UC Berkeley - Haas School of Business Corporate Finance, EWMBA 231 Spring 2016 Prof. Thomas M. Mertens Assignment 1 Saturday, January 30 Case: Wilson Lumber Company (available on study.net) Readings: Berk and DeMarzo ch. 26-27, Higgins ch. 2-4 Questions: Your job is to evaluate Mr. Wilson’s loan application for the Northup Bank, and ultimately, to decide whether or not to grant a loan. To start with, Mr. Dodge needs a memo from you describing Wilson’s business, the likely reason(s) for
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------------------------------------------------- Polaroid Corporation, 1996 ------------------------------------------------- Polaroid Corporation, 1996 Prof. Ragupathy M B FINANCE – II Submitted by: Nidhi Kanojia 2011PGP749 Section B Prof. Ragupathy M B FINANCE – II Submitted by: Nidhi Kanojia 2011PGP749 Section B Current Financial issues in raising capital Ralph Norwood has just recently been appointed treasurer of Polaroid. Faced with notes outstanding of $150 million which will mature
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Midland Energy Resources, Inc.: Cost of Capital Analysis TABLE OF CONTENTS I. EXECUTIVE SUMMARY ........................................................................................ 2 II. COMPONENT ESTIMATIONS ............................................................................... 2 1. Effective Tax Rate - t ............................................................................................. 2 2. Capital Structure – D/E ..............................................
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Real Life Situation: My real life financial situation is similar to many recent college graduates. I have a mountain of debt and very little assets to show for it. Right off the back my required rate of return is one that could easily be measured against student loan debt. I know what the interest rates are on those so accounting for the life span of the loan I was able to calculate what rate of return would be needed to go with an investment as opposed to just paying off current debts. On top
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likely financed with debt as their debt/equity and debt/capital ratios all had a significant jump in 2000. Linked with declining sales in CD-ROM’s and an increasing amount of debt; one could 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
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a. What is the firm’s gain or loss at sales of 8,000 watches? 18,000 watches? b. What is the breakeven point? Illustrate with a graph. Financial risk is the additional risk placed on common stock holders as a result of the decision to finance with debt. EXAMPLE - Start a business with start up capital of $200,000. (All Equity) Scenario 1 (Capital Structure) EBIT $50,000 Debt 0 Taxes (40%) 20,000 Equity
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Investment Management Long Term Capital Management HBS Case Questions 1. Analyze different trading strategies of LTCM Answer: LTCM engaged in primarily in convergence and relative value strategies. Relative value strategy : It is a spread trade and it involves two assets whose prices or yields tend to converge with time . it involves long and short positions of similar instruments. This often happens when a company
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Part 1: Project Objectives and Overall Research Approach For my Research and Analysis Project for BSc (Hons) in Applied Accounting of Oxford Brookes University, I will do an analysis of the financial and business performance of F J Benjamin Holdings Ltd (FJB) for the period of three years, from 1 July 2006 to 30 June 2009. 1.1 Reasons for Choosing the Topic Financial and business analysis is an important part of evaluating a business’ performance and its ability to survive. In particular
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A Longitudinal Study of the Cause and Consequences of Changes in Diversification in the U.S. Pharmaceutical Industry 1977-1986 Author(s): Charles W. L. Hill and Gary S. Hansen Reviewed work(s): Source: Strategic Management Journal, Vol. 12, No. 3 (Mar., 1991), pp. 187-199 Published by: Wiley-Blackwell Stable URL: http://www.jstor.org/stable/2486592 . Accessed: 16/09/2012 06:40 Your use of the JSTOR archive indicates your acceptance of the Terms & Conditions of Use, available at . http://www
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Question 3 Government around the world are becoming increasingly sensitive to the loss of revenue resulting from multinational companies moving into other jurisdictions, most particularly tax havens, to lower their overall rates of tax, what are some of the measures that can be adopted to prevent such revenue loses? A tax haven is a state or a country or territory where certain taxes are levied at a low rate or not at all while offering due process, good governance and a low corruption rate
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