Groupe Ariel S.A: Parity Conditions and Cross-Border Valuation Abstract This case discusses Cross-Border valuation of projects. This kind of analysis is common for companies that are operating in many countries. Groupe Ariel is one such company that is considering investing in a project in its own subsidiary in Mexico. The company manufactures and sells printers, copiers and other document production equipment in many countries. As far as, expansion into new markets is concerned, company is very
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CIMSPA Case-Study Corporate Finance - SS 2010/11 Group 41 18-04-2010 Filipa Reis nº 9485 Manuel Abegão nº 8952 David Bianchi nº 513 Ângela Fénix nº 9421 José Benjamim nº 10369 Índice Introdução ................................................................................................................................... 3 Question 1 ................................................................................................................................... 3 Operational Cash-Flows
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UNIVERSITY OF WASHINGTON Graduate School of Business Administration Finance 553 CAPITAL INVESTMENT PLANNING Winter 2003 Professor Robert C. (Rocky) Higgins 306 Mackenzie Hall Tel: 543-4379 E-mail: rhiggins@u.washington.edu Homepage: http://us.badm.washington.edu/higgins/ (From here you’re one click from the class page) Office Hours: M, W: 10:30 – 12:00 COURSE OBJECTIVE Capital Investment Planning is a case course examining corporate investment decisions and related issues in financial
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Case 12 “Best practices “in Estimating the Cost of Capital The Cost of Capital The purpose of this case is to present evidence on how some of the most financially sophisticated companies and financial advisers estimate capital costs. This evidence is valuable in several respects. First, it identifies the most important ambiguities in the application of cost-of-capital theory, setting the stage for productive debate and research on their resolution. Second, it helps interested companies benchmark
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the case is from a privately-owned company in the US, it serves as an illustrative example on how we compute NPV, IRR, payback period, and profitability index in practice. This procedure could be applied (with appropriate adjustments) to other investment decision making by other forms of organizations, including households, publicly-traded companies, not-for-profit organizations, or governments, both in the US and elsewhere. Instruction 1. Read “New Heritage Doll Company: Capital Budgeting” case
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PLANNING CHAPTER REVIEW WHAT IS BUDGETING? • budgeting defines the planning and forecasting of future business operations in quantitative terms • establishes objectives for revenue inflows and cost outflows • provides guidelines for future operations • serves as a basis for performance appraisal DESCRIPTION OF BUDGETING Budgeting and Planning and Control 1. A budget is a plan of action expressed in financial terms. 2. Budgeting is a planning and control tool used by
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STUDY NOTES FOR GFOA BUDGETING EXAM A. SOURCE: LOCAL GOVERNMENT FINANCE – CONCEPTS & PRACTICES Chapter 4 – Operating Budgets: A budget can be a process, a document, an accounting ledger, a plan, or a system. Local gov’t budgeting process unique – product of geographical, historical, economic, political and social factors peculiar to that jurisdiction. Budgeting is a unified series of steps to line and implement four functions: ❑ policy development – as policy instrument
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8115, Syllabus, Aderhold Room 204, 4:30-7pm, Wednesday, Spring, 2010 MANAGEMENT ACCOUNTING This course introduces you to a select set of topics on managerial decision-making and control, including basic cost concepts, inventory process systems, budgeting, performance measures, segments and transfer pricing. We will examine the current practices of these elements of managerial control in decentralized business organizations and conceptual issues related to designing effective managerial decision-making
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Question 1 Net present value computation is a financial budgeting technique used to enable assessment of proposed investments. It is alternatively referred to as the discounted cash flow technique. Specifically, it refers to the difference between the present value cash outflows and that of cash inflows that would result from making a given investment. This investment could be an expansion or purchase of a new plant, purchase of new machinery and addition of assets. In order to accept or reject
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does sales mix affect the contribution margin? 29. Definition of mos 30. How to compute of mos? 31. Usefullness of (mos) 32. Can (mos) be negative? BUDGETING 1. What is definition of budget? 2. What is purpose of budgeting? 3. What are the objectives of budgeting? 4. What are the advantages
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