Case Study 15-10 a. As a general rule, the impact of capital structure on value depends upon the effect of debt on weighted Average cost of capital (WACC) and Free Cash Flow (FCF). Debt owners have priority on cash flows over stockholder as their fixed claim amplifies risk of stockholder residual claim (Capital Structure Decisions 2010). As such cost of stock (rs) increases. A company can subtract interest expenses which reduce the amount of taxes paid and in turn allows greater cash flow for
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this being said, it is unclear whether the Board has the power to drive managerial decision making processes. For example, one of the functions of a “good” Board is to punish and reward managers with respect to how well they respect shareholder interests. Apple’s Board, while diversified and experienced, gives no indication of whether or not there is a process to punish the executives for making poor or selfish decisions. Moreover, there is no indication of the independence of the Audit and Compensation
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1,2,3,5,6,7,8, 13 & 16 (Chapter 11 on Leading and Leadership Development presented on 07/03 ) • Chapter 1 Overview • Work in the new economy is increasingly knowledge based, and people, with their capacity to bring valuable intellectual capital to the workplace, are the ultimate foundation of organizational performance. Challenges of working in the new economy • Today, individual and organizational success must be forged within workplaces that are constantly reinventing themselves.
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...........11 a. Structure of BBA Programme..……………....12 b. Layout for BBA Programme..........................13 c. Semester-wise Breakup for BBA…...............14 3. Bachelor of Business Studies (BBS)......................15 4. MBA Programme....................................................16 a. Structure of MBA Programme........................17 b. Semester-wise Breakup for MBA...................19 5. MS in Management Sciences................................20 a. Structure of MS Programme..
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With the varied work schedules of many students, fixed office hours are generally inconvenient for students. As a result, I have set office hours and I have provided an “important telephone” number. If you would like to meet with me, let me know and we will arrange a mutually satisfactory time. For some students, telephone “meetings” are easier. To this end, you may call me at reasonable hours (i.e., before 10:00 p.m.). NOTE: It is the student’s responsibility to read, understand and abide by
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the two critical issues to be considered under investment decisions? 12. Define rate of return. 13. The most important decision made by a finance manager is ________. Answers to Self Assessment Questions 1. Liberalisation and globalisation of Indian economy 2.procurement of funds 3. Profit maximisation. 4. Wealth maximisation 5. Wealth maximisation 6. Profit Maximisation and Wealth Maximisation 7. Investment decisions. 8. Financing decisions 9. Liquidity 10. Treasurers 11. The two critical issues are
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summary Starting-up a business required choices existing that should be considered, such understanding the category of structure under which the company will operate. As a new business owner, it is advantages to have a solid understanding of financial aspects of running a business and the most important financial duty that define the success or failure of a business are: making profit, cash flow and financial health determining and monitoring
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and pretzels to their menu in order to expand their product offering. Retrenchment: As a form of survival, Jamba was forced to close their least profitable stores. Related Diversification: Jamba’s licensing agreement with Whole Foods and franchise structure diversifies Jamba’s risk and consumer contact. Competitive: Jamba’s focus on broad differentiation by using the freshest produce and producing the highest quality smoothies separates themselves from the industry. Competencies and Deficiencies
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is facing relate to the division of responsibilities between a functional and a divisional structure, and how best to achieve an effective relationship between these areas. Manager talent is another concern. Managers are coming from a centralized structure, and some are not trained to handle divisional responsibility, although they have been tasked with this responsibility. Consequently, some of the decisions made by the divisional managers are questionable from the perspective of the owners. Corporate
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Times Company Digital, was created, which reported directly to corporate management. The new division included NYTimes.com, Boston.com, NYToday.com, GolfDigest.com, WineToday.com, and Abuzz. The new division had a decentralized structure and different organizational structures but still with similar roles as a common newspaper. The different websites were combined in the new organization to be able to learn from each other. A lot of effort was then put into creating a culture of team-work and openness
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