CORPORATE FINANCE COURSE CORPORATE FINANCE 2.1 Working Capital Management Sept. 2014 Ir Frank W. van den Berg mba Vrije Universiteit, Amsterdam ALYX Financial Consultancy bv, Aerdenhout FWvdB/2014 1 OUTLINE CORPORATE FINANCE FWvdB/2014 • Basics & Guiding principles • Time value of money + Capital Budgeting • Valuation of CF + Bonds • Valuation of shares (+ co.’s) • Financial Analysis (Ratios) • Financial Planning (EFN) • à Working Cap. Mgt. (A/R,
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believe that the riskiness of Star river Electronics have gone up. The financial forecasts for 2002 and 2003 were done using the percentage of sales method. We felt that 1998 and 1999 were not a fair representation of Star River Electronics actual finances since that was before the increased capacity so we used 2000 and 2001 to forecast ahead. The addition to debt in 2002 and 2003 were $40,088 and $58,407, respectively. An increasing addition to debt suggests that they will not be able to pay
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Research & Collection of information on EY History of the company Origins of EY Switzerland: * Founded in 1917 in Basel as "Verwaltungs-, Revisions- und Treuhand AG". * The idea of former the company came from Basler Handelsbank, which was the company owner * EY helped the bank to gain more exact information about the credit standing of their clients * Renamed Allgemeine Treuhand AG" (ATAG) – a name which shaped the Swiss auditing and advisory services industry throughout the
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projects, namely a Casino / Resort hotel complex with a projected budget of $600M. The various methods described include the analysis of capital valuations modeling with respect to the cost of various debt and equity measurements available. Long-term finance alternatives are presented, as are the different sources of capital available to organizations. The paper concludes with a look at various cash management techniques needed by the Casino / Resort for operating as well as the various methods of short-term
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I.INTRODUCTION II. THE SOURCES OF FINANCE Money is very important to the business. The sources of finance can get by many ways from Government aid, business owners, others way of borrowing and borrowing from the bank. With my company, the director can borrow £250000 from the bank or his acquaintances and he can maintain company by his money. When you take out a bank loan, you have complete control over what you do with the money. Paying back the loan also is responsibility, and failure to
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Management, Management Economics and Finance, Marketing Management and Real Estate and Housing majors. | TRANSFER CREDITS University of Guelph- BCom Brock University- BAcc,BBA Entry Credential | Minimum Admission Average * | Transfer credits awarded ** | Notes | 2-year diploma | B- | 3.0-5.0 Credits | Honours degrees are comprised of 20.0 credits, three-year pass degrees are 15.0 credits | University of Waterloo- Bachelors in accounting and Finance Management If you’re applying from
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Panera breads business model is, “to provide a meal and dining environment of sufficient high quality that customers would gladly pay for that quality – at a price that would also make the company financially successful” (Panera Bread Case). Through Panera Bread’s business model one can see that they took the marketing technique of higher quality for slightly higher prices. Panera bread differentiated itself from many competitors through its superior quality and welcoming environment. This business
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Marriott Case Study 1)What is the weighted average cost of capital for Marriott? The weighted average cost of capital for Marriott is 11.64%. .4(cost of equity) + .6(cost of debt)(1- tax) Tax = Income tax/Income before tax = 175.9/398.9 = 44% Cost of debt = .5(.0895) + .4(.0872) + .25(.069) + .5(.011) + .4(.014) +.25(.018) = 11.25% B = 1.1 when d/e = .41 target d/e is .6 so.. B(a) = B(e) / (1 + (1-tax) D/E) = 1.11 / (1+.56(2499/3596)) = .80 B = .8 * (1+.56(5394/3596)) = 1.47
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Part 1: Present Value Problems Complete the following problems: 1.Suppose you invest $2,500 in an account bearing interest at the rate of 14% per year. What will the future value of your investment in six years? 2.Your best friend won the Wheel of Fortune in Las Vegas and has offered to give you $10,000 in five years, after he has collected his first million dollars. If you consider that if you had the money in your hand today, you would be able to get 12% annual interest, what is the present
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2. The purpose of the analysis was to evaluate and compare the financial statements of Magna Intl, and Linamar. The emphasis was to be able to identify between the both which is superior to the other. Comparing the gross and net margins between the two companies, Linamar has a slightly higher margin in year end which is a good indicator that the company was in good financial standing in comparison to Magna Intl. In terms of ratios comparing both companies together Linamar with a 1.13 year end quick
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