environment is not good for UST because the government has the ongoing health concerns. Due to the high price of UST’s products, other companies selling low price tobacco threaten the market share of UST. 2. Rate the overall business risk The S&P rates UST’s long-term credit as A, and its short-term credit as A-1. However, the future of tobacco industry is unclear, and government may conduct some policy to control the tobacco industry’s growth due to health concerns. Therefore, the UST’s long-term
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Corporate Finance Fundamentals [FN1] Examination Blueprint 2010–2011 Purpose The Corporate Finance Fundamentals [FN1] examination has been constructed using an examination blueprint. The blueprint, also referred to as the test specifications, outlines the content areas covered on the examination and the weighting allotted to each content area. This document also lists the topics, the level of competence for each topic, and the related learning objectives. The learning objectives have been designed
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Macroeconomics A wide range of understanding about the macro-environment helps a company to maximize its position amongst the influences of the global economy. Economic, political, legal, technological, socio-cultural, international demand, supply impacts, and demographic trends are all factors that influence the macro-environment. The macro-environment is always changing, so the success of the business rides on their ability to adapt to these changes and forecast the macro economy better than their
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trade-off of restructuring the company’s capital structure. 2) Corporations routinely face decisions regarding new investments and must determine the best way to finance those investments. The method by which this financing occurs can have a significant impact on the overall value of the firm, therefore financing decisions must be made very carefully. Corporations finance new ventures either through debt or equity or some combination of the two. When choosing the optimal mix of these elements, firms must
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approach typically emphasizes fundamental analysis of individual company stocks, and is largely based on the belief that undervalued stocks will perform well regardless of the prospects for the industry or the broader economy. The major advantage of the top-down approach is that it provides a structured approach to incorporating the impact of economic and financial variables, at every level, in to analysis of a company’s stock. One would expect, for example, that prospects for a particular industry
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On one hand, they could be a major corporation that not only sells its own stock, but also owns shares in other companies. On the other hand, they could be a first time investor looking to exercise some extra money and see if they can turn a profit. Either way, the stock market can be a confusing and intimidating place. Every investor needs to have a basic understand of where the shares of stock are coming from and what exactly is involved. To help with this elementary understanding
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following assumptions: 1. There are no corporate taxes (this assumption has been removed later). 2. The firms use only 2 sources of financing namely perpetual debts ad equity shares 3. The firms pay 100% of the earnings as dividend. This means that the dividend pay-out ratio is 100% and there are no earnings that are retained by the firms. 4. The total assets are given which do not change and the investment decisions are assumed to be constant. 5. Business risk is constant over
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a September call option with an exercise price of 600p will have an exercise value of: A 0p B < 0p C > 0p D 7p exactly 2. For companies with unstable earnings A a dividend policy of stable growth in dividends means an unstable payout ratio B a dividend policy of stable growth in dividends means a stable payout ratio C a dividend policy of a stable payout ratio means volatile dividends per share through time D both A
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that will soon been expanding internationally. Target’s goal is to provide exceptional quality merchandise and fresh foods for affordable prices. Their “Expect more. Pay less.” slogan goes far beyond just purchasing in store and online. Target provides exceptional service to their customers, whom they call “guests”, and provides benefits such as quarterly dividends to their stockholders. In the fiscal year, 2010, Target opened 13 new stores and of these new stores, 10 were in new locations. It is Target’s
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ANNUAL REPORT 2009 CORPORATE PROFILE Le Château is a leading Canadian specialty retailer offering contemporary fashion apparel, accessories and JANUARY 30, 2010 JANUARY 31, 2009 STORES SQUARE FOOTAGE 352,214 319,762 117,321 128,768 35,575 28,083 16,200 19,332 9,203 3,480 1,029,938 17,591 STORES AND SQUARE FOOTAGE STORES SQUARE FOOTAGE 371,240 360,017 139,605 133,025 38,148 28,083 20,157 19,332 15,314 3,480 1,128,401 17,591 ONTARIO QUEBEC ALBERTA BRITISH COLUMBIA MANITOBA NOVA SCOTIA SASKATCHEWAN
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