coppertone Introduction This essay will outline how ... (...) can successfully prepare its sales staff to promote repackaged lines of its Coppertone products. The identification of ...’s business strategy and the general training implications that result, has provided a general framework for the discussion of designing, developing and evaluating of an effective training session for the staff. 1.1 Business Strategy and Training Implications ... has decided to increase its product line by developing pocket-sized sticks and sprays of sunblock after conducting market research indicated that consumers were looking for a daily sunblock product. Managers have reasoned that ...’s that this move will result in a significant market expansion. ... is currently adopting an internal growth strategic direction. Organisational objectives outlined above, point toward an internal growth strategic direction. Firstly as ... wishes to increase product lines and expand its market, this points to a focus on product and market development as well as the marketing of an existing product. Innovation is achieved through the modifying the size of its existing sunblock for the convenience of consumers. In order for the sales force to be prepared to promote the new lines, this strategy has several training implications (Noe 2010). Market research has revealed an increased awareness of the dangers of sunburn. A fundamental element of this strategy...
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...Industry Management students will undertake On-the-job Training. Realizing the value of On-the-job training, and what it can do to the individual. The researcher felt that it was necessary to look into what difficulties are being encountered by students on the duration of their internship. CONCEPTUAL FRAMEWORK Colleges and universities require their students to undergo On-the-job Training within a specific number of hours as part of the curriculum. For the students, an OJT or internship program provides opportunities to go through the actual methodologies of a specific job using the real tools, equipment and documents. In effect, the workplace becomes a development venue for a student trainee to learn more about his chosen field and practice what he has learned from school. On the other hand, an effective OJT program also benefits the companies who accept trainees. First OJT or...
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