If she were to move to another state where her marginal state rate would be 10 percent, would her choice be any different? Assume that Dana itemizes deductions. When the state rate is 5 percent, Dana would achieve the following returns from the Treasury bond or the corporate bond: The Treasury bond yields $1,125 or $30,000 x [.05 x (1-.25)] after tax. The corporate bond yields $1,282.50 or $30,000 x [.06 x (1 - .25 - .05(1-.25))] after tax. Note that the actual state rate is reduced by 25% to allow for the deductibility of state income taxes on the federal income tax return.
This significantly impacts the equity to debt ratio used in the WACC calculation. It raises the equity portion of total capital from 73% to 90%. We agreed with Joanna’s debt figure of $1,296.6. Due to the change in equity, the debit percentage of total capital was reduced from 27% to 10%. Joanna used the current yield on the 20-year Treasury bond as her risk-free rate.
There is a very low probability (5% at most) that the annual income for the data from AJ DAVIS is less than $50,000. The way that we concluded this was to test the probability that the annual income of our customers is $50,000 versus the probability that the average annual income was less than $50,000. What we found was that there is a 95% chance that the average annual income of our customers is between $69,997.9 and $70,001.8. This was also backed with a p-value (which determines the strength of the evidence) that showed weak evidence against the average income equaling $50,000. Since we cannot deny that the annual income average is $50,000, we have no choice but to keep it as a consideration moving forward.
1.04H Over the last few years, the United kingdom has been the country everybody has taking about. The united kingdom claimed to have reached their golden age in the 1920's, however, they seem to be making a comeback. Britain has made an amazing impact in the worlds pop culture industry. The countries biggest artistic success come from the music industry. Music from British artists is spreading fast, becoming more and more popular throughout teenagers worldwide.
In fiscal year 2008, Home Depot Incorporated generated $5.5 billion of cash flow from operations and used $2.0 billion to repay short-term debt and other obligations plus $1.8 billion for capital expenditures and $1.5 billion in dividends. Investment activities did change significantly. The purchasing and sale of investments was reduced along with capital expenditures. There was net outflow of cash in terms of investing activities (Phillips, Libby, Libby,
Rivalry The rivalry in the search based advertising market is intense because it is quite a huge market generating $450 billion earnings worldwide. The demand in this market is high and is constantly growing. Google experiences major profits in this market because of its auction methodology. Google’s stated goal is to “organize the world’s information” (Google, 2008), and to merit they have created many complimentary products to their main Internet search service. Google has the largest Market share in this industry and this helps them to improve the quality of their search results and targeted ads more quickly than their competitors.
They have around 6000 stores in USA and 2000 Stores in UK, Japan and Canada. External Enviorment * The external analysis of the sports apparel will describe the attractiveness of the industry. * Amour has a high threat of substitute, high competative rivalry and a they need to be differentiate their product. * If they can differntiate their product that time they can gain more profit, else competitor will take the advantage. * Moreover, they can cover more population as the demand of sports wear and apperal industry demand is increasing day by day.
Clearly indicate your assumptions. IsMidland's choice of expected market risk premium appropriate? If not, whatrecommendation would you make and why? We think best estimate for market risk premium would be the average excess return (5.1%) for the longest period (1798-2006) as given in Exhibit 6 mainly because of lowest standard error.Midland has taken 5% as risk premium, which is very close t o 5.1%. Therefore Midland’s choice appears to be appropriate.
Competing with long established leading brands such as Nike and Adidas, in Under Armour he is building an innovative brand to turn it into a billion dollar international business. The case study presents extensive information about Under Armour’s strategy and key business functions and processes. The objective of your case analysis will be to assess your understanding of its capabilities and core competencies in the value chain and how far these have influenced the success of growth strategy within its competitive environment. You may be familiar with its products as it sponsors international teams and individuals (e.g. golf), however, as you will see in the case its sales are still predominantly in the US.
Key External Factors Weight Rating Weighted Score OPPORTUNITIES 1.People who are obese and overweight are estimated to increase by 27.27% and 17.95% respectively by 2015. (Social) 2.Global population is estimated to grow 1.45% in the year 2012,and surpass 9billion in 2050. (demographic) 3. The women’s sports market is one of the most attractive segments in the sporting goods industry. (social) 3.Increasing consumer demand for functional apparel.