Overview Working capital management is critical to an organization’s ability to meet its short-term obligations. When proposing new projects or investment ideas for corporations, it is critical to consider working capital red flags such as excess credit use by the business or a low cash balance. Managing such issues early on can help corporations acquire … Read more
Process Evaluation Evaluate your process using 1 of the following: · Use the lean concept to find ways to eliminate waste and improve the process · SPC or Six Sigma to reduce defects or variances in the process <Write your evaluation here> Evaluation of Control Chart and Process Metrics Complete the following in Excel: · … Read more
A company’s strategic priorities must drive how capital allocations are made and the size of each unit’s operating budget. Using the NEC Danforth’s library resources search for recent (most recent five years) articles that discusses how a company has revised its pattern of resource allocation and divisional budgets to support new strategic initiatives. How do … Read more
1. Caspian Sea Drinks is considering buying the J-Mix 2000. It will allow them to make and sell more product. The machine cost $1.67 million and create incremental cash flows of $831,367.00 each year for the next five years. The cost of capital is 10.85%. What is the net present value of the J-Mix 2000? … Read more
Overview Managing and optimizing brand equity is one of the long-term goals of any organization and thus it is a joint responsibility of all the functional departments. Brand equity is the set of assets linked to the brand. These assets include brand awareness, brand loyalty, and brand associations. Appropriate alignment of key departments with … Read more
Overview Stakeholders are individuals or groups that have an active interest in an organization. Stakeholders and stakeholder groups typically include employees, vendors, communities, government agencies, customers, investors, and lenders. Different stakeholders have different interests, attitudes, and priorities. Effective communication ensures that they receive relevant information and develop positive attitudes to your organization in the … Read more
1. The risk-free rate is 1.53% and the market risk premium is 6.75%. A stock with a β of 0.88 just paid a dividend of $1.28. The dividend is expected to grow at 22.80% for three years and then grow at 4.10% forever. What is the value of the stock? 2.The risk-free rate is 3.67% … Read more
1.A stock just paid a dividend of $2.09. The dividend is expected to grow at 23.40% for two years and then grow at 4.52% thereafter. The required return on the stock is 12.66%. What is the value of the stock? 2.The risk-free rate is 2.28% and the market risk premium is 7.53%. A stock with … Read more
you should have at least five paragraphs for each question. The first five questions refer to the following scenario regarding Ken Allen at Bally Gears. Ken Allen, capital budgeting analyst for Bally Gears, Inc., has been asked to evaluate a proposal. The manager of the automotive division believes that replacing the robotics used on the … Read more
Questions (21-1) Define each of the following terms: Interest tax shields; value of tax shield Adjusted present value (APV) model Compressed adjusted present value (CAPV) model (21-2) Modigliani and Miller assumed that firms do not grow. How does positive growth change their conclusions about the value of the levered firm and its cost of capital? … Read more