advisable to pay off debts with high-interest rates rather than investing it and earn low interest rate or rate of return. You can compare and calculate the after-tax rate on your investments and debts, to be sure of whether you invest or pay off debt. If you are not using an interest-earning account for your investment, determine the investment’s after-tax return. You can either use the Annual Percentage Rate as the effective rate if possible or use the stated interest rate for your credit card
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Assignment #1—Description of Venture Entrepreneurship & Innovation July 17, 2011 1. Introduce the company and the product/service idea for the new venture. If you live in a highly industrialized city or region of the country that has many factories, some individuals do not even know what goes on inside these industries. This venture, Factory Tour Guides will be profitable for cities and/or regions. Factory tours will become extremely popular in the next decade, as more and more people are seeking
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An organization’s valuation can create very efficient planning and capital distribution making this an important step in the organization’s valuation. The short and long term investments of an organization affect the day to day decisions of management and it also affects the organization’s value. Because this affects the value of the organization it becomes extremely important to use appropriate and precise valuation methods in order to estimate business activities and or projects that can affect
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United States and Europe has crippled investments in both the US and Europe and the outlook are not encouraging. While a lot of western countries and domestic companies are struggling to increase their bottom line- a lot of companies in emerging countries are flourishing. Expanding our operations to the rest of the world- emerging markets like India, China and a host of countries in Africa will increase our bottom line by helping us to diversity our investment endeavors and Starting out- our primary
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Why EVA is better than ROI (ROCE, ROIC, RONA, ROA) and earnings, operating profit etc. Equity investors should earn on their capital a return far over risk-free interest rate in order to induce and maintain capital in the company Therefore earnings should always be judged against the capital used to produce these earnings Earnings can be easily increased simultaneously worsening the position of shareholders e.g. if more capital is poured into a company although the return on capital is 5% or less
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following theories suggests that firms seek to penetrate new markets over time? a. theory of comparative advantage. b. imperfect markets theory. c. product cycle theory. d. none of these. 6. Which of the following is an example of direct foreign investment? a. exporting to a country. b. establishing licensing arrangements in a country. c. purchasing existing companies in a country. d. investing directly (without brokers) in foreign stocks. 7. According to the text, a disadvantage of licensing is that:
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inability to improve profitability. Their fixed asset turnover and total asset turnover ratios are down. These are two approaches to assess management’s effectiveness in generating sales from investment of assets. The fact that these ratios are lower that prior year means that more investment is required in the generation of sales. The gross profit margin, operating profit margin, and net profit margin, represent the firm’s ability to translate sales dollars into profits. Although
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End of Year: | 0 | 1 | 2 | 3 | 4 | | | | | | | | I. | Investment outlay | | | | | | | Equipment cost | ($200) | | | | | | Installation
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different from the concept of saving as saving refers to the passive use of the money with the safety of principal being the major requirement, on the other hand, investing refers to proactive and a bit aggressive use of the money to earn return on investment. It is never too early to start investing in things which help to earn profit, and by earning that profit it will be easier to do if one gets an early start in life. As a young investor i can remember quite vividly how easy it was for me to invest
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10-year spreads generally was only a few basis points. The pricing difference throws bond-market convention on its head. All things being equal, long-term paper normally commands higher spreads to reflect the greater risk associated with holding investments longer. That started to change in the summer of 2007, when the credit crunch caused bond trading to slow. The benchmark classes of 10-year bonds started trading at slightly tighter spreads than 5-year paper because their larger supply offered more
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