In particular, is Midland’s choice of market risk premium appropriate, and if not, what recommendations would you make and why? 3. Should Midland use a single corporate hurdle rate (i.e. a firm-wide WACC) for evaluating investment opportunities in all of its divisions? Why or why not?
Under either system, companies will be required to report assets at either book value or fair value, depending on the situation. As a general rule of thumb, all assets in the same class must receive the same valuation treatment. In regards to the value of receivables, IRFS uses a two tiered method that first analyzes individual receivables, and then looks at receivables as a whole to determine if there is any impairment. IFRS 9-1 What is component depreciation, and when must it be used? * Component depreciation happens when an asset has fundamentally different parts that should be depreciated with different treatment.
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 form. * Sole proprietorship – advantages: ease of formation, subject to few regulations, no corporate income taxes. Disadvantages: Limited life, unlimited liability, difficult to raise capital * Partnership – Roughly the same advantages and disadvantages as a sole proprietorship.
Hutchison Whampoa Ltd EPS Vs Dividend Per Share (1991-2012) In order to further analysis the dividend policy of these three companies, Lintner’s Dividend Smoothing model is adopted. The model is as follow: D1-D0 = s(tEPS1 – D0) D1 – D0 : Actual Dividend Change s : Speed of adjustment of actual to target divided t : Target Payout ratio Assuming s = 0.1, t be the average of all years’ actual payout ratio, one could find that the trend of the results from this model (Fig 4 to 6) are very similar to the above graph (Fig 1-3). They all follow close the changes in EPS.
Next to be considered would be to determine the pricing objectives in regards to what the company deems to be appropriate profit goals. Finally, the above information would be used to delineate pricing parameters (NetMba, 2007). Kodak assessed the market and decided on a strategy the polar opposite of
Describe the fundamental similarities and difference between procurement, manufacturing support and physical distribution performance cycle as they relate to logistical control? 2. What is Reverse logistic? Discuss with the help of examples. 3.
What is the right cost of capital for the various Equity options? Measure and explain the cost of capital for each equity option. 4. Now imagine you are HPI’s investment banker and you are proposing an ADR on the NYSE. You have to convince HPI’s bearer of the price at which they should issue the shares?