of the registrant under any of the following provisions: x Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230-425) ¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) ¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) ¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Item 5.02. Departure of Directors
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(NPV) analysis. (Due by midnight on Thursday) Different tools used in capital budgeting include NPV, discounted-cash-flow analysis, IRR, and MIRR. NPV is used to evaluate capital budgeting projects by determining the difference between the market value of an item and what it costs. 3. What is the weighted average cost of capital (WACC)? How is it calculated? What are business investment rules? (Due by midnight on Saturday) WACC is the average costs of financing sources either debt or equity. The WACC
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Ensuring a project has a positive impact on the earnings per share over its entire economic life is therefore critical. Payback is the number of years necessary for free cash flow of a project to amortize the initial project outlay. The specified time period for which payback is to be completed by is six years. The payback rule is reasonably simple and has a number of pitfalls in practise because it ignores the project’s cost of capital and time value of
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published in 1494. However, double-entry bookkeeping was first used in the 1100s to help merchants monitor economic performance of their trading ships in the Mediterranean. Since those rules are nearly identical to the ones we now use, it is safe to say that managers and others find accounting useful, even if the rules are far from perfect. To
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Network I is better. Before finalize the decision to select between Network I and Network II, there are three steps: 1. The forecasted net cash flow derived for both Network 2. Techniques use to evaluate Networks 3. Final decision to accept Network I 1. Forecasting cash flow for both Networks As attached in Appendix I, to get free cash flow for these two projects, there are 3 stages: 2.1 Calculation of Cost of capital “Capital asset pricing model (CAPM) gives a condition
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a. Why is corporate finance important to all managers? Answer: Corporate finance is important to all managers because it helps managers decide how to finance an organization . It teaches managers how fix financial problems, evaluate proposals, and determine which projects are financially beneficial to a company and its investors. b. Describe the organizational forms a company might have as it evolves from a start-up to a major corporation. List the advantages and disadvantages of each
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Accounting standards are the product of modernization which initially becomes the rules and regulations to govern the way in preparing financial statements. In these days, International Financial Reporting Standards (IFRS) are widely implemented, yet the underlying accounting practices are still unstandardized due to various factors of economic and cultural differences, just to name a few. In 2010, proposals were issued in Australia and New Zealand which aim to harmonize the standards as adopted
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Financial Statements and the Environments of Financial Reporting Accounting: The Language of Business | Relationships Among Financial Statements | Classifications in a Balance Sheet | Income Statement, Statement of Retained Earnings, and Statement of Cash Flows | GAAP and Key Accounting Principles | Balancing the Accounting Equation Accounting: The Language of Business Back to Top Do Not Underestimate the Power of Accounting! I vividly recall my first experience driving in a foreign country. The road
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M.I.T. Sloan School of Management Spring 1999 15.415 First Half Summary Present Values • Basic Idea: We should discount future cash flows. The appropriate discount rate is the opportunity cost of capital. • Net Present Value: The net present value of a stream of yearly cash flows is N P V = C0 + C1 C2 Cn + + ··· + , 2 1 + r1 (1 + r2 ) (1 + rn )n where rn is the n year discount rate. • Monthly Rate: The monthly rate, x, is x = (1 + EAR) 12 − 1, where EAR is the effective annual rate. The EAR
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AN APPRAISAL OF CAPITAL BUDGETING TECHNIQUES (A CASE STUDY OF FORTHRIGHT SECURITIES AND INVESTMENT LIMITED, MARINA, LAGOS) BY OLOJOTUYI OLUFEMI O. FPA/AC/09/3-0101 BEING A PROJECT REPORT SUBMITTED TO THE DEPARTMENT OF ACCOUNTANCY SCHOOL OF BUSINESS STUDIES, THE FEDERAL POLYTECHNIC, ADO EKITI EKITI STATE IN PARTIAL FULFILLMENT OF REQUIREMENTS FOR THE AWARD OF HIGHER NATIONAL DIPLOMA IN ACCOUNTANCY DECEMBER, 2011. CERTIFICATION This
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