Buffalo Bill was born in Iowa in 1846, along with his two brothers and five sisters. Samuel Cody and Charles Cody were his brothers. His sisters were Julia Cody, Martha Cody, Eliza Alice Cody Myers, Mary Hannah Cody Decker, and Helen Cody Wetmore. Buffalo Bill’s dad was Isaac Cody and his mom was Mary Ann Bonsell Laycock. Buffalo Bill had a tough childhood and became a star as he became an adult. Buffalo Bill moved to Kansas when he was young with his sisters and brothers. His dad was anti-slavery
Words: 810 - Pages: 4
Y2K- Some believed that all computers would crash when the year 2000 came. This fear came as a result of the problems that computers had with storing dates correctly. This resulted in companies across the globe working to fix this bug. Bill Clinton is President- Bill Clinton’s served as the 42nd President of the United States. His term began in 1993 and ended in 2001. He was a very influential and important President because of his policies and actions. Don’t Ask Don’t Tell- Ask Don’t Tell was the
Words: 1038 - Pages: 5
The case is intended to provide an introduction to the Modigliani-Miller capital structure irrelevance propositions and the concept of debt tax shields. With the background of a pizza company, the case provides an engaging context to discuss the “pizza graphs” that are commonly used in corporate finance curriculum to illustrate the wealth effects of capital structure decisions. Objectives: * Introduce the Modigliani-Miller intuition of capital structure irrelevance; * Establish how
Words: 688 - Pages: 3
Persistence and Cross-Section Of Corporate Capital Structure in Indonesia Angelia A. Ananda Clinton M. Yosua Fahressi Fahalmesta Fariz Muhamad Nanda R. Aditya Rio Nugroho Oktober 2013 1. Angelia.ananda@student.ssb.ac.id 2. Clinton.josua@student.ssb.ac.id 3. Fahressi.fahalmesta@student.ssb.ac.id 4. Fariz.muhamad@student.ssb.ac.id 5. Nanda.aditya@student.ssb.ac.id 6. Rio.nugroho@student.ssb.ac.id Abstract Introduction Capital Structure is a factor which essentially
Words: 2461 - Pages: 10
Capital Structure – Chapt. 16 in text Does Capital Structure affect firm value? MM Proposition I (No Taxes): The value of a levered firm is equal to the value of an unlevered firm. VL = VU. i.e., Financing Choices do not add value. Why? Because you can create homemade leverage if you wish. • Unlevered Firm vs. a Levered Firm with the same assets. Recapitalization of Trans Am Corporation. Debt issue of $4,000,000 at 10% to buy back equity. Alternatively, you may view them as
Words: 1526 - Pages: 7
MARRIOTT Case Analysis 1. Are the four components of Marriott’s financial strategy consistent with its growth objective? Manage rather than own hotel assets – Although this strategy has a risk of contract expiration it makes easier to expand. Invest in projects that increase shareholder value – This component definitely stimulates growth, although may force management to take more risk. Optimize the use of debt in the capital structure – The concept of optimal capital structure stands for the
Words: 450 - Pages: 2
Session 1 Pg 441 2. A=1200 B=1900 Total = 3100 E(Rp)=Wta x E (RA) + Wtb x E(Rb) = 0.39 x 11 + 0.61 x 16 = 14.05% WTA=1200/3100 = 0.31 Wtb= 1- 0.39 = 0.61 E(Ra)=11% E(Rb)= 16% 7. E(Ra) = Pr x E(Rr)+ Pn x E(Rn)+ Pb x E(Rn) = 0.1 x 6%+ 0.6x 7 +0.3 X11 = 8.1% Variance = Pr x [Rr-E(Ra)] ² + Pnx [Rn – E(Ra)] ² +Pb x [Rb-E(Ra)] ² =0.1 x (6 – 8.1)² +0.6(7-81) ² + 0.3 x (11-8.1) ² = 3.69% = square root of 3.69 = 1.92% 11. βp =Wtq x βa + WtR x Br + Wtq X B…. = 0.25 x 0.6 +0.2
Words: 892 - Pages: 4
1. Calculation of WACC of a Multi-Division Corporation 2. Sources of Data and their limitation 3. Use of CAPM, Cost of Equity, Effect of Leverage on the Ce, WACC 4. Use of data for comparable to estimate asset betas for division-specific cost of capital 5. Biases and Limitations No financial modeling. In the previous years they would include WACC as part of case study 3 – Now it has been changed to 2 – without any actual financial statements. No excel modeling. Focused on how to address
Words: 877 - Pages: 4
DEAN FOODS I- Measuring Riskfree Rate Companies in the USA: Treasury Bill Rate analysis and government bond rate for long term analysis Rj=Rf+βRm-Rf β=0.91 Rf=10 year US Treasury rate the risk free rate=0.039 Rm= 0.028 1. Rj=0.039+0.910.028-0.039=0.02899 or 28.99 % II- Risk Regression A. How well or badly did your stock do, relative to the market, during the period of the regression? Intercept-Riskfree Raten1-β=Jensen'sAlpha Dean Food: Monthly: -0.004-0
Words: 582 - Pages: 3
rate of interest because of the tax savings. Studies suggest, however, that most companies have less leverage than this theory would suggest is optimal. (Learn more about corporate tax liability in How Big Corporations Avoid Big Tax Bills and Highest Corporate Tax Bills By Sector.) In comparing the two theories, the main difference between them is the potential benefit from debt in a capital structure, which comes from the tax benefit of the interest payments. Since the MM capital-structure irrelevance
Words: 352 - Pages: 2
