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Capital Asset Pricing Model and Arbitrage Pricing

Words: 3670 Length: 11 Pages Document Type: Essay Paper #: 4448460

Capital Asset Pricing Model and Arbitrage Pricing Theory:

Capital Asset Pricing Model (CAPM) is an arithmetical theory that describes the relationship between risk and return in a balanced market. The Capital Assets Pricing Model was autonomously and simultaneously developed by William Sharpe, Jan Mossin, and John Litner. The researches of these founders were published in three different and highly respected journal articles between 1964 and 1966. Since its inception, the model has been used in various applications that range from public utility rates to corporate capital budgeting. However, the initial introduction of the model was characterized by suspicious view from the investment community. This was largely because CAPM apparently indicated that professional investment management was hugely a waste of time. Due to its implementation problems and shortcomings associated with its relation to Arbitrage Pricing Theory, Capital Asset Pricing Model has continued to face constant academic attacks.

Overview of Capital Asset…… [Read More]

References:

Banz, R.W (1981), 'The Relationship Between Return And Market Value of Common Stocks,'

Journal of Financial Economics, vol. 9, no. 1, pp. 3-18.

Cooper, R.A. & Cousins, J.K (n.d.), Capital Asset Pricing Model (CAPM), Reference for Business, viewed 11 January 2012,

Donovan, E. & Weinraub, H (2007), Capital Asset Pricing Model (CAPM) vs. Arbitrage Pricing
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Capital Project Results and Acceptability of the

Words: 2613 Length: 8 Pages Document Type: Essay Paper #: 9046436

Capital Project

esults and acceptability of the item for key stakeholders

Da Vinci is a lucrative product that has immense contributions to the delivery of health services in many health centres globally. The effectiveness of the product lies on its new entry into the modern market. Da Vinci production and use have enlightened the public and hospital fraternities on new approaches of managing surgery operations. The resultant effects that are going to be felt after using the product are more increasing and beneficial than using the old mechanisms. The innate objective of the tool will improve on delivery of surgery services in ways that are more safe, effective, and affordable to the public. Da Vinci was first introduced as a safe way of improving surgery operations in the hospitals. Moreover, the use of the product had not been made public. Now that the machine will be available in many health…… [Read More]

References

Athanasiou, T., Debas, H.T., & Darzi, A. (2009). Key topics in surgical research and methodology. Berlin: Springer.

Bahouth, M.N., Bahouth, M.N., Blum, K., & Simone, S. (2013). Transitioning into hospital-based practice: A guide for nurse practitioners and administrators. New York, NY:

Springer Pub. Co.

Gitman, L.J., & McDaniel, C.D. (2009). The future of business: The essentials. Mason, OH:
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Capital Requirement and Risk Behavior Arab African

Words: 12698 Length: 40 Pages Document Type: Case Study Paper #: 45533113

Capital Requirement and Risk ehavior

Arab African International ank

Midan ElSaray El Koubra, Garden City Caoro

The research will mainly dwell on the capital requirements and risk behavior of banks, more in particular the credit risk. The purpose of this research is to identify and analyze the relationship between capital requirements and the risk behavior of banks in Egypt

more in particular the Arab African International ank, which is the case study for this research. Secondly, the research will seek to investigate the impact of capital regulation on the banking behaviors and particularly on the levels of credit risk of banks operating in Egypt

The findings of the research show that there is negative relationship between capital requirement and banks' risk behavior; the findings also show there is empirical evidence to prove that capital regulations have a negative impact on credit risk of banks levels of credit risk of banks…… [Read More]

Bibliography

Aggarwal, R. And K. Jacques, (1998), a Simultaneous Equation Estimation of the Impact of Prompt Corrective Action on Bank Capital and Risk, New York, 12-23

Avery, R.B. And A.B. Berger, (1991), Risk-based capital and deposit insurance reform, Journal of Banking and Finance pp 847-874

Berger, A.N., Herring R.J. And Szego, G.P. (1995), the Role of Capital in Financial

Institutions, Journal of Banking and Finance pp 19, 393-430.
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Capital Structure Decision and Cost of Capital

Words: 768 Length: 2 Pages Document Type: Case Study Paper #: 19541340

Capital Structure Decision and Cost of Capital

My SLP Company of choice is Wal-Mart Stores. The other two companies I will be relying on for purposes of this discussion are Target Corp. And Costco Wholesale Corporation. Both companies happen to be in the same industry as Wal-Mart Stores. Most specifically, this text will compute the debt ratio and the debt-to-equity ratio of Wal-Mart Stores and discuss whether or not these ratios could be regarded too large or too small. Further, comparisons will be made between the debt-to-equity ratio of Wal-Mart Stores and that of its two competitors - Target and Costco.

The debt ratio in the words of Graham and Smart (2011, p. 44) is "a measure of the proportion of total assets financed by a firm's creditors." It is computed by dividing the total debt figure with the summation of equity and total liabilities. All the dollar figures below…… [Read More]

References

Borowski, A. (2010). Financial Management: The Role and Importance of Capital Markets and EMH. Norderstedt Germany: GRIN Verlag.

Graham, J. & Smart, S.B. (2011). Introduction to Corporate Finance (3rd ed.). Mason, OH: Cengage Learning.

Porter, G.A. & Norton, C.L. (2010). Financial Accounting: The Impact on Decision Makers (7th ed.). Mason, OH: Cengage Learning.

Quiry, P., Fur, Y.L., Salvi, A., Dallochio, M. & Vernimmen, P. (2011). Corporate Finance: Theory and Practice (3rd ed.). Chichester, West Sussex: John Wiley & Sons.
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Capital Budgeting Investment Appraisal or

Words: 344 Length: 1 Pages Document Type: Term Paper Paper #: 67368685

It would be difficult for the company to satisfy its shareholders with differing interests, but there is a solution-Net Present Value.

Using Net Present Value (NPV) as criteria to select projects assumes proficient capital markets. In other words, in order to work the company has to have access to whatever budget is needed to continue the positive Net Present Value projects. Sometimes there may also be capital ration and the concept of capital budgeting process becomes more and more complex.

Alternative Rules for Capital Budgeting

While NPV is the rule which maximizes value of shareholders, some companies use other strategies for their capital budgeting decisions. Common alternative strategies include:

Profitability Index

Internal Rate of Return (IPR)

Payback Period

Return on Book Value

Investment decisions made from the Profitability index and Internal Rate of Return methods agree with those of Net Present Value. Decisions made using the return on book value…… [Read More]

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Capital Structure Is an Important

Words: 4478 Length: 15 Pages Document Type: Research Proposal Paper #: 45674903



Although advertising costs can be substantial, it is essential that companies place significant amounts of funding into advertising. Such funding is necessary because it provides companies with a competitive advantage. According to Doraszelski & Markovich, (2007)

"Practitioners know very well the value of advertising to achieving their long-term market share and profitability goals. A survey of senior executives in 1999 reveals that 82.9% somewhat or strongly agree that good advertising can provide their company with an edge over the competition in the marketplace. Furthermore, 86.8% somewhat or strongly agree that advertising is a long-term investment that contributes to the financial growth and stability of their company (American Advertising Federation, 1999; Doraszelski & Markovich, 2007)."

The authors also explain that firms believe that advertising has the capacity to give them a sustainable competitive advantage over other firms (Doraszelski & Markovich, 2007). Nevertheless, dynamic models of advertising competition, assert that the opposite…… [Read More]

Works Cited

Bagwell, K. (2005) the Economic Analysis of Advertising.  http://ideas.repec.org/h/eee/indchp/3-28.html 

"Brand Value."  http://dictionary.bnet.com/definition/brand+value.html 

Doraszelski U., Markovich S. (2007). Advertising dynamics and competitive advantage. RAND Journal of Economics Vol. 38, No. 3, pp. 557 -- 592

Grullon G., Kanatas G. And Kumar P. 2006. The Impact of Capital Structure on Advertising Competition: An Empirical Study.
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Capital Structure There Are a

Words: 976 Length: 3 Pages Document Type: Essay Paper #: 50947748

The company finances foreign operations with debt from a number of different countries. It does this on the basis of the parent company's credit rating, which illustrates that the implicit understanding with respect to the parent company default guarantee of subsidiary debt holds across different debt markets (Stern & Chew, 2003, 394).

There are also times when the capital structure is determined more by strategic considerations than any other. Many firms operate foreign subsidiaries as joint ventures, for example, because this gives the firm greater access to foreign capital markets and usually reduces the country risk and market risk associated with the subsidiary, when compared to a greenfield subsidiary. There is evidence that firms using this tactic do so in part to reduce the costs associated with foreign market entry, including financing costs. Hennart's (1991, 483) study of Japanese subsidiaries in the United States showed that transaction costs played a…… [Read More]

Works Cited:

Desai, M.; Foley, C. & Hines, J. (2003). A multinational perspective on capital structure choice and internal capital markets. Harvard Business School. Retrieved February 11, 2011 from  http://www.people.hbs.edu/ffoley/capstructure.pdf 

Gropp, R. (2002). Local taxes and capital structure choice. International Tax and Public Finance. Vol. 9 (1) 51-71.

Hennart, J. (1991). The transaction costs theory of joint ventures: An empirical study of Japanese subsidiaries in the United States. Management Science. Vol. 37 (4).

Stern, J. & Chew, D. (2003). The revolution in corporate finance. Malden, MA: Blackwell Publishing.
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Capital Fall if Financial Markets Are No

Words: 680 Length: 2 Pages Document Type: Essay Paper #: 45468905

capital fall if financial markets are no longer segmented? What evidence is there of this effect?

Up until the mid-1940's markets where knows to be restrictive in cash flow movement, this in combination with tax and transactional barriers on ownership by foreign entities meant that equity markets were not developed. They were in fact marked with low liquidity, not enough regulation and inconsistent disclosures.

If capital markets are segmented, then investors can only invest domestically. This means that the market portfolio (M) in the CAPM formula would be the domestic portfolio instead of the world portfolio.

This equilibrium had banks, securities market and capital markets as the primary source of finance. The localized source of finance meant that domestic investors were they only players in the market with most shares, resulting in high cost of capital.

1970's brought on the liberalization of markets in the developed countries which resulted in…… [Read More]

REFERENCES

Basak, Suleman. "An intertemporal model of international capital market segmentation."

Journal of Financial and Quantitative Analysis 31 (1996) 161-188.

Bekaert, Geert and Campbell R. Harvey. "Time-varying world market integration."

Journal of Finance 50 (1995) 403-444.
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Capital Works Seeks to Explain the Venture

Words: 624 Length: 2 Pages Document Type: Essay Paper #: 28374355

Capital orks seeks to explain the venture capital industry, debunk myths and offer a view of what the role of venture capital is to the U.S. economy.

Zider begins by explaining that venture capital does not provide as much money to start-ups as is often considered to be the case. In general, venture capital goes to follow-on funding for projects that were originally developed by governments or corporations. Those latter bodies perform the innovation task, and venture capital comes in once the product/service has been developed somewhat and needs to be taken to market. Because of this, venture capital is short-term money, not long-term. The objective of the venture capitalist is to commercialize an idea and then exit either by taking the company public or selling to a larger company. Venture capitalists exist, Zider points out, because this segment of the capital markets is underserved by other players. In that…… [Read More]

Works Cited:

Zider, B. (1998). How venture capital works. Harvard Business Review. Nov-Dec 1998.
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Capital at Ameritrade Is One

Words: 1251 Length: 5 Pages Document Type: Term Paper Paper #: 56884754

Because Ameritrade's Initial public offering was in March of 1997, the time series is to short for estimating beta (August 1997), as the provided data will give inaccurate results. That's why in order to estimate beta for Ameritrade correctly we can refer to the finance data of the comparable companies. It means that we should choose companies, which have cash flows with similar risk indexes, as these companies will have same asset beta indexes. For running such test 14 different firms in 4 industries (investment services, Internet services, discount brokerage, internet) were chosen: A.G. Edwards, Bear Stearns, Lehman Brothers, MSDW, Paine Webber, . James, Merrill Lynch, Mecklemedia, Netscape, Yahoo, Charles Schwab, E*Trade, Quick & eilly, Waterhouse Investor Services.

We can use the following formula to calculate beta for the firms above:

In order to estimate reliable results we should choose firms, which specialize in brokerage services. Discount brokerage firms get…… [Read More]

References

Mitchell, Mark Stafford, Erik Cost of capital at Ameritrade, Harvard Business School April 26, 2001

Ameritrade, History

 http://www.tdameritrade.com/history.html 

Federal Government vs. Private Accounting
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Capital Decision-Making it Presently Little

Words: 1647 Length: 6 Pages Document Type: Research Paper Paper #: 48549268

" (Kinnunen, 2004) the work of Kaplan and Schroar (2003) states findings that the past performance is highly relative to capitals flows to private equity funds.

The work of Mishra, Kemmerer, and Shenoy entitled: "Managing Venture Capital Investment Decisions: A Knowledge-ased Approach" relates the building of a causal map of the investment decision through use of interviewing venture capitalists and then converting this information into a "causal ayes net" which are stated to be "especially suited for domains characterized by a high degree of uncertainty." (Mishra, Kemmerer, and Shenoy, 2001) This technique has also been utilized in developing artificial intelligence and even used "in medical diagnosis, modeling portfolio risk and return, and new product development..." And are based on "probability theory." (Mishra, Kemmerer, and Shenoy, 2001) This method is reported to be one that increases the likelihood of gaining an understanding of the decision-making process of Venture Capitalists (VCs) and…… [Read More]

Bibliography

Kaplan, S. & Schroar, a. 2003. Private Equity Performance: Returns, Persistence and Capital Flows. MIT Sloan Working Paper No. 4446-03; AFA 2004 San Diego Meetings.

Cochrane, John H. The Risk and Return of Venture Capital. Working paper, University of Chicago, 2001.

Kinnunen, Harri (2004) Institutional Investor's Decision Making Criteria for Investing in Venture Capital Funds. Frontiers of E-Business Research 2004. Online available at  http://www.ebrc.info/kuvat/695-709_04.pdf 

Patel, Pankaj and D'Souza, Rodney (2008) Uncovering Knowledge Structures of Venture Capital Investment Decision Making. A Working Paper for SBA Office of Advocacy. Jan 2008. Online available at  http://www.sba.gov/advo/research/rs315tot.pdf
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Early US History Markets

Words: 1155 Length: 3 Pages Document Type: Article Review Paper #: 56368047

Market in Early epublic

James Henretta is a history professor for the University of Maryland. In his article about the market in the early republic, Henretta (1998) outlines the structure of the market during that time period. He opens by pointing out that at the time there were two competing views of what the market should look like. One view, that of Hamilton and the Federalist party, was to "use the power of the state to assist monied men ... to pursue a capitalist path of domestic commercial development" (p.290). Such an approach would focus on building a strong banking industry to support the capitalists. The other approach, as advocated by Jefferson, Madison and the Democratic-epublican party, preferred a model that supported farmers, artisans and other small businesses. Incentives would be offered for these to produce for export markets, a "subsistence-plus" model that allowed people the means to survive while…… [Read More]

References

Henretta, J. (1998). The market in the early republic. Journal of the Early Republic. Vol. 18 (2) 289-304.
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Capital Gains Tax in Australia Capital Gains

Words: 2921 Length: 8 Pages Document Type: Essay Paper #: 17440945

Capital Gains Tax in Australia

Capital gains tax refers to a type of tax levied on capital gains incurred by organizations or individuals. The capital gains refer to the profits that an organization or individual selling a capital asset obtains through selling an asset at a price higher than the original price. In many countries, the amount of capital gains tax takes into consideration the type of investment and the holding period of the asset. Australian capital gains tax takes a proportion of all achieved capital gains. Capital gains are not separate tax but part of the income tax on individuals and corporations upon disposing of capital assets. Australian capital gains tax exempts personal properties such as home, car, and furniture. Australian residents in any part of the world are subject to capital gains tax.

Issue 1. Moodly's Conversion of her main residence.

Moodly being a childcare worker, wishes to…… [Read More]

References

OECD Tax policy studies. 2006. Taxation of Capital Gains of Individuals: Policy

Considerations and Approaches. No.14. Paris: OECD Publishing.

Pricewaterhouse Coopers. 2006. Mergers and acquisition: A global Tax Guide. New Jersey:

John Wiley and Sons Inc.
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Capital Gain the Revenue Reconciliation

Words: 2401 Length: 8 Pages Document Type: Essay Paper #: 7106500

Furthermore, capital gains normally tend to be spread across a wider income scale than many believe. According to the IRS Individual Income Tax Returns, Preliminary Data, 1992 federal income tax returns, 55% of returns claiming capital gains were from incomes of $50,000 or less, including a capital gain (Thorning, 1995). hat this information appears to come down to is that the capital gains tax affects almost everyone, which happens to affect the economy in general.

Tax Act of 2011

ith some of the huge advantages that have been back loaded, the Tax Relief Act of 2001 displays itself as more of a tax odyssey than what would be considered a tax act. The most positive of those that are called our planners really just provide estate tax repeal which is a 50/50 possibility of essentially being executed. Taxpayers and planners similarly are left with the troublesome query, "hat is the…… [Read More]

Works Cited

Gordon, M. (2209). Stock Market Looks More Like Face of America, Survey Says. The Associated Press Business News, 25.

John Freear and William E. Wetzel, J. (2009). Who Bankrolls High-Tech Entrepreneurs? American Council for Capital Formation Center for Policy Research,, 101.

Michael J. Graetz. (2010). Distributional Analysis of Tax Policy. Discovery and the Capitalist Process, 105-121.

Robert Gillingham, a. J. (2007). The Effect of Marginal Tax Rates on Capital Gains Revenue,. National Tax Journal, 123.
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Capital Budgeting for Guillermo Furniture Guillermo Navallez

Words: 1012 Length: 4 Pages Document Type: Essay Paper #: 6402975

Capital Budgeting for Guillermo Furniture

Guillermo Navallez, owner of the relatively small yet highly successful furniture manufacturer Guillermo Furniture, is faced with a tough decision. Due to changes in the industry an in his operating atmosphere, Guillermo is unable to continue competitively running his company as he has for the past decades, with a crew of skilled laborers building furniture and with distribution handled essentially by the company itself. He must either automate his manufacturing process with a very high initial cost for equipment but allowing him to continue as a furniture manufacturer, he can shift to distribution for foreign competitors with cheaper products seeking entry into the North American market, or he can begin manufacturing and selling his patented flame retardant instead. Each choice will require an initial outlay of capital and will also have varying returns over the years. Assessing these options from a budgetary standpoint requires the…… [Read More]

References

Case. (n.d.). Guillermo Furniture Scenario.

Cross, V. (2012). Techniques in capital budgeting decisions. Accessed 16 October 2012.

 http://smallbusiness.chron.com/techniques-capital-budgeting-decisions-23638.html 

Guin, L. (2011). Capital budgeting techniques. Accessed 16 October 2012.
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Capital-Intensive Manufacturing Method in Order to Properly

Words: 976 Length: 3 Pages Document Type: Essay Paper #: 60885559

Capital-Intensive Manufacturing Method

In order to properly calculate the estimated break-even point in annual unit sales of the new product if Martinez Company uses the capital-intensive manufacturing method, the first step is to add the manufacturing cost of this methodology. On a per unit basis, those costs are $5 +$6+$3 for a total of $14 per unit. Therefore, for every unit sold the company will profit $16, which is that $14 minus the $30 unit sales price. While the company is profiting $16 for each unit sold, it has a fixed manufacturing cost of $2,508,000 for choosing this particular methodology. Additionally, the company must compensate for an annual incremental selling expense of $502,000 as well as $2 for each unit sold. It has been noted that, "the incremental cost of selling an additional item is the difference between the cost of selling with the item included and the cost of…… [Read More]

References

Hendricks, K.B., Singhal, V.R. (2003). The effects of supply chain glitches on shareholder wealth. Journal of Operations Management. 21, 501-522. Retrieved from  http://www.wlu.ca/documents/17399/glitch_shareholder_jom.pdf 

Lederer, P.J., Singhal, V.R. (1994). The effect of financing decisions on the choice of manufacturing technologies. International Journal of Flexible Manufacturing Systems. 6 (4), 333-360.

Marginal & incremental costs. (No date).  http://productivity.in . Retrieved from
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Market Study and Potential for EOT Cranes

Words: 1372 Length: 5 Pages Document Type: Essay Paper #: 87703623

Market Study and Potential for EOT Cranes, Gantry Cranes, Jib, and the Market for Imported European Hoist and Crane Components in India.

A boom in the construction industry caused a corresponding boom in the demand for construction building equipment (specifically in cranes and hoists), which shows prediction of increasing in the future. Cement, steel, and construction industries have all been involved in this popularity, all of them requesting EOT cranes, Gentry cranes, JIB cranes and European-imported hoist and crane components. The market for machinery is huge, particularly for used machinery coming from Europe with the latter mostly being used in the unorganized sector. Off Highway esearch (OH), reported that in 2009, India sold 6,499 mobile cranes, most of which have been the pick and carry type. As of 2011, the market size for EOT cranes and hoists is approximately s 1,500 crore to 1,700 crore (Project Monitor). By the year…… [Read More]

References

Basistha, P.P. 2008. 'Lifting Boom'. NBM Media, [Online] Available at:  http://www.nbmcw.com/reports/market-research/equipment-machinery/848-lifting-boom.html 

Cranes Today. n.d. Middle East Cranes. 'BC India Show Preview'. [Online] Available at: http://www.cranestodaymagazine.com/story.asp?storyCode=2058704&sectioncode=66

Cranes Today. N.d. Middle East Cranes. 'Excon 2007, Bangalore, India.' [Online] Available at:

http://www.cranestodaymagazine.com/story.asp?storycode=2047960
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Market Leadership Report Final Project

Words: 3168 Length: 9 Pages Document Type: Essay Paper #: 9237729

Office Depot started its operation five years after Staples. The company has aligned its business strategy to target increasing its market share through business policies similar to those undertaken by Staples Inc. The company is locally owned and faces difficulties in capital expansion to be able to roll more distribution outlets similar to Staples. This has incapacitated the company in acquiring economic of scale in operation. The company currently controls 27% of the total market shares in regions where Staples operates. Office Max is a foreign company that has been in operation for the last 8 years. The company traces its roots in Australia where it controls the largest proportion of office paper supply. In the region, the company has captured 8% of the market share in distributing paper products majorly. The company targets to acquire the market for paper distribution this being where the larger proportion of stationary demand…… [Read More]

References

BAYE, M.R. 2010. Managerial economics and business strategy. 7th ed., New York, McGraw-Hill/Irwin.

BORN, G. 2009. International Commercial Arbitration, Netherlands, Wolters Kluwer Law & Business.

CARNEY, W.J. 2009. Mergers and Acquisitions, Aspen, Aspen.

FLEISHER, C.S. & BENSOUSSAN, B.E. 2007. Business and Competitive Analysis Methods: Effective Application of New and Classic Methods, Upper Saddle River, NJ, Financial Times Prentice Hall.
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Capital Budgeting the Projected Free

Words: 2188 Length: 7 Pages Document Type: Research Proposal Paper #: 50044804

But even with no cost savings whatsoever, this project has a positive NPV.

e can see, therefore, that the greatest area of sensitivity is with the terminal value. The terminal value at present is worth $143 million of the NPV. If we break down the variables that go into the terminal value, however, we notice that the cost savings are critical. If SGA expense is not reduced, then the terminal value is reduced to $67 million and the total NPV for the entire project ends up being $98 million. This figure is less sensitive to the change in cost of goods sold.

e should also consider testing combined sensitivity of our shakiest projections. Sales may not live up to expectations and cost savings might not occur. If we assume no net income and no additional cost savings, the project will have an NPV. If we assume that our expectations for…… [Read More]

Works Cited:

No author. (2009). Free Cash Flow. Investopedia. Retrieved May 13, 2009 from  http://www.investopedia.com /" target="_blank" REL="NOFOLLOW">
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Capital Budget in Recreation in

Words: 1338 Length: 5 Pages Document Type: Term Paper Paper #: 62456257

To solve these emerging needs of the company to satisfy the demand in the market, it is necessary to invest into expanding of the services offered and shifting the existing concept of the club. Firstly, it is necessary to expand the space occupied by renting out additional premises and organizing Spa procedures there. This will require also investment into necessary human resources, such as hiring Spa administrative and consultants specialists offering services for both women and men, and for both facials and body treatment to maximize the services mix. Costs for occupying this space, purchasing necessary equipment and hiring adequate staff so can exceed the current costs by ?450,000, so this is the incremental expense from proceeding with this services expansion programs. Cost to organize the fitness and Spa cafe, which is proposed to call at EnerGi Box, will amount to another ?100,000 annually. The final improvement step is investment…… [Read More]

References

 http://www.thecitypointclub.co.uk/ 

Brayley, R.E., McLean, D. (1999). Managing Financial Resources in Sport and Leisure Service Organizations, Sports Publishing.

Mitchell, D. Coles, C. (2004) Establishing a continuing business model innovation process, Journal of Business Strategy, 25 (3), pp. 39-49.

D. Mitchell, C. Coles, Establishing a continuing business model innovation process, Journal of Business Strategy, Volume 25, No. 3, 2004, pp. 39-49.
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Capital Asset Pricing Model Diversifiable

Words: 602 Length: 2 Pages Document Type: Research Proposal Paper #: 78834025

The CAPM is useful to investors from two standpoints -- time value of money and the risk associated with the money invested. The time value of money is revealed by the free rate risk and represents the compensation investors will receive for having invested their money in the respective share, for a specific period of time. The risk of the investment is revealed by the second part of the formula -- beta x (expected market return -- risk free rate) -- and it unveils the compensation the investor should receive for making an investment with the given levels of risk involved. In achieving this desiderate, the Capital Asset Pricing Model assigns a beta, which helps compare the returns of the asset to the market, over the given time period, and to the market premium. Basically, "the CAPM says that the expected return of a security or a portfolio equals the…… [Read More]

References:

2009, Diversifiable Risk, Answers,  http://www.answers.com/topic/diversifiable-risk  last accessed on September 3, 2009

2009, Diversifiable Risk, Money Terms,  http://moneyterms.co.uk/diversifiable-risk  / last accessed on September 3, 2009

2009, Capital Asset Pricing Model, Investopedia,  http://www.investopedia.com /" target="_blank" REL="NOFOLLOW">
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Capital Structure the Three Companies

Words: 881 Length: 3 Pages Document Type: Research Proposal Paper #: 58787693

The cyclicality of Choice, evidenced by their beta, and the intense competitive pressures, means that the firm is at risk for periods of difficulty. If they are too highly-leveraged, these periods could cause irreparable harm to the company. Ideally, Choice would limit the downside damage caused by the inevitable turbulent times. The medium debt ratio achieves this.

The ideal capital structure for Dell Computers is a high debt ratio. Dell's business is growing. From their beta we can infer that Dell itself is relatively stable, since they have such a broad customer base. They sell to both businesses and consumers, with several of their product lines being business only. Thus, the bulk of their risk is market risk.

The high debt ratio gives Dell sufficient leverage to participate in their industry's growth. ithout a strong cyclical downside, they are in a good position to take on a higher debt ratio,…… [Read More]

Works Cited

Betas, Balance Sheets, Income Statements and Business Descriptions on all three companies obtained July 30, 2008 from Reuters.

Hatfield, Gay; Cheng, Louis; and Davidson, Wallace. (1994). The Determination of Optimal Capital Structure: The Effect of Firm and Industry Debt Ratios on Market Value. Journal of Financial and Strategic Decisions. Retrieved July 30, 2008 at  http://www.studyfinance.com/jfsd/pdffiles/v7n3/hatfield.pdf
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Capital Structures Essentially There Are Really Only

Words: 654 Length: 2 Pages Document Type: Essay Paper #: 84224873

Capital Structures

Essentially, there are really only two ways in which organizations can raise money -- debt or equity. The core of this comes down to cash flow for each type of financing. A debt claim, for instance, allows the holder to a set of cash flow, typically principle and interest; an equity claim entitles the holder to any leftover cash after meeting all other claims. Secondly, debt has prior claim on cash flow and assets. This complicates the matter of the way debt is managed and analyzed when looking at different industries. For instance, debt as a percentage of the market value of equity in an airline would be different than one in say, electronics -- all dependent upon a variety of inventory and supply/demand, price elasticity ratios.

Organizations that have high debt-equity ratios seem to be the ones that have longer term, or higher cost-based services; or those…… [Read More]

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Capital Budgeting the Beta for

Words: 749 Length: 3 Pages Document Type: Case Study Paper #: 47241299

1

0.107

0.107

1.788005

4.37%

7.24%

D 20 Lev

1.2925

0.120475

0.11038

1.653411

4.05%

7.22%

D 50 Lev

1.87

0.1609

0.16045

-0.1731

-0.44%

7.05%

5. The only project that is unacceptable is Project D. At the 50% leverage level. This has a negative NPV. The other projects at each leverage level all have positive net present values. The following graph shows the NPVs for the different projects:

6. My objective in making this decision is to maximize firm value. The projects are mutually exclusive. I would use NPV as the main criteria. This means that Project B. is the most desirable, at the zero leverage level. Project A is the second-most desirable, against at the zero leverage level. Project C. is the third-most desirable. Project D. is the least desirable and at the 50% leverage level is unacceptable. I feel that it is best to use NPV has the criteria…… [Read More]

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Capital One There Are a Number of

Words: 341 Length: 1 Pages Document Type: Essay Paper #: 88795597

Capital One

There are a number of risks facing Capital One in the near future. As a financial institution, Capital One faces interest rate risk, in particular given the possibility of a perpetually low interest rate environment (2011 Annual Report, p.2).

There is also the risk that economic recovery will not be strong, given the dependency of Capital One on consumer spending, in particular the rise of consumer debt (2011 Annual Report, p.18). There are also significant risks in the regulatory environment, as banking is a heavily-regulated industry and there are a number of changes proposed to the regulatory environment (p.20).

The company has a number of strategies to mitigate these risks. It addresses interest rate risk by utilizing different financial assets, including different brands and sources of capital, to lower its cost of capital. Geographic diversification also helps to mitigate economic risk, although the company does still have concentration…… [Read More]

Works Cited:

MSN Moneycentral. (2012). Capital One. Retrieved November 17, 2012 from  http://investing.money.msn.com/investments/stock-income-statement/?symbol=COF 

Capital One 2011 Annual Report. Retrieved November 17, 2012 from http://phx.corporate-ir.net/phoenix.zhtml?c=70667&p=irol-reportsannual

Investopedia. (2012). Capital asset pricing model. Investopedia. Retrieved November 17, 2012 from  http://www.investopedia.com /" target="_blank" REL="NOFOLLOW">
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Market Efficient Respect Set Information Impossible Makes Abnormal Profits

Words: 2918 Length: 8 Pages Document Type: Essay Paper #: 63233798

Market Efficient espect Set Information Impossible Makes Abnormal Profits

Market Efficient

In his work, Fama argued that given the massive use of resources by the brokerage firm to conduct studies on trends in the industry, the effects of changes in interest rates on corporate balance sheets and expectations of managers and/or political analysts of the companies should be able to systematically beat a generic portfolio with the same risk characteristics.

Since, according to Fama, professional in every situation, the analyst has a fifty percent chance of beating the market; although its specific capabilities did not exist he would beat a lot of the market. The analyst did "help" the market to be efficient if all the investors, in fact, would hold portfolios composed of stock indices, would open up significant opportunities for professional traders to take advantage of the situation. But the movement of traders to that "new market" would…… [Read More]

References

Arrow, K.J., 1959. 'Toward a theory of price adjustment', in M. Abramovitz (ed.), The Allocation of Economic Resources, and Stanford: Stanford University Press, pp. 41 -- 51.

Aumann, R.J., 1964. "Markets with a Continuum of Traders," Econometrica, Vol. 32, No. 1/2, Jan. - Apr., pp. 39 -- 50.

Clifton, J.A., 1977. "Competition and the evolution of the capitalist mode of production," Cambridge Journal of Economics, vol. 1, no. 2, pp. 137 -- 151.

Frank, R., 2008. Microeconomics and Behavior 7th ed. (McGraw-Hill) ISBN 978-007-126349-8.
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Capital Decision Making a Decision as a

Words: 794 Length: 3 Pages Document Type: Essay Paper #: 85363415

Capital Decision

Making a decision as a venture capitalist, whether as a director/adviser for a venture capital firm or as an individual investor looking for a substantial investment opportunity, requires a great deal of consideration on various levels. Before a decision to invest is made, a careful consideration of the quantitative and qualitative aspects of a company must be undertaken, and the potential payoff of any investment must be weighed against the risks identified both within the company and in its operating environment. The following paragraphs will present a brief analysis of two publicly traded companies that are well-established, yet are also potentially large investment opportunities for an entity with an appropriate amount of capital. The risks and current states of these companies will be assessed along with other details and information in order to determine which company represents the best investment.

pSividia

pSividia Corp., founded in 1987, specializes in…… [Read More]

References

Yahoo Finance. (2011). PSVD. Accessed 2 June 2011.  http://finance.yahoo.com/q/pr?s=PSDV+Profile 

Yahoo Finance. (2011). SMED. Accessed 2 June 2011.

 http://finance.yahoo.com/q/pr?s=SMED+Profile
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Capital Asset Pricing Model CAPM Basically a

Words: 759 Length: 2 Pages Document Type: Essay Paper #: 92871616

Capital Asset Pricing Model (CAPM)

Basically, a diversifiable risk can be taken to be that risk which is largely limited to a given sector or security. On the other hand, a risk which affects the entire assets or liabilities class is referred to as an un-diversifiable risk. While it is possible to eliminate or reduce a diversifiable risk through diversification, the same cannot be utilized when it comes to the elimination or reduction of an un-diversifiable risk.

A Substantial Unexpected Increase in Inflation

This can be classified under un-diversifiable risks. According to Huwawini & Viallet (2010), events that seem to impact on the entire economy are in most cases the sources of un-diversifiable risks. Inflation impacts on an entire economy and is hence an un-diversifiable risk. This risk cannot be minimized through diversifying a portfolio

A Major ecession in the U.S.

A downturn in economic activity is referred to as…… [Read More]

References

Huwawini, G. & Viallet, C. (2010). Finance for Executives: Managing for Value Creation.

Cengage Learning.

Pahl, N. (2009). Principles of the Capital Asset Pricing Model and the Importance in Firm

Valuation. GRIN Verlag.
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Market Competition and Regulation the

Words: 2379 Length: 8 Pages Document Type: Essay Paper #: 65812053

Of course, this is a good thing for customers on short-term, but is negatively affects other companies on the market. This is because smaller competitors and especially those that intend to enter the market addressed by IBM find it at least difficult to provide product prices in accordance with those provided by IBM. These smaller companies do not have the ability of reducing their production or operating costs, which does not allow them to introduce competitive prices on the market. This way, they are clearly disfavored by IBM's position and market power.

In addition to this, in a field like it, it is imperative to make continuous investments into the research and development activity. This requires significant capital amounts from these companies. The investment levels that IBM reaches cannot be reached by many of these companies. This makes it difficult for these companies to keep up with IBM and its…… [Read More]

Reference list:

1. Oates, J. (2009). IBM Faces EU Monopoly Probe. Enterprise. Retrieved November 14, 2010 from  http://www.channelregister.co.uk/2009/01/20/ibm_eu_probe/ .

2. Annual Report (2010). IBM. Retrieved November 15, 2010 from  http://www.sec.gov/Archives/edgar/data/51143/000104746910001151/a2195966z10-k.htm .

3. Monopoly: A Brief Introduction (2006). Linux Information Project. Retrieved November 15, 2010 from  http://www.linfo.org/monopoly.html .

4. O'Gara, M. (2010). EC Opens Two Antitrust Investigations of IBM. Retrieved November 15, 2010 from http://soa.sys-con.com/node/1478919.
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Capital Structure Refers to the

Words: 384 Length: 1 Pages Document Type: Term Paper Paper #: 36551935



Simerly and Li believe that an organization must find a match or fit between the demands of its competitive environment and its internal management systems in order to succeed and to survive." In general, the authors recommend firms in industries with low rates of environmental change high economic performance choose equity over debt in financing projects with uncertain outcomes. Conversely, firms in industries with high rates of environment change and low economic performance should consider increasing debt to increase returns to investors. Further, Simerly and Li caution that increasing debt brings more external control and that management needs to decide how much autonomy is appropriate for the organization.

ibliography

Modigliani & Miller (M&M propositions I & II) - Capital structure of corporations. Retrieved from Web site: http://www.financescholar.com/modigliani-miller-propositions.html

Simerly, R.L. And Li, Mingfang. Re-thinking the capital structure decision. Retrieved from Web site: http://www.westga.edu/~bquest/2002/rethinking.htm… [Read More]

Bibliography

Modigliani & Miller (M&M propositions I & II) - Capital structure of corporations. Retrieved from Web site:  http://www.financescholar.com/modigliani-miller-propositions.html 

Simerly, R.L. And Li, Mingfang. Re-thinking the capital structure decision. Retrieved from Web site:  http://www.westga.edu/~bquest/2002/rethinking.htm
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Capital Budgeting the Aim of Hospitals Is

Words: 3028 Length: 11 Pages Document Type: Essay Paper #: 63314935

Capital Budgeting

The aim of hospitals is to measure and improve the quality of health care service for the patients. Patient satisfaction is the foremost concern. However, to run a hospital, there are a lot of other factors are also involved; e.g. managing cost, budgeting, optimizing operations and increase patient satisfaction level. In order to achieve the desired level of performance, the hospital needs to be up-to-date with the latest technology.

In this era of technological advancements, every company has to maintain all their records on computer because it saves time and needs less effort than manual work. Our hospital has digitalized their data but every department has its own data base. In order to optimize the operations, hospital requires having a central data base system.

As Schuhmann (2009) stated in his article that the recent economic crisis has made it difficult for hospitals finance their capital expenditures. The capital…… [Read More]

References

Bailey, C. (2012). The Cost Reduction Imperative. Becker's Hospital Review.

Cleverly, W.O., Cleverly, J.O., & Song, P.H. (2010). Essentials of Health Care Finance. Jones & Bartlett Learning.

Devraj, S., & Kohli, R. (2000). Information Technology Payoff in the Heath-care Industry: A Longitudinal Study. Journal of Management Information Systems, 41-67.

Finkler, S.A., Kovner, C.T., & Jones, C.B. (2007). Financial Management for Nurse Managers and Executives W.B. Saunders Company.
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Capital Asset Pricing Model the

Words: 574 Length: 2 Pages Document Type: Research Proposal Paper #: 54947862

Investopedia, a noteworthy financial website designed by Forbes Media and aiming to sustain investing decisions, defines the cost of equity as "the return that stockholders require for a company […]. A firm's cost of equity represents the compensation that the market demands in exchange for owning the asset and bearing the risk of ownership."

The CAPM equitation:

ra = rf + ?a x (rm - rf) (Investopedia)

In our scenario, the risk free rate is of 4.5, the risk of the security is of 0.5542 and the expected market return on the Coca Cola share is of 11. Given this situation, the cost of equity (ra) can be computed as follows: 4.5 + 0.5442 x 6.5 = 8.0373

3. Portfolio Beta

Knowing the risks associated with each investment in the portfolio, the beta of the portfolio can be computed by summing up the multiplications of each individual beta times the…… [Read More]

References:

2009, Portfolio Beta, Farlex, the Free Dictionary,  http://financial-dictionary.thefreedictionary.com/portfolio+beta  last accessed on September 3, 2009

2009, Investopedia,  http://www.investopedia.com  last accessed on September 3, 2009

2009, PC Quote, http://www.pcquote.com last accessed on September 3, 2009
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Capital Assets Classification of Gains or Losses

Words: 592 Length: 2 Pages Document Type: Essay Paper #: 98593604

Capital Assets

Classification of Gains or Losses on Futures Contracts

Facts: Taxpayer: In order to properly account for the loss that she took on her futures, Haig Simmons must understand the difference between a capital loss (or gain) and an ordinary loss (or gain). In her situation, the coal futures were a something that she entered into as a hedge in order to protect herself against fluctuations in the price of coal. This year, she has recorded a loss on the futures contract.

Is the futures contract considered a capital loss or an operating loss?

May the taxpayer deduct the loss on the futures contract from operating income?

Yes, the taxpayer may deduct the loss on the futures contract from her operating income.

In this situation, the futures contract was indicated to be a hedge at the time of the purchase. This means that it is not a capital asset.…… [Read More]

Works Cited:

Arkansas Best Corporation, Petitioner v. Commissioner Of Internal Revenue.

No. 86-751. Retrieved October 4, 2011 from  http://www.law.cornell.edu/supremecourt//text/485/212 

Corn Products Refining Co. v. Commissioner, 350 U.S. 46 (1955) Retrieved October 4, 2011 from  http://supreme.justia.com/us/350/46/case.html 

LII. (no date). § 1221, U.S. Tax Code. Cornell University. Retrieved October 4, 2011 from  http://www.law.cornell.edu/uscode/26/usc_sec_26_00001221-000-.html
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Capital Project the Nexus Q Google's New

Words: 733 Length: 2 Pages Document Type: Essay Paper #: 22359984

Capital Project

The Nexus Q, Google's new media streamer, is failing to satisfy investors because it fails to incorporate Google TV, is limited to Google Play, while You Tube has all the necessary features has been let down with the Nexus Q, and it has no Android interface (Smith). The operating system has been buried under Google-owned apps. The device is lacking in features with an overbuilt operating system. With the device costing more to the consumer than competitive products, this will not sell well and could cause the company to develop a bad image. Competitor products include Apple TV, Roku, and other Internet friendly set up boxes.

To make this product more competitive and provide justification needed for the higher price to consumers, it needs to be upgraded to provide features compatible for Google TV, You Tube, and Android compatible features for users to be able to do more…… [Read More]

Bibliography

Google, Inc. Annual Report. 31 Dec 2011. Document htm. 05 July 2012.

Horngren, C.T., S.M. Datar and G. Foster. "Chapter 21." Horngren, C.T., S.M. Datar and G. And Foster. Cost Accounting 12th ed. Upper Saddle River, NJ: Pearson Prentice Hall, 2006. 839. Textbook.

Smith, P. Google Inc. (NASDAQ:GOOG) Under Uses Its Impressively Built Nexus Q. 05 July 2012. News Article. 05 July 2012.
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Capital Budget Processes and Techniques People Often

Words: 789 Length: 3 Pages Document Type: Essay Paper #: 5631191

Capital Budget Processes and Techniques

People often ask what happens when there is a surplus of imports brought into the U.S. Many think that we just have more of what we brought in to be able to hang on to and sell at a later date but that is not the case. When there is a surplus of the products that have been brought in then the price of what the surplus is will drop. Unlike when there just isn't enough for the demand for the product then the price will raise. The reason that the price will drop is due to the products already have been paid for and now they are storing the products which cost money.

When the price is dropped then this allows for the product to be moved quickly and make room for more product and different kind of product. By doing this the price…… [Read More]

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Market Potential and Forecast Analysis

Words: 996 Length: 4 Pages Document Type: Essay Paper #: 37804965

The assumptions of industry structure and pricing are based on the market shares of the leading competitors in the motorcycle market including Harley-Davidson with 65% and Honda with 12.9%. There are over 40 different manufacturers of motorcycles globally who comprise the remaining 22% of the worldwide market (Murphy, 2008). Gaining distribution for a new motorcycle model will be challenging given the concentration level of competitors in the market. As motorcycles are considered discretionary purchases, they are influenced by the consumer sentiment index, the level of per capita disposable income, the downstream demand for motorcycle dealership and repair, and the available time consumers have for using them (Diamond, 2008). All of these factors are taken into account in the factoring of both the baseline motorcycle industry forecast and the hybrid motorcycle forecast as well.

Sales and Unit Forecasts

Using exponential smoothing and an average sale price of $9,100, the forecast for…… [Read More]

References

Diamond, D.. (2008). Managing Incentives for Green Vehicles. Public Manager, 37(4), 15-18.

Lapide, L.. (2009). History of Demand-Driven Forecasting. The Journal of Business Forecasting, 28(2), 18-19.

Patrick Mahoney. (2007, March). Taking the roar out of the crowd: HYBRID MOTORCYCLES. Machine Design, 79(5), 98-100.

Murphy, R., Graber, M., & Stewart, a.. (2010). Green Marketing: A Study of the Impact of Green Marketing on Consumer Behavior in a Period of Recession. The Business Review, Cambridge, 16(1), 134-140.
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Market Model Patterns of Change Sir Madam Answers

Words: 883 Length: 3 Pages Document Type: Essay Paper #: 76379430

Market Model Patterns of Change

Sir/Madam, answers attachment page. But write a APA format, citing quotations a APA format. answers fits 3 pages.

The operating system software industry that was dominated by Microsoft was a monopoly till quite some years back when other players came into the market and disrupted the monopoly. These players include Linux with their various operating system software such as edhat and Ubuntu and Apple with their Macintosh operating system.

The general pattern of change in this particular market model was that of monopoly to oligopoly. There are several short-run and long-run behaviors in the monopoly and oligopoly market models. In monopoly, there is only one market player who has full control over the market. However, in oligopoly, there are several market players who hold different market shares depending on their marketing strategies, brand awareness, product specification, product diversification, etc. Soberman & Gatignon, 2005()

The short-run…… [Read More]

References

Brooks, G.R. (1995). Defining Market Boundaries. Strategic Management Journal, 16(7), 535-549.

Chintagunta, P.K. (1996). Investigating the Effects of a Line Extension or New Brand Introduction on Market Structure. Marketing Letters, 7(4), 319-328.

Soberman, D., & Gatignon, H. (2005). Research Issues at the Boundary of Competitive Dynamics and Market Evolution. Marketing Science, 24(1), 165-174.
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Market Analysis and Marketing for

Words: 1837 Length: 6 Pages Document Type: Term Paper Paper #: 37907304

For this type of customers, Diesel should create a special line of clothing items, different from the one for the primary target customers. For the primary target customers the central piece is the jeans. For the secondary target customers Diesel designers should combine jeans with other clothing items that are best suitable for 25-35 aged customers, that have good jobs and that are present in high social circles. For the secondary target customers the price should be significantly higher than the price for the primary target customers. The secondary target customers are trying to buy a certain status together with the clothing items they buy, so the higher the price of the clothes, the higher the status they are achieving. Other than this, the price should reflect the work invested in creating these clothing items, which require extra care for the secondary target customers.

As mentioned above, the communication strategy…… [Read More]

Reference List

Nordas, H.K. (2004). The Global Textile and Clothing Industry post the Agreement on Textiles and Clothing. World Trade Organization. Retrieved July 8, 2007 at  http://www.wto.org/english/res_e/booksp_e/discussion_papers5_e.pdf .

Diesel History (2007). Diesel Clothing. Retrieved July 8, 2007 at  http://www.diesel.com/#/dieselinfoandpress/ .

Profile of General Demographic Characteristics: 2000. U.S. Census Bureau. Retrieved July 8, 2007 at  http://www.census.gov/main/www/cen2000.html .

Consumer Buying Behavior Notes. Retrieved July 8, 2007 at  http://www.udel.edu/alex/chapt6.html#personal .
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Market Entry the Introduction of

Words: 9989 Length: 27 Pages Document Type: Term Paper Paper #: 40661812

com. In case of several companies, enhancing customer relationships is among the most capable features of e-commerce. However, whereas the Internet has presented the consent of a novel method to draw and communicate with the customer, hardly few enterprises have discovered a method to efficiently manage interactions with their customers on the Internet. (David, 2000)

The real skill is involved in making the device suitable to accomplishment of the business strategy and also makes profit persistently. (Howard, 1999) This makes McGrath and Heiens to describe the failures of Internet startups as a moot testimony that "the Internet is a tool, not a panacea" and that a "sound business strategy is always a prerequisite for success" Therefore, even though many successes have appeared to day on the Web in the online industry and in the digital forms in general still more are to be explored for accomplishing long-term goals of the…… [Read More]

References

Allbritton, Marcel M; Rogers, Everett M. (1995) "Interactive Communication Technologies in Business Organizations" the Journal of Business Communication. Volume: 32; No: 1; pp: 36-43

Archer, Norm; Head, Milena; Wang, Fang. (2002) "E-Tailing: An Analysis of Web Impacts on the Retail Market" Journal of Business Strategies. Volume: 19. No: 1; pp: 114-120

Baker, John. F. (December, 1998) "Hyper Wars: Eleven Strategies for Survival and Profit in the Era of Online Business-review." Publishers Weekly. Volume: 12. No: 1; pp: 27-33

Beck, John C; Lynch, Patrick D. (2001) Profiles of Internet Buyers in 20 Countries: Evidence for Region-Specific Strategies. Journal of International Business Studies. Volume: 32; No: 1; pp: 57-63
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Market Society and the Public Sphere

Words: 1350 Length: 4 Pages Document Type: Essay Paper #: 55410408

Market Society and the Public Sphere

My journal text comes to illustrate the utmost significance of globalization viewed as the force molding and shaping the current world. It describes the multidimensional aspect of globalization that influences and encompasses all facets of life through an integrated network. Currently, globalization is the buzzword in media articles, daily talks of media people and talks of politicians. There is no aspect of life that is not influenced or affected by globalization (Tober, 2006, 33). However, many people find it difficult to reflect on this phenomenon. This is because the term is applied in so many aspects leading to its ambiguity in defining it according to my text.

Numerous volumes of work have written about globalization in numerous fields such as political, science, business, economics, sociology and many more. This has made the term globalization lack a precise cogent theory and definition. This is seen…… [Read More]

References

Barnet, R. & Cavanagh, J. (2004). Global dreams: imperial corporations and the new world order. New York: Simon & Schuster

Hass, R. (2003). The corporation without boundaries. The new paradigm in business: emerging strategies for leadership and organizational change. New York: Tarcher/Perigee.

Kapstein, B. (2004). Governing the global economy: international finance and the state.

Cambridge. MA: Harvard University Press
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Market Differences the NYSE Is

Words: 324 Length: 1 Pages Document Type: Thesis Paper #: 1859822

Secondary markets can help to bundle capital with the best managers of that capital, which can be used to generate capital in the primary markets, but in general the primary market is more efficient at allocating capital and of the two is the only one that truly generates new capital, as it funds actual production (Harris 2003).

4)

The Hussman strategic growth fund most closely aligns with my need for long-term financial growth and security, as I am still many years away from retirement, I do not need to take any unnecessary risks in order to achieve more aggressive growth. Though such a fund might be an appropriate secondary investment, the bulk of my capital should be somewhere safer and more assured (Hussman 2009).

eferences

Haris, L. (2003). Trading and exchanges: market microstructure for practitioners. New York: Oxford University Press.

Hussman. (2009. Accessed 24 September 2009. http://www.hussmanfunds.com/…… [Read More]

References

Haris, L. (2003). Trading and exchanges: market microstructure for practitioners. New York: Oxford University Press.

Hussman. (2009. Accessed 24 September 2009. http://www.hussmanfunds.com/

Investopedia. (2009). Accessed 24 September 2009.  http://www.investopedia.com /" target="_blank" REL="NOFOLLOW">
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Capital Budgeting and Applied Technologies

Words: 628 Length: 2 Pages Document Type: Term Paper Paper #: 17290104



ith a strong customer and employee basis, the company envisions taking early leadership of the global market. This is also to be based upon management excellence on a local scale. The management team is envisioned to be capable of translating vision into performance on both a local and global scale, while also investing strategically to maximize profitability and performance.

d. In terms of Research and Development, Applied Materials has increased its investments despite economic downturns. The purpose of this was to increase its potential future profitability by providing advanced manufacturing systems for its customers worldwide. This proved to be a good strategy, as the company had build a broad product line that catered for nearly every chip manufacturing stage. In order to reach the next step; integrating systems to perform a specific process sequence, a new facility was needed, and 1997 saw the beginning of construction on the Equipment and…… [Read More]

With a strong customer and employee basis, the company envisions taking early leadership of the global market. This is also to be based upon management excellence on a local scale. The management team is envisioned to be capable of translating vision into performance on both a local and global scale, while also investing strategically to maximize profitability and performance.

d. In terms of Research and Development, Applied Materials has increased its investments despite economic downturns. The purpose of this was to increase its potential future profitability by providing advanced manufacturing systems for its customers worldwide. This proved to be a good strategy, as the company had build a broad product line that catered for nearly every chip manufacturing stage. In order to reach the next step; integrating systems to perform a specific process sequence, a new facility was needed, and 1997 saw the beginning of construction on the Equipment and Process Integration Center (EPIC).

EPIC represents the first facility of its kind in the semiconductor industry, in its capacity as a dedicated 200mm pilot line integration facility. Specifically, the Center enables the company's customers to make their technology transitions with greater speed and ease. To do this, the Center enables them to evaluate and integrate new manufacturing systems in advance of installing these. This provides the company with an important leading edge in the global marketplace. To accomplish this was a challenge on multiple levels that did not end with the Center opening its doors in 1998. Indeed, in order to adhere to its central aims, engineers for the center had to effectively implement systems by which they could set up their systems as often as once per month and make quick modifications according to differing requirements.
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Capital One Financial Assessment External

Words: 951 Length: 3 Pages Document Type: Research Paper Paper #: 46561573

The company's internal focus will need to shift dramatically in order to maintain or increase its current market position.

Corporate and Business Strategy

Capital One's business strategy is highly aggressive, as is evidenced by their innovative move (for a company with their focus) into the banking industry, and their take-over of several regional banks. Capital One also actively recruits new strategists to work directly at the corporate level, and maintains an internal strategy of frequent strategic change and innovative practices. This leads to an incredibly adaptive business strategy; Capital One has remained poised to exploit new opportunities in the changing banking market.

At the corporate level, Capital One has a healthy mixture of steadfast leadership (the CEO has remained unchanged since the company's formation in 1988) and innovation through new partnerships and new personnel. Like their business strategy, aggressiveness and adaptability have been key components of Capital One's corporate strategy.…… [Read More]

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Capital Budgeting in Health Care

Words: 1462 Length: 5 Pages Document Type: Case Study Paper #: 4883293

Capital Budgeting

There are five strategic projects that are available for Superior Health System. The system lost money last year, but it does have a contingency fund. Whether it is worth dipping into that fund, or other avenues of financing, depends on the strength of these projects. So it is important to analyze the projects.

Partner with a major supplier who will guarantee price, delivery, and product quality

Expand the ENT, Plastic, Gynecology, and Orthopedics surgical programs

Develop a cost-reduction program.

Spend $3,000,000 to expand primary care physician membership in Corinth Health Systems, SHS's PHO

The rational for this order is as follows. Financially, the first two options are positive. Partnering with a major supplier, if it costs nothing up front and delivers that sort of value, should have been done yesterday. Expanding the ENT, gynecology and orthopedics departments has the highest up front cost, and while that might be…… [Read More]

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Market Turmoil May Require New

Words: 1192 Length: 4 Pages Document Type: Essay Paper #: 23840404



Specification of Thesis's Main Point:

Goldman (2009) surmises that today's economic crisis has changed many aspects of financial reporting, one of which is the calculation of the cost of capital.

Three Supporting Opinions/easons:

Utilizing much of his own personal, professional experience as well as other sources, Goldman's (2009) three supporting opinions all highlight the impact today's economic crisis has had. He quotes Marc Panucci, an SEC associate chief accountant, in his first supporting opinion. Panucci agrees with Goldman's theory that the turbulent economic environment of today requires changes to existing disclosures, in order to meet disclosure requirements. This is especially true when meeting disclosure requirements in liquidity, risks and uncertainties, and credit risks.

The Internal evenue Service is Goldman's (2009) second supporting source. Not known for their empathy, the IS has eased rules so that homeowner's facing tax liens can sell or refinance their homes. In fact, in some instances,…… [Read More]

References

Goldhorn, M. (Jan/Feb 2009). Market turmoil require new ways to build capital. The Value Examiner. pp. 23-30.
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Market Returns

Words: 699 Length: 2 Pages Document Type: Essay Paper #: 84701079

Capital

There are a number of financing options for small business. The two major categories are debt and equity. Debt comes in a variety of forms. Bank loans are common. Credit cards are used sometimes by startups; bond issues by larger firms. Debt is an attractive option for a number of reasons. Debt has a lower cost of capital, which is beneficial to many small businesses. As well, debt financing allows the owners of the company to maintain control, and this is usually considered to be quite important for many small businesses in particular. The downside to debt is that the company is then obligated to pay that debt back before it can reinvest profits back into the business - debt repayment is more important than reinvestment in terms of financial obligations (Parker, 2012).

Equity comes at a higher cost than debt. Equity is also means that some control is…… [Read More]

References

Mahmood, D. (2013). How to choose the right investment banker. Inc. Magazine. Retrieved May 31, 2014 from  http://www.inc.com/david-mahmood/how-to-choose-the-right-investment-banker.html 

Parker, T. (2012). Small business financing: Debt or equity? Investopedia. Retrieved May 31, 2014 from  http://www.investopedia.com /" target="_blank" REL="NOFOLLOW">
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Market Analysis Arik Air Based

Words: 3615 Length: 13 Pages Document Type: Research Proposal Paper #: 97373357

(Dunn, 2009)

Arumemi-Ikhide believes that Arik can succeed due to a combination of the opportunity -- helped by economic and air transport reforms in Nigeria -- and the capability to deliver a high quality product." (Dunn, 2009) Also stated by Arumemi-Ikhide is that this "will be a key in differentiating it in the international market and providing feeder traffic. That will be the lifeline for the international network. That's what sets up apart from our rivals." (Dunn, 2009)

Martin Russell states in the report entitled: "Arik Air: The Future of African Aviation" that both the "internal opinion of African air travel and that of onlookers overseas was bleak before the arrival of Nigeria's newest treasure, Arik Air." (2008) Russell states that the aviation industry is African is "hampered by somewhat less predictable weather and frequent storms" resulting in aviation in African being "far from predictable with temperamental skies that readily…… [Read More]

Bibliography

Nigeria's air traffic grows by 31% during 2008; defies global slump (2009) TradeInvest Nigeria Thu, 05 Mar 2009. Online available at:  http://www.tradeinvestnigeria.com/news/957188.htm 

Lawal, Lateef (2009)FG Invests Over N7b In Air Navigation, Safety, Search & Rescue - Nigeria Masterweb Daily News. Online available at: http://www.nigeriamasterweb.com/blog/

More Frequencies to Foreign Airlines Put Nigerian Carriers at Risk (2009) The Guardian -- Travels 17 Jul 2009. Online available at:  http://www.ngrguardiannews.com/travels/article01//indexn2_html?pdate=170709&ptitle=More%20frequencies%20to%20foreign%20airlines%20put%20Nigerian%20carriers%20at%20risk 

Dunn, Graham (2009) Arik Air: Pressing Ahead with International Plans. 3 June 2009. Airline Business. Online available at:  http://www.flightglobal.com/articles/2009/03/06/323508/arik-air-pressing-ahead-with-international-plans.html
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International Financial Markets and Institutions Throughout the

Words: 2559 Length: 8 Pages Document Type: Essay Paper #: 45284927

International Financial Markets and Institutions:

Throughout the globe, today's landscape of international financial market and institutions has continued to experience several changes that require practitioners to examine new models. The need for practitioners to examine new models that are relevant to the state of these markets and institutions has also been necessitated by the recent events that contribute to financial crises, which have been very dramatic. Actually, the recent financial crisis has had significant impacts on the financial institutions and markets resulting in the need for changes. International financial markets and institutions have become an important aspect of economies because they affect daily life. This is primarily because they involve the huge flow of different types of funds in the entire economy that in turn impact the profits of businesses, production of goods and services, and economic well-being of countries. In some cases, the events in these institutions and markets…… [Read More]

References:

Accounting Education (2010), International Capital Market, Accounting Education, viewed 7

June 2012,

Australian Securities Exchange (n.d.), Absolute Return Funds, Australian Securities Exchange,

viewed 7 June 2012,
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International Financial Markets and Institutions

Words: 3339 Length: 10 Pages Document Type: Essay Paper #: 65472909

27-29) This provoked financial demands and awareness of the people in different parts of the world. People and businesses are dissatisfied with the traditional financial systems due to lack of opportunities for investors. Businesses today require more diversified portfolios for investments because this will reduce their investment risks and increase the probability of future capital flows.

Increased capital mobility has increased the importance of exchange rates which is serving as a monetary policy channel in some industrialized economies. In mid 2000s, there was a sharp shift in the flow of international investments and savings (geographic pattern) resulting in the segmentation of current account imbalances. This was also a major contributing factor. Additionally, the domestic financial markets were also affected by the change in regulatory environment. The two important factors for this are as follows:

1. apid growth of OTC (over-the-counter) markets of derivatives in terms of complexity as well as…… [Read More]

References

Bekaert, G., Harvey, C. And Lundblad, C. 2005. Does financial liberalization spur growth? Journal of Financial Economics 77, 3 -- 55.

Edison, H., Klein, M., Ricci, L. And Slok, T. 2004. Capital account liberalization and economic performance: survey and synthesis. IMF Staff Papers 51, 111 -- 115.

Kaminsky, G. And Reinhart, C. 1999. The twin crises: the causes of banking and balance-of payments problems. American Economic Review 89, 473 -- 500.

Klein, M. 2005. Capital account liberalization, institutional quality and economic growth: theory and evidence. Working Paper No. 11112. Cambridge, MA: NBER, pp.19-21.
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Organizations Customer Markets Fundamental Business Models & 8226

Words: 1505 Length: 5 Pages Document Type: Essay Paper #: 27063191

organizations customer markets fundamental business models • In a 3- 5-page paper, apply framework -market analysis (external labor markets, internal labor markets, capital markets, customer markets) conduct a compensation strategy analysis competitive landscape organizations • In addition, organization, highly influential, large population job organization apply question, "What economic difference organization performance job, poor, mediocre outstanding?" Post a multiple market analysis.

Competitive Landscape Analysis on Three Companies

Coca Cola Competitive Landscape Analysis

External Labor markets

Coca Cola is one of the most well-known companies on international level. The company is an established brand with high popularity. Coca Cola has built in time significant emotional attachment to this brand from customers, employees, and business partners. Therefore, it is expected that numerous individuals want to work for the company. Coca Cola has developed a recruitment and selection process oriented towards external sources of recruitment especially regarding entry level and mid level positions. This…… [Read More]

Reference list:

1. Russell, K. (2012). Internal Recruitment: Right or Wrong? HR Magazine. Retrieved May 6, 2013 from  http://www.hrmagazine.co.uk/hro/news/1073667/internal-recruitment-wrong .
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International Equity Markets

Words: 1160 Length: 4 Pages Document Type: Capstone Project Paper #: 42780096

International Equity Markets

Advantages and disadvantages of cross listing on stock exchanges

When a company lists its stock exchange on many stock exchanges in different countries, it is referred to as cross listing. It entails exchanging in more than one country. However, a company can list its stocks on two stock exchanges in the same country. The administration is likely to be widened besides the generation of great pool of possible investors. In most cases, companies employ the common form of cross listing whereby they launch a primary listing in the country of origin before initiating a secondary listing in a foreign country. This happens when a business is pursuing to go global. For instance, an Australian firm expanding in the U.S. And seeks to reflect this in the best way (Dobbs & Goedhart, 2010).

The major reason of cross listing is to avail stock to many people across the…… [Read More]

References

Rubery, S. (2007). Corporates spread their wings on international exchanges. Corporate Finance, London, U.K.

McDowall, L. (2010). Publicly listing a company - the advantages and disadvantages. Retrieved from  http://ezinearticles.com/?Publicly-Listing-A-Company-The-Advantages-And-Disadvantages&id=835976 

Dobbs, R. & Goedhart, M.H. (2010). Why cross-listing shares doesn't create value. Retrieved from  http://www.bnet.com/2403-13239_23-255550.html 

Youxing, L. (2009). Comparison of the legal institutions of enterprise financing in China and the United States. Retrieved from  http://www.indiana.edu/~rccpb/uschinacooperation/papers/P10%20Li%20Youxing.pdf
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Paid-In Capital it Is Important to Keep

Words: 1158 Length: 4 Pages Document Type: Essay Paper #: 10991725

Paid-In Capital

It is important to keep paid-in capital separate from earned capital (retained earnings) because they are two different forms of capital. For the investor, it is important to understand the differences between the two. Paid-in capital is the capital that the stockholders have paid into the business. Earned capital is the capital that has accumulated from the firm's earnings (Kieso, eygandt and arfield, 2007). Thus, the latter is a measure of how much money the firm has made while the former is a measure of how much money the firm has raised.

It is important to keep these two forms of capital separate because they derive from two different activities. On the cash flow statement, for example, paid-in capital would be a financing cash flow while earned capital would be a combination of operating and investing flows. By maintaining a clear distinction between the two, the exact nature…… [Read More]

Works Cited:

Kieso, D.E., Weygandt, J.J., & Warfield, T.D. (2007). Intermediate accounting, (12th ed.). Hoboken, NJ: John Wiley & Sons.