...Stryker Corporation is a medical company founded in 1946 by Homer Stryker. It specializes in medical technology and it is headquartered in Kalamazoo, Michigan. This report will be focused Stryker Corporation’s capital budgeting process and identifying some of the strengths and weaknesses that come along with it. The missions of CERs and the capital budgeting at Stryker: Stryker Corporation has had an outstanding growing background since it started. They have a benchmark of 20% growth annually, and one of the reasons the firm has been able to do this is their way of managing their capital budgeting process. Stryker used CERs (Capital Expenditure Requests) in their capital allocation process. These were basically permission forms that were submitted to be filled out by the authorities in order to get allowance to spend a certain amount of money. The mission of the CERs and the capital budgeting process at striker is to standardize and formalize the capital budgeting process. The CERs made it easier for the company to keep track of the expenditures that were made in each division. Thus, the firm was able to support cash flow targets and maintain the 20% growth of the company. The CERs have been shaped by elements of corporate finance theory. The fact that the CERs are made to have a smarter way of managing the expenditures of the company, automatically refers to the principal goal of corporate finance which is to maximize shareholder’s wealth. Since the CERs are helping...
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...relative net benefits of alternative and mutually exclusive projects. It has inspired many research scholars and is primarily concerned with sizable investments in long-term assets, with long term life. The growing internationalization of business brings stiff competition which requires a proper evaluation and weight age on investment appraisal issues viz. differing project life cycle, impact of inflation, analysis and allowance for risk. Therefore financial managers must consider these issues carefully when making capital budgeting decisions. Inflation is one of the important parameters that govern the financial issues on capital budgeting decisions. Managers evaluate the estimated future returns of competing investment alternatives. Some of the alternatives considered may involve more risk than others. For example, one alternative may fairly assure future cash flows, whereas another may have a chance of yielding higher cash flows but may also result in lower returns. It is because, apart from other things, inflation plays a vital role on capital budgeting decisions and is a common fact of life all over the world. Inflation is a common problem faced by every finance manager which complicates the practical investment decision making than others. Most of the managers are concerned about the effects of inflation on the...
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...this chapter, students should be able to: • Discuss difficulties and relevant considerations in estimating net cash flows, and explain the four major ways that project cash flow differs from accounting income. • Define the following terms: relevant cash flow, incremental cash flow, sunk cost, opportunity cost, externalities, and cannibalization. • Identify the three categories to which incremental cash flows can be classified. • Analyze an expansion project and make a decision whether the project should be accepted on the basis of standard capital budgeting techniques. • Explain three reasons why corporate risk is important even if a firm’s stockholders are well diversified. • Identify two reasons why stand-alone risk is important. • Demonstrate sensitivity and scenario analyses and explain Monte Carlo simulation. • Discuss the two methods used to incorporate risk into capital budgeting decisions. • List four different types of embedded real options, explain what a decision tree is, and provide an example of one. • List the steps a firm goes through when establishing its optimal capital budget in practice. LECTURE SUGGESTIONS This chapter develops procedures for estimating and identifying relevant cash flows, discusses techniques used to measure and take account of project risk, introduces the concept of real options, and discusses general principles for determining the optimal capital budget. Assuming you are going to cover...
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...decision the implementation of alternative needs to be considered. The three alternatives investment projects (the currently used approach, the high-tech approach, and the broker approach) needs to be categorized in a distinct order. The currently used approach consists of the company not changing their position, they will continue with their business lifestyle since the 1900s. High-tech alternative will allow the company to produce more custom furniture at a lower cost. The broker alternative will have allowed Guillermo to become one another store. The best alternative must be chosen to keep a productive business running successfully. The implementation of capital budget needs to be considered also with the three alternatives. Capital budgeting decisions “The objective is to find investment projects that will add value to the firm. These are projects that are worth more to the...
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...Martin de Tours School of Management Department of Marketing ------------------------------------------------- Group Acknowledgement Form * Subject Code : | | Section: | | Group Name | | | | Group Topic/Client (if applicable): | | | | Please confirm that your report meets the following requirements (by ticking each box) before submission: * The declaration below has been read, signed, and dated. * The report is originally made and has not been submitted previously in other course units. Academic Honesty All forms of plagiarism and unauthorized collusion are regarded as serious offense by the university and could result in penalties including failure and possible disciplinary action. If in doubt as to the authenticity and legitimacy of the report, immediate consultation with the course lecturer is therein recommended. Declaration We have read and understood the information stated in Academic Honesty. We hereby accept and acknowledge that this report is our own work, has been expressed in our words and has not been previously submitted to other course units either as assignment or project paper. Student I.D. # | Group Members’ Names | Signature | Date | 1. | | | | 2. | | | | 3. | | | | 4. | | | | 5. | | | | 6. | | | | 2. Table of Contents No. | Topics | Page | 1. | Group Acknowledgement Form | 1 | 2. | Table of Contents | 2 | ...
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...Boots Case Study Group 9 Section A ArjunSpolia Manish Soni Mayank Gupta Shitij Jain VarunAhooja 3 FOR 2 Allows consumers to combine any three products of their choice(of the same brand) Least expensive item will be given free Expected sales increase to 300% 60% of these customers would not have purchased boots hair care products otherwise Gift With Purchase Product sample given with regular purchase Existing sample products used Cost of sample 93p Expected sales increase to 170% 40% of these customers would not have purchased boots hair care products otherwise ONE PACK COUPON 50p off Conservative Approach Expected sales increase to 150% Customers would be able to redeem coupon during the current visit to the store 50% of these customers would not have purchased boots hair care products otherwise Shampoo I/O Shampoo Brand Max Average Min 3 for 2 GWP GWP On-Pack On-Pack Price Price Price (max) (min) Coupon Coupon (Max) (Min) 2.2 2.5 1.6 1.6 2 2 1.6 1.95 1.95 1.6 1.6 1.75 2 1.6 1.7 1.4 1.6 1.6 1.5 2 1.6 0.41 0.31 0.50 0.50 0.40 0.50 0.50 0.42 0.55 0.37 0.66 0.58 0.58 0.58 0.58 0.47 0.62 0.47 0.47 0.58 0.58 0.23 0.20 0.31 0.31 0.25 0.25 0.31 0.29 0.36 0.31 0.31 0.33 0.25 0.31 Charles Worthington John Freida Nicky Clarke Umberto Giannini Tony & Guy Trevor Sorbie Lee Strafford Conditioner I/O Conditioner Brand Max Average Min 3 for 2 GWP GWP On-Pack On-Pack Price Price Price (max) (min) Coupon Coupon (Max) (Min) 1.70 1.70 1...
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...some of the codes together to form themes (see lecture notes for an example). For the portfolio you will need to provide the written-on transcript and a list of codes and the 2 separate pieces of text you have written (2 & 4) derived from your ideas generated from your reading of the transcript. Research questions: What are young people’s experiences of unemployment? What is job seeking like for young people? What aspirations do young people have of employment? How can we develop better ways of supporting young people while they are unemployed? Some context: The interview is being held a centre where young people aged from 18-24 go after being unemployed for more than 6 months – it is compulsory. They are paid job seekers allowance of around £50-60 per week. They have to attend an induction for 2 weeks and then come into the centre every day to look for work. They are there for 13 weeks. The young person was paid for the interview and...
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...BACHELOR OF BUSINESS (HONS) IN INTERNATIONAL BUSINESS Title : GROUP ASSIGNMENT Submission Date : 21/11/2014 Lecturer : Ms.Hannah Title : GROUP ASSIGNMENT Submission Date : 21/11/2014 Lecturer : Ms.Hannah BBI1214 / BBI1213 ● BUSINESS MATHEMATICS Name : YAZID MUHAMMAD BAJAMAL 110041112 WADAH MOHAMED HAMAD ELNEEL 110039251 MOHAMMED SALEH BAHUBAISHI 110037771 UNAL KAVASTAN 110037858 MONIRUL HASAN 110040569 Semester : 1 Academic Honesty Policy Statement I, hereby attest that contents of this attachment are my own work. Referenced works, articles, art, programs, papers or parts thereof are acknowledged at the end of this paper. This includes data excerpted from CD-ROMs, the Internet, other private networks, and other people’s disk of the computer system. Student’s Signature : _____________________________ SUPERVISOR’S COMMMENTS/GRADE: | for office use only DATE : ______________ TIME : ________________ RECEIVER’S NAME : _____ | Assigment 1 ● Question 1 ● An Invoice of RM 45.000 dated 28/03/2014 with cash discount terms of 2/15, 1/40, n/60. What would be the discount amount if : I. Payment is made on the 10/04/2014 2100x RM 45,000 =RM 900 Discount amount : RM 45,000 – RM 900 = RM 44,100 II. Payment is made on the 1/05/2014 1100 x RM 45,000 =RM 450 Discount amount : RM 45,000 – RM 450 ...
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...Board of Directors Meeting Financial Agenda Topics: 1. Capital Structure: a. A newly formed corporation is attempting to determine the appropriate mix of debt and equity. The initial capitalization goal is $50 million. The capitalization mix alternatives have been narrowed to two: (1) $10 million in debt and $40 million in equity and (2) $30 million in debt and $20 million in equity. Income before interest and taxes will be $8 million. The interest rate on debt is 8% and the income tax rate is 40%. Calculate the net income and return on shareholders’ equity for both alternatives. Explain how this will ratios as well with the idea that the company is seeking to be bought our by a larger corporation. 2. Effective use of Cash: a. Company is considering using discounts to generate more cash flow. b. The Hawthorne Manufacturing Company offers credit customers a 2% cash discount if the sales price is paid within 10 days. Any amounts not paid within 10 days are due in 30 days. These repayment terms are stated as 2/10, n/30. On October 5, 2016, Hawthorne sold merchandise at a price of $20,000. The customer paid $13,720 ($14,000 less the 2% cash discount) on October 14 and the remaining balance of $6,000 on November 4. Use the gross method of accounting. c. Company is sitting on a large amount of receivable but is cash strapped. What options do we have have? Discuss the options and accounting ramifications for each. 3. Accounting for Major Sale: a. Company has major sale with...
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...Barilla SpA Part A Barilla Case Study Phil Kaminsky David Simchi-Levi kaminsky@ieor.berkeley.edu Philip Kaminsky Edith Simchi-Levi Barilla SpA is the world’s largest pasta manufacturer The company sells to a wide range of Italian retailers, primarily through third party distributors During the late 1980s, Barilla suffered increasing operational inefficiencies and cost penalties that resulted from large week-to-week variations in its distributors’ order patterns McGraw-Hill/Irwin © 2003 Simchi-Levi, Kaminsky, Simchi-Levi Exhibit 12 Weekly Demand for Barilla Dry Products from Cortese’s Northeast Distribution Center to the Pedrignano CDC, 1989. Causes of Demand Fluctuations Questions: What exactly is causing the distributor’s order pattern to look this way? What are the underlying drivers of the fluctuations? McGraw-Hill/Irwin © 2003 Simchi-Levi, Kaminsky, Simchi-Levi Transportation discounts Volume discount Promotional activity No minimum or maximum order quantities Product proliferation Long order lead times Poor customer service rates Poor communication McGraw-Hill/Irwin © 2003 Simchi-Levi, Kaminsky, Simchi-Levi 1 Demand Fluctuations Demand Fluctuations The extreme fluctuation in Exhibit 12 is truly remarkable when one considers the underlying aggregate demand for pasta in Italy. What does the underlying consumer demand pattern for pasta look like in Italy? What are the differences and similarities...
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...Street and Skint only exist for the pointless, low-brow entertainment for the careless viewers who enjoy a certain sense of superiority, as these people are being paraded around purely so we can laugh at them then sink back into their comfortable, benefit-free lives with a glass of champagne, unaffected by the struggles portrayed on our TV screens. These programmes find their focus in portraying the lower class, otherwise classified by the media as the ‘underclass’, as nothing more than low life scum who achieve nothing in life but signing on at 18 with no GCSE’s, 7 kids, 3 cats and a state-funded goldfish. This isn’t always the case. Not everyone breeds for a bigger house and more money. There are actually people who claim job seekers allowance who have different interests in life. I bet you didn’t know that these people existed did you? Yet, these programmes don’t show that, they only show the people who adhere to the characteristics of this ridiculous stereotype – adolescent mothers, smokers, drinkers and scruffs. The directors of these appalling programmes are extruding this corrupt idea that these individuals don’t want to work and only aspire to sit on their arses all day overindulging on crap, watching TV with a ‘tinny’ and spending our tax money. But what about the people who do aspire to be something? The people who don’t simply sit around wasting their lives and large chunks of the tax payer’s money, the people who actually try to find jobs, but whom don’t succeed because...
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...misapplication of capital investment appraisal techniques Colin Drury Professor, University of Huddersfield, Huddersfield, UK Mike Tayles Lecturer, University of Bradford, Bradford, UK Surveys of capital budgeting practices in the UK and USA reveal a trend towards the increased use of more sophisticated investment appraisals requiring the application of discounted cash flow (DCF) techniques. Several writers, however, have claimed that companies are underinvesting because they misapply or misinterpret DCF techniques. Such claims have been made on the basis of observations in only a few companies, or anecdotal evidence, without any supporting statistical evidence. Reports on a recent survey conducted by the authors which suggests that many UK firms are guilty of misapplying DCF techniques. Also provides evidence relating to some issues that have not been thoroughly examined in previous studies, namely the impact of company size and the relative importance that firms attach to different investment appraisal techniques. An examination of the surveys of capital budgeting practices that have been undertaken during the past 20 years in both the UK and USA reveals a trend towards a continuing increase in the use of more sophisticated capital budgeting techniques. In a longitudinal survey of capital budgeting practices of large UK companies between 1975 and 1992 Pike (1996) reported a substantial increase in the usage of discounted cash flow (DCF) and risk appraisal techniques. In 1975 32 per cent and...
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...CouponUp.com is the best Social Buying Network! I’ve encountered a lot of good social buying sites, but I would say that CouponUp.com is the best because from the moment I entered the site up to the time I redeemed my coupons, everything is going smoothly. Based on my personal experience, I can say that, CouponUp makes my shopping experience more fun, because it offers the perfect combination of usability and convenience. What I like most about CouponUp is that, it offers excellent deals without hassle. Another good thing about this site is that, the latest deals, coupons and promos are updated throughout the day. CouponUp.com has excellent features that allowed me to navigate the site and find the coupons according to product category, store or product that I want I can do this with great ease. Aside from that, the site allowed me to save some of my money because they always offer great deals that aren’t expensive. Since most of the time I shop online, I love how CouponUp links itself to the current promos of popular sites. I am also enjoying the convenience of using the so-called coupon codes to support my online transactions. If you’re like me, who is always looking for quality products yet the price isn’t really expensive, then CouponUp.com could also be your best-buddy when it comes to shopping; this site help us get the best promos that are available every day. CouponUp.com has been my best shopping partner; the coupons that it offers allowed me to get discounts...
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...Restrictions This offer is valid online only and cannot be combined with any other coupons, discounts, or promotions. Gift Cards/Certificates purchased from this Merchant do not apply unless stated otherwise. Savings will only be delivered when you purchase through the link provided on this page. If you visit this Merchant through other websites prior to your purchase, you will not receive the program savings. Tax and shipping costs do not apply to this offer unless stated otherwise. Points will be credited within 1 billing cycle after a valid purchase in accordance with the terms of this offer has been completed and verified. You may lose your savings when you return purchased item(s). Redemption Information: Online[?] Reward: 8 WOWPoints per $1 Spent THANK YOU FOR VISITING FROM YOU FLOWE... If you completed a purchase: You'll be rewarded with 8 WOWPoints per $ spent. Average Reward at this store: 424 WOWPoints You can expect a WOWPoints confirmation email within 2-3 days of purchase Restrictions This offer is valid online only and cannot be combined with any other coupons, discounts, or promotions. Gift Cards/Certificates purchased from this Merchant do not apply unless stated otherwise. Savings will only be delivered when you purchase through the link provided on this page. If you visit this Merchant through other websites prior to your purchase, you will not receive the program savings. Tax and shipping costs do not apply to this offer unless stated...
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...Case 1 -- Requirements. CCPC is considering how it should account for the Fresh & Bright coupon drop that took place on October 1, 2009. In doing so, CCPC asks for your help. Prepare a memo addressing the following questions. Base your analysis of the following questions on the relevant authoritative literature and discuss the support in that literature for your conclusions. Be sure to cite the relevant components of the Codification in your discussion. Citations are not required for journal entries. 1.What are the accounting issue(s) and the relevant components of the authoritative literature? 2.When should CCPC recognize the effects of the Fresh & Bright coupon drop in its financial statements? 605-50-25-3 25-3 For a sales incentive offered voluntarily by a vendor and without charge to customers that can be used or that becomes exercisable by a customer as a result of a single exchange transaction, and that will not result in a loss on the sale of a product or service, a vendor shall recognize the cost of such a sales incentive at the later of the following: a. The date at which the related revenue is recognized by the vendor b. The date at which the sales incentive is offered (which would be the case when the sales incentive offer is made after the vendor has recognized revenue; for example, when a manufacturer issues coupons offering discounts on a product that it already has sold to retailers). From FASB principle, CCPC should recognize...
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