To: Janet Mortensen, CFO From: Senior Financial Analyst Division Date: October 7, 2013 Re: Midland Energy Resources Inc. Weighted Average Cost of Capital Midland Energy Resources Inc. is a publicly traded company that primarily deals in the energy industry. The company itself is divided into three major operational divisions, two of which that is concerning to the company include: Oil and Gas Exploration and Production (E&P) and Refining and Marketing (R&M). The Petrochemicals division will not be
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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 the
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friends, and neighbors. Today, businesses have evolved into “secondary groups” in an effort to reach goals more efficiently. Within formal organizations, many structures exist. In this paper, we will contrast a “conventional bureaucratic organizational structure” against a “flexible organizational structure”. A “flexible organizational structure” consists of a CEO (Chief Executive Officer), senior management, and a variety of different
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company for their strategy to make profit to their firms. Financial strategy also will influence the capital structure. The theory of Capital structure is closely related to the firm’s cost of capital. It is one of the effective tools of management to manage the cost of capital. Capital structure is the mix of the long-term sources of funds used by the firm. The primary objective of capital structure decisions is to maximize the market value of the firm or achieving the maximization of shareholders
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ORGANISATIONAL CONTEXT When I entered employment with FreightQ the company’s organisational structure had labour divided according to the products it transported. Due to the large demand for the transportation of a particular product (coal) support was provided by means of a parallel division. This supporting division, entitled National Customer Strategy (NCS), focused on retaining and attracting new coal customers. The NCS division identified a need to provide customers with complete supply
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11/3/2008 FIN720 | Baitshepi Tebogo| 9302747|MBA | term paper | CAPITAL STRUCTURE AND DIVIDEND POLICY DISCUSSION: How does Standard Chartered Bank Botswana contribute to this discussion? | TABLE OF CONTENTS Abstract 3 Historical Background 4 Literature Review 6 Research Objectives 21 Methodology 22 Challenges 23 Methods 24 Data Analysis 25 Conclusion and Recommendations 27 References
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| Valuation of Companies in the Hospital Industry in India | | | September, 2015 | Group 9 – Section B | | Group Members * Abhijnan Dasgupta (14P181) * Aditya Thangeda (14P183) * Apurba Mukherjee (14P189) * Nikhil Sharma (14P210) * Supreet S (14P232) | Table of Contents 1 Overview of Hospital Industry in India 2 1.1 Introduction 2 1.2 Market Size 2 1.3 Growth drivers for healthcare industry 3 1.3.1 Rising GDP Per Capita 3 1.3.2 Favourable Demographics 4 1.3.3 Disease
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Organizational Effectiveness To be effective and achieve its goals, an organization must successfully respond to environmental factors. How can the effectiveness of an organization be measured? Various models of determining organizational effectiveness exist because organizations face different environments, they produce different products, their organizational members are made up of different kinds of people, and the organizations are at different stages of development. Each model is most useful
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Mechanistic vs. Organic Structures Vance Conyers Organizational Theory 360A 28 September 2012 Organization structure is “The formal system of task and authority relationships that control how people coordinate their actions and use resources to achieve goals”. (Jones 8) The structure that an organization forms can determine its ultimate success of failure. It sets the foundation for how the organization will function, make decisions, and respond to change. The two types of structures an organization
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1 30% 1,06 50% 1,1 70% 1,15 Debt to Capital = total debt / net worth Higher DtC ratio means higher risk 0% 0,009 30% 0,428 50% 0,99 70% 2,33 3. How much potential value, if any, can AHP create for its shareholders at each of the three proposed levels of debt? EPS goes up as % of debt goes up ($3.18 - $3.49) 0% $3.18 30% $3.33 50% $3.41 70% $3.49 Dividends rise 0% $1.90 30% $2.00 50% $2.04 70% $2.10 4. What capital structure would you recommend as appropriate for
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