today’s increasingly global marketplace, many investment projects, corporate acquisitions and mergers have important international components. The importance of cross-border valuation methods have been underscored by trends toward the relaxation of capital controls, European economic integration, and, since the early 1990s, the opening and growth of Eastern European, Russian, Asian and Latin American markets. Cross-border acquisitions have been a particularly prevalent form of investment since 1980
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for planning and preparing the budget; * what are the basic steps; * what are the typical weaknesses in procedures and how can these be overcome; and * how can changes in budget plans be programmed and targeted? Answers to these questions are set out in the subsections below. Budget planning and preparation are (or should be) at the heart of good public expenditure management. To be fully effective, public expenditure management systems require four forms of fiscal and financial
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Chapter 1: Introduction Managerial accounting: decision making and control The internal accounting system, an important component of a firm’s information system, includes budgets, data on the costs of each product and current inventory and periodic financial reports. Internal accounting systems serve two purposes: v Provide some of the knowledge necessary for planning and decision making; v Help motivate and monitor people in organizations (control). The most basic control use of accounting is to
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available at: http://ssrn.com/abstract=1764024 The WACC Fallacy: The Real Effects of Using a Unique Discount Rate Abstract We document investment distortions induced by the use of a single discount rate within firms. According to textbook capital budgeting, firms should value any project using a discount rate determined by the risk characteristics of the project. If they use a unique company-wide discount rate, they overinvest (resp. underinvest) in divisions with a market beta higher (resp. lower)
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Chapter 16 Discussion Questions 1. In the early 1970s the average Canadian industrial corporation had its interest covered almost six times. By 1991, the ratio had slipped below 1, but by 2000 had rebounded to 3 times, slipping again more recently. 2. The bond agreement specifies such basic items as the par value, the coupon rate, and the maturity date. 3. The bond agreement covers a limited number of items, whereas the bond indenture is a supplement that often contains over
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|Type/Task |Status | | | | |(re: 15/e) | |Questions: | | | | |3-1 |Distinguishing characteristics of fund-based and government-wide |Identify
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Shapiro: Chapter 2: Capital-Budgeting Principles and Techniques QUESTIONS 1. a. What is the relationship between accounting income and economic profit? Answer: Accounting income is calculated by taking revenues and subtracting all cash and non-cash expenses (such as depreciation). Accounting income also often recognizes losses for tax purposes as well, even though the economic loss may have taken place at another time. Economic profit is the sum of the present values of all the cash
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The Hewlett-Packard 10-B II and Texas Instruments BA II Plus are popular choices. The HP-12C is my personal choice mostly because it has stood the test of time. Beyond your operating manual, we will support each of these calculators if you have questions. CLASS ATTENDANCE AND WEBSITE: One of the best things about teaching and learning is the interaction between us. That can only be accomplished when you attend. I expect you to attend class and use a name tent. Also important to our class is
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11/04/2010 Chapter 16. Mini Case for Working Capital Management Dan Barnes, financial manager of Ski Equipment Inc. (SKI), is excited, but apprehensive. The company's founder recently sold his 51% controlling block of stock to Kent Koren, who is a big fan of EVA (Economic Value Added). EVA is found by taking the net operating profit after-tax (NOPAT) and then subtracting the dollar cost of all the capital the firm uses:
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ACKNOWLEDGEMENTS First and foremost I would like to thank the Lord Jesus Christ my Lord and Savior for blessing me with an attachment at Econet Wireless. It is only through Him that I have reached this far in my quest for success and knowledge. Secondly I would like thank my dear mother and sister for their unwavering support in my educational endeavors. If it was not for their blessings and guidance I would not have reached where I am this very day. I would also like to express my heartfelt
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