...Cost of Capital FINANCING DECISION In financing decision, it is totally concentrated on how to generate finance from long term sources It is also considered the following points: Cost of Finance Time period Purpose of Finance Amount of Finance Risk involvement SOURCES OF FINANCE Finance required for investing purpose may be from one or combination of the following sources: 1) From Debt Source 2) From Equity Source i. Ordinary Shares ii. Preference Shares iii. Retained Earning Why do we use different source of finance? COST OF FINANCE It is the minimum rate of return that a firm must earn on its investment for the market value of the firm to remain unchanged. WEIGHTED AVERAGE COST OF CAPITAL Capital is the combination of different components (sources) and the cost of each component is called specific cost. When these specific costs are combined to arrive at overall cost of capital, it is referred to as the weighted average cost of capital. Assumptions Entity’s financial and business risks are unaffected by the acceptance and financing of projects. Financial structure of the entity remains constant. It means that if the entity needs additional funds then are to be raised in accordance with the existing proportion. Components of Cost of Capital Risk-free cost of particular type of financing (r) Business risk premium (b) Financial risk premium (f) k = r + b +f Explicit and Implicit Cost Explicit Cost From the desk of M. Azam 1 Cost...
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...overall working experience than your competition. You put your firm on an upward spiral of improvement. 2. You can do exponentially higher quality (thus higher value) work for your clients. Think about it. A Ferrari doesn't take 10 times more time and effort to me make than a Ford. Yet, even an entry level Ferrari costs more than 10 times of a Ford. And there is a huge difference in the quality of service. 3. You can retain top-tier talent to provide top-drawer service. Unlike junk food joints that can produce consistent and predictable results using minimum-wage kids and rigid systems, selling high-margin stuff need both good systems and real talents, not merely workers. Go to a specific junk food joint and order only some deserts. The kid on the other side of the counter will ask you, following the rigid system, if you want fries with it. 4. You can create a fatter piggy bank to finance various initiatives in your firm. You can be more responsive to your clients, you can send your people to the best skill building programmes. You have more time and financial resources to respond rapidly to client emergencies which will put you head and shoulders above your competition. 5. You can better focus on servicing the few existing clients and stay in touch with your five star prospects. It means you can create value beyond the scope of the basics of your merchandise because you're not watching the watch and you're not on an airtight schedule. 6. Your overall sales...
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...its program, preferably experienced with a context for learning. This eclectic approach in admitting students with international exposure, variety and experience result in an optimum exposure to learning opportunities. The interlocking of business verticals can be best understood by undergoing rigors of a well crafted MBA curriculum. The theoretical grounding in subjects of marketing, finance and strategy prepares a well rounded business manager who can leverage his learning to morph any bystander into a potential client - investor who sees value in your proposals. Myriads treat the course as any education program running behind grades and frittering away invaluable time. Instead the objective of a bschool should be to inculcate skills in students to do research, gain perspectives and experience that an industry expects out of a manager. For students and other potential stakeholders such as parents the perceived undercurrent (cost benefit analysis) when it comes to placement announcements and the bschool ratings justifies their decision for considering one bschool over another. Is MBA a shortcut to getting better paid jobs and is it a guarantee of minimum skills? This irrational belief that absolute recognition and relative compensation is more important than quality, promises to suffocate our education...
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...are get grouped together. For example, the finance department of a company typically only communicates with other members of that same group. An Active Directory distribution group allows all members of the finance department to email without having to type every individual name in the email. Security groups are used to provide or deny access to users or devices to shares, files, or even other devices, these are called security permissions. Security permissions can be added to any distribution or security group, however email cannot be sent to a distribution group. Active Directory allows administrators to designate network users as owners or delegates of other security or distribution groups, to be updated as needed. Organizational management is made possible through the use of Organizational Units aka OU’s. Basically, OU’s allow users, computers, or devices on the same network to be grouped together to best fit the Companies needs. This makes searching for or accessing a device, user, or group far less complex than if all domain items were listed together. For example, the Company I work for has over 20 sites spread across the U.S., and to simplify user management and security each site has OU’s setup within Active Directory. This means that users in Georgia are grouped differently than users in California, which allows administrators to only apply the security rights needed for that site. Also Active Directory is full of shortcuts to assist in account creation...
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...Corporate ownership is one of three broad categories of legal ownership of a business, along with sole proprietorship and partnership. Both proprietorship and partnership categories of business ownership are simple arrangements that can be entered into and dissolved fairly easily. Incorporation, on the other hand, is a more complex process for it involves the creation of a legal entity that serves as a sort of "person" that can enter into and dissolve contracts; incur debts; initiate or be the recipient of legal action; and own, acquire, and sell goods and property. A corporation, which must be chartered by a state or the federal government, is recognized as having rights, privileges, assets, and liabilities distinct from those of its owners. ADVANTAGES OF INCORPORATION • Raising Capital—. It is much easier to raise new capital. The ability to issue shares is simplified for raising capital investment. Incorporation is generally regarded that the owners are serious about their business enterprise, and intend to devote time and resources to the venture for a significant period of time. This factor, as well as the reporting requirements of incorporation and—in some cases—the owners' more formidable financial resources—make corporations more attractive to some lending institutions. • Ease of Ownership Transfer—Ownership of the company can be transferred fairly easily by simply selling stock (though some corporations attach restrictions in this regard). • Tax Advantages—Some...
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...routinely and upgrading their security as soon as an upgrade is available. They might even be able to reduce vulnerability even before it rears its ugly head, but what happens when a company decides to outsource some of their work to third party vendors such as business functions and private client information? Even though your company has a stellar track record for security for the business operations they control, they put themselves in a vulnerable position by outsourcing their work, because then you are only as secure as your outsourced business partners. In this paper we will discuss the outsourcing risk of the use of an external service provider for your data storage, the use of an enterprise service provider for processing information systems applications, the use of vendors to support your desktop computers, and the use of a vendor to provide network security. Outsourcing Data Storage A company that secures its valuable assets and protects their secret information within the four walls of the building allows themselves to be vulnerable as soon as they outsource their data to stored by a third party. The problem is generally a manageable one for small business with one or two vendors they outsource too, but as the company grows and the amount of vendors they deal with grows; the issue then becomes exponentially greater. If that vendor gets their network hacked and a hacker steals the information you gave the vendor to protect, then there is...
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...Information Systems: A Research Paper By Greg Butler Student ####### American Military University MC302 D002 Summer 07 October 23, 2007 Management Information Systems: A Research Paper Executive Summary. In April 2004, after a year of planning, preparation, and training, the City of La Quinta “went live” with an enterprise-wide, integrated information system for the first time in its 22-year history. For the roughly one hundred member staff, it was a revolutionary leap. Previously, each functional department had selected, purchased, and implemented its own best solution to facilitate day-to-day operations. The implementation of SunGard’s HTE NaviLine software required infrastructure improvements and behind-the-scenes setup. The result was several databases for common use among departments and several automation improvements to previous transaction processing systems. Functional departments, individually and collectively, are able to spend more time concentrating on serving customers and less time searching City Hall for a needed piece of information. Implementation in two final departments will lead to even better service, particularly for those in the development community. The system is challenging, but powerful by virtue of its use of a multi-platform IBM® System i™ server. It is moderately user-friendly by virtue of NaviLine’s Web browser interface. Several improvements are necessary to make the system truly great, but in its current state the system represents...
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...For many businesses, risk management has been identified as a way to thwart and reduce losses, as well as develop business performance. A collection of new tools have been introduced over the past few years to help measure enterprise risk. The Committee of Sponsoring Organizations of the Treadway Commission (COSO) has also played a major role in helping companies manage risk. COSO was formed in 1985 and is a U.S. private sector initiative whose major goal is to identify the different factors that lead to fraudulent activities such as fraudulent financial reporting and make recommendations to reduce the incidences. COSO established a variety of internal controls and criteria that companies and organizations can use to assess their control systems in order to manage risk. “In 2001, COSO initiated a project, and engaged PricewaterhouseCoopers, to develop a framework that would be readily usable by managements to evaluate and improve their organizations’ enterprise risk management” (COSO Executive Summary, 2004). Based on the many COSO recommendations of risk management, many companies and businesses have implemented enterprise risk management techniques within their organization. The goal of this paper is to summarize a plan to apply enterprise risk management for New Mexico Solutions. “The underlying principle of enterprise risk management is that every entity exists to provide value for its stakeholders. All entities face uncertainty and the challenge for management is to determine...
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...Keyboard shortcuts To do this Press Switch to the next program. ALT+TAB Switch to the previous program. ALT+SHIFT+TAB Display the Windows Start menu. CTRL+ESC Close the selected workbook window. CTRL+W or CTRL+F4 Restore the window size of the selected workbook window. CTRL+F5 Switch to the next pane in a worksheet that has been split (Window menu, Split command). F6 Note When the task pane (task pane: A window within an Office application that provides commonly used commands. Its location and small size allow you to use these commands while still working on your files.) is visible, F6 includes that pane when switching between panes. Switch to the previous pane in a worksheet that has been split. SHIFT+F6 Note When the task pane is visible, SHIFT+F6 includes that pane when switching between panes. When more than one workbook window is open, switch to the next workbook window. CTRL+F6 Switch to the previous workbook window. CTRL+SHIFT+F6 When a workbook window is not maximized, perform the Move command (on the Control menu for the workbook window). Use the arrow keys to move the window, and when finished press ESC. CTRL+F7 When a workbook window is not maximized, perform the Size command (on the Control menu for the workbook window). Use the arrow keys to resize the window, and when finished press ENTER. CTRL+F8 Minimize a workbook window to an icon. CTRL+F9 Maximize or restore the selected workbook window. CTRL+F10 ...
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... | |Computer Fundamentals : (4) | | | |Block Diagram and functions of computers – Latest input and output devices-Types of memories-Types of Software- Basics of operating system – Desktop | |and Server OS. | |MS-Word : (10) | | | |About all toolbars-Shortcut keys-Formatting-editing-header/footer-tab setting-decimal tabs- margin setting- paper setting - spell check-Tables – Mail | |merge – Labels – Table of Contents -Inserting objects – WordArt- Creating webpages, reports, fax and email using...
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...Abstract This paper is in response to Riordan Manufacturing service request SR-rm-004 and will analyze the HR system and how to integrate the existing tools in use today into a single application. Riordan is seeking an upgraded system for their human resources department. In this paper I will identify and describe each phase of this new system development life cycle project from beginning to end. We will break down each section to make sure that each phase of the project is well communicated and answer any questions that may arise. The COO of Riordan Manufacturing, requests an analysis of the HR system. The request is for an integration of the existing range of tools into one unified system. Riordan is looking for a modern information system for the human resources department. A system plan to improve human resources department information systems will be the basis of this summary. History and Background of Riordan Manufacturing Riordan Manufacturing Inc. began with Dr. Riordan, a chemistry professor. Dr. Riordan received approval for a few patents that involved processing polymers into super strong plastic substrates. In 1991 Dr. Riordan started Riordan Plastics, Inc. after he discovered the commercial power and economic benefits of his patents. Riordan took on a new direction of paying more attention to research and development. He also made sure he maintained the licenses of those patents he had already obtained to help further is business...
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...shares etc. Why Career In Banking With the growing appetite of banks to venture into services and expanding the definition of the term “banking”, there is clearly a huge opportunity for people who want to have banking as their career option. The avenues and opportunities in this sector seem to be limitless with the advent of this new age banking systems. There are currently 81 scheduled commercial banks with a combined network of 53,000 branches in India. With this kind of a growth it comes as no surprise that the banking sector was the largest job provider for the last 3 years. It is estimated that there is a requirement for about 7.5 lakh bank job positions that needs to be filled in the next 5 years. These openings are across the various banking designations: from bank clerks to probationary officers, IT officers. Apart from the MBAs and CAs there is a good scope for technical posts like agricultural officers, industry officers, law officers and economic officers. Career Path of Probationary officer A banks probationary officer is the entry level recruitment for bank officers. They will be trained for accounting, marketing, finance, investment as well as billing and a PO’s...
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...ASSIGNMENT (MIS IN ACTION) NAME: COMMFORT HAMMOND CLASS: LEVEL 400, BHM INDEX NUMBER: 11016152 COURSE: MANAGEMNET INFORMATION SYSTEMS DATE: 13/9/2012 MANAGEMENT INFORMATION SYSTEMS GROUP ASSIGNMENT PROGRAMME: BHM, LEVEL 400 LECTURER: DR. MARGARET CRABBE 1. What kind of information does the Web site provide for individuals, small businesses and large businesses? List these services and write several paragraphs describing one of them, such as UPS Trade Direct or Automated Shipment Processing. Explain how you or your business would benefit form it. Answer United Parcel Service (UPS) has a wide variety of information and services for its various clients across the globe. Individuals can tap into a network of resources that helps them manage their businesses more easily, from packing and shipping, to tracking and billing such as: * Reliable delivery services without any worries on the part of the individual * * Provision of information on how to prepare a shipment from the Packaging Advisor and then create shipments online. * Invoices and pay bills are made available for viewing and billing reports are built to monitor shipping expenses, and to find out instantly how much products have been shipped all from the UPS Billing Center. * Better staff management techniques are also provided r when anticipating high-volume shipping and receiving with UPS Tracking. * People are more able to focus on their priorities through the...
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...Financial Resources Business financial resources that may indicate strength during your SWOT analysis include financial resources derived from sales activities, income from investors and the value of company infrastructure. Strong financial performance will enable a company to take advantage future opportunities. When an organization's financial indicators show weakness, the organization must assess which actions to take to improve its financial performance. Market Research When you are conducting a SWOT analysis, effective market research will show all the opportunities that are available to your company or organization. If your company is in a strong position, your analysis will help you decide the best approach for taking advantage of business opportunities. If your company is not presently positioned to take advantage of future opportunities, the SWOT analysis will help you decide which actions will strengthen your company's position. According to the University of Missouri Extension, "marketing touches every aspect of your business' operation." Related Reading: SWOT Analysis for Breakfast Cereal Performance Indicators Performance indicators provide the information that managers need to understand how the organization is performing in relation to its strategic goals and strategic objectives. In a SWOT analysis, performance indicators help a company determine how it can improve business operations, and determine how they can capitalize on strengths. Performance indicators...
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...Bernard Mitchell Jr. Forensic Accounting Prof. Steffel May 23, 2013 The Forensic Accountant What is a forensic accountant? There are many attributes that are needed to be a forensic accountant. Bolgna and Linquist (1995) defined forensic accounting as the application of financial skills and an investigative mentality to unresolved issues, conducted within the context of the rules of evidence. In 2011, a definition in Accountancy Ireland, noted: “Forensic accounting has been defined as "the science of gathering and presenting financial information in a form that will be accepted by a court of jurisprudence against perpetrators of economic crimes". The field integrates accounting, auditing and investigative competences to detect and prevent financial irregularities in business. (Idowa, 2011). This is a growing field so the definition will grow continuously over time. There is a great deal of gathering information included in being a forensic accountant. The biggest skill is having above average skill when it comes to looking for details. Each detail has to be exact in order when being presented during a case. In order to be successful you have to have a drive that keeps you thirsting for the truth. Anytime that you have to go looking through documents and other financial information you have to pay close...
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