its customers and clients own their tomorrows through: * financial planning and advice * superannuation, retirement income and other investment products for individuals * superannuation services for business and employer-sponsored schemes * income protection, disability, general and life insurance * selected banking products * investment including shares fixed interest, property and infrastructure About AMP AMP has been helping Australians take control of their financial futures
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Executive Summary Midland Energy Resources is a leading global energy developer dedicated to providing advanced power systems and energy services around the world. Midland Energy Resources has three divisions Exploration & Production, Refining & Marketing, and Petrochemicals. They have been incorporated more than 120 years previously and they have 80,000 employees in 2007. Janet Mortensen, the senior vice president of project finance for Midland Energy Resources must determine the weighted
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then it can be include in when using this method to calculate the values of company per share as the assets can be sold. The data use to perform the valuation are also easily available as it is based on the firm, firms that have heavy tangible investments. Year | 2006 | 2007 | 2008 | 2009 | 2010 | | RM'000 | RM'000 | RM'000 | RM'000 | RM'000 | Non-current assets | | 79,886 | | 66,240 | | 74,546 | | 88,563 | | 81,042 | Current assets | | 109,392 | | 161,017 | | 186,423 | |
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1. Formula for cost of capital: WACC = wdrd(1-T) + wpsrps + wsrs The cost of capital is important to calculate for any company that is making a decision on accepting or rejecting a project. If the expected rate of return on a project exceeds the calculated cost of capital, then the company should move forward with the project. The cost of capital is particularly important for Encana because they are expecting to grow in size. Calculating the WACC will be necessary for use in their capital
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Tesca Works Successful research and capital are required to develop new products. A detailed analysis of the proposed refrigerator project will be thoroughly discussed in the following financial plan for the development and production of the refrigerator. You will find useful information for the cost of production, financing, warranty costs, and cost of capital. To begin, great consideration should be given to energy costs because it affects buyer power. Companies are subject to extensive state
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Do you think the current environment for securities provides enough return for the level of risk you believe is inherent in the system over the next five years? In my opinion there is a significant risk in the environment of investments compare to the level of return we may get from our money through the next five years, some of the reasons causing this insecurity is due to economical factors that are affecting the economical system in the world. No matter where you are in the world trying
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Analysis of the emerging market in China Introduction Nowadays, with the financial crisis sweeping the globe, the emerging market is to be concerned by more and more countries. China as one of BRICs country has an impact on economic, trade and political in the world. This paper will talk about the emerging market--China from some economic factors, social factors and political factors, also analysis why China play an important role in the world. And what is the relationship between China and
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Economic book value of the capital employed in the firm r = Return on capital = NOPAT / CAPITAL The goal of Financial Management is to maximize the shareholders’ value. The shareholders’ wealth is measured by the returns they receive on their investment. Returns are in two parts, first in the form of dividends and the second in the form of capital appreciation reflected in market value shares, of which market value is the dominant part. The share prices are influenced by the extent to which the
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1284762 Problem Set #1 1) Own investment = 5,000 dollars, additional fund from borrowing = 5,000 dollars. The total fund invested is 5,000 + 5,000 = 10,000. The current price is 50 dollars per share. 10,000 / 50 = 200 shares will be purchased. Interest rate is 8% = 0.08 x 5,000 = 400 dollars. A) Rate of return if the price goes up by 10%: 10,000 x 1.1 = 11,000 = (value of stocks - amount borrowed - interest payment - initial investment) / initial investment = 11,000 - 5,000 - 400 - 5,000 / 5
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Fordham University Graduate School of Business Administration FNGB 7421 Gautam Goswami Take Home Exam: (Due within 2 weeks – first week of July) Answer the following question from Investment Detective Case. Q1. If you have only $8 million for investment (i.e. 4 projects) and your WACC is between 9% and 11%, which projects should you choose and why? You need to justify your answer and show detailed analysis. Your assumptions must be pointed out and should be generally acceptable. (20
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