Premium Essay

Grand Metro

In: Business and Management

Submitted By coup0307
Words 489
Pages 2
The pound-based WACC for Grand Met is 12.81%, while its dollar-based WACC is 11.01%

1.748 (1.027/1.043) = 1.721185  Spot rate, expected exchange rate. This shows that the dollar is appreciating in relation to the pound. This is expected as inflation is expected to be higher in the UK. This also explains the differences in the WACC between the two countries. In order to preclude arbitrage opportunities and account for difference in inflation rates, pound-based WACC has to be higher than the dollar-based WACC.

3. As is mentioned in the case, in the footnotes on page 6, the betas for the US and UK markets are mirrored in the betas for Grand Met in the two countries. The market volatility in the US is 4% lower than the market volatility in the UK. The difference in standard deviation of returns is factored into the country’s betas, which in turn is factored into the Grand Met beta calculations. In addition to that, we are told that there is perfect correlation between the two markets, which means they move together. The difference in the betas, then, reflects the way investors approach risks: it seems that the UK investors are more risk averse than the US investors.
Additionally, we think that the differences in risk free rates in the two countries contribute to the different betas and different perceptions of risk between the US and UK investors. While the risk free rate in the US is 7.83%, the risk free rate in the UK is 9.6%. Because investors receive a higher return on their risk free investments, they demand higher returns on other investments, to compensate for risk.

4. We decided not to use all the comparable companies provided in the case, because we find some to be inappropriate for comparison. There was not one single company, however, that identically mirrored each division. Because of that, our beta for each division is an average

Similar Documents

Free Essay

I Duno

... | |Prof. Mirna L. Arroyo Miranda, JD, DrPHs-III | | Prueba de conocimiento (Take Home) I. Resuelve los siguientes problemas: 1. María tenía catarro y fiebre. El medico le recomendó que tomara cuatro decilitros de agua clara. Indique: a. ¿Cuántos LITROS de jugo de china debe tomar? b. ¿Cuántas ONZAS de jugo de china debe tomar? 2. José y Juan están haciendo una competencia de aviones de papel para ver cuál de los dos puede volar más alto. El avión de José voló 4 metros. El avión de Juan voló 79 cm. ¿Cuánto más voló el avión de José? 3. Un grupo de POPAC quiere viajar de Ponce a Rincón para ir de surfing. Para saber cuánta gasolina necesitan, ellos calcularon que el viaje será de 75 Km de distancia. Indique: a. ¿Cuántos metros de distancia dura el viaje? b. ¿Cuántas MILLAS viajarán los estudiantes? 4. Para preparar una masa de pan de 2 libras, necesito 1.75 Kilogramos (Kg) de harina de trigo. Indique: a. ¿Cuántas LIBRAS de harina necesito? b. ¿Cuántos kilogramos de harina necesito para preparar una masa de pan para 18 libras. (Nota: resuelva usando lo aprendido sobre razones y proporciones.) 5. Se necesitan 4 decilitros de solución salina para limpiar una máquina de terapia respiratoria en un hospital X. ¿Cuántos decilitros de agua necesitaría para limpiar 4 máquinas...

Words: 322 - Pages: 2

Free Essay

Sdsd

...Ayudantía N°4: Molienda Ayudante: Javier Muñoz Fecha: 5 de mayo, 2011 Conceptos Generales Ley de Bond: Densidad Aparente: Modelo de H&F: Ejercicio 1 La operación de un molino de bolas convencional en una planta de concentración de Cu presenta los siguientes parámetros operacionales: Tasa de Producción Horas Operacionales Consumo Promedio de Energía Tamaño Alimentación (F80) Tamaño Producto (P80) 150.000 660 2.000.000 13.000 180 Ton/mes Hrs/mes KWh/mes µm µm Se espera que en el siguiente período, el tamaño de la alimentación sea más grueso alcanzando un tamaño de 26.000 µm. Para no afectar la recuperación del proceso de flotación, se debe mantener el tamaño objetivo del producto de la molienda. a. Asumiendo que el molino trabaja siempre a su máxima potencia y que el índice de molienda de Bond se mantiene constante, ¿Cuál es la variación porcentual en la tasa de producción de mineral producto del cambio en la granulometría de alimentación? b. ¿Cuál es el impacto económico en términos de ingreso bruto? Asuma un precio de venta de 4 US$/lb de Cu, una recuperación de 90% y una ley de cabeza de 1% de Cu. Solución: a. Para el caso 1, en que el tamaño de la alimentación es 13.000 µm, usamos la ley de bond: De aquí podemos obtener el índice de molienda de bond: Por enunciado nos dicen que el índice de molienda se mantiene constante, por lo tanto, será el mismo para el caso 2, en que el tamaño de la alimentación es de 26.000 µm. Podemos entonces obtener el nuevo...

Words: 563 - Pages: 3

Free Essay

Policing of America

...There are three amendments to the United States Constitution that are directly related to police and the American people. The Fourth, Fifth, and Sixth Amendments cover probable cause, exclusionary rule, arrests, search and seizure, electronic surveillance and lineups; confessions, interrogation, and entrapment; and the right to counsel and interrogation respectively (Peak, 2012). The goal of the Fourth Amendment is to protect the people from the police illegally performing searches and giving the court system and other agencies the power to protect an individual’s rights and privacy. The Fifth Amendment is most known for giving the people the power to avoid self-incrimination and protecting ones right to remain silent in accordance to the Miranda rights. The Sixth Amendment gives the people the right to counsel during interrogation and at trial whether they can afford the attorney or not they are entitled to representation. With the Amendments in mind and the rights of individuals protected some may argue that the work police can do is limited but with the safeguards in place for not only protecting those suspected of criminal activity the laws and policies protect the police as well. When my nephew was 15 he and a friend were shooting at cans with a bb gun and got the not so bright idea to shoot an aerosol can of hairspray the can exploded and shrapnel cut my nephew’s best friend very badly. When the boys got to the emergency room the hospital called the police because...

Words: 897 - Pages: 4

Free Essay

Marketing Strategy

...Lapodium Logistics Int’l Inc. Room 601, Roman Santos Bldg., Plaza Lacson, Sta. Cruz, Metro Manila1003 Philippines November 26, 2013 ASSAM Corp. Unit 1204, 139 Corporate Center Valero St. Salcedo Village Makati City . Attention: Mr. Jake Tansanco Subject: Standard FCL Quotation (1x20’ or 1x40’) Dear Sir: We would like to inform you the following charges: From Customs to Delivery |Measurement: Gross Weight : | |Duties, Taxes & Other Charges | |As per Computation | |Brokerage Fee with Vat | |As per CAO 1-2001 | |Processing | |1,000.00 | |Documentation | |500.00 | |Releasing | |500.00 | |Handling | |500.00 | ...

Words: 285 - Pages: 2

Premium Essay

Etouch

...Suppliers Directory Page 1 of 37 Philippine printing industry news information wilfredo ileto Join the FILIPINO PRINTERS FORUM October 19, 2009 The Online Magazine for the Philippine Printing Industry Home About Us Forum ► Suppliers Directory Binding ● Blade Sharpening ● Coating and Lamination ● Diecutting ● Digital Printing Equipment and Supplies ● Foil Stamping ● Ink ● Machine Shops and Parts ● Paper Dealers ● Paper Manufacturers and Indentors ● Plate Graining ● Prepress Services ● Printing Machineries and Equipment ● Printing Supplies ● Roller Fabrication and Rebonding ● Trucking and Hauling Binding Name APO PRODUCTION UNIT, INC. CITIBIND CORP. CRUZ PAPERCRAFT BOOKBINDERS EASTERN BOOKBINDER MANUFACTURER E C N BOOKCRAFT BINDERY EDUCATIONAL TEXTBOOK CORP. EMPRESSO CREATIVE COMPANY FILIPINO PRESSTECH BINDING SERVICES FLORES BOOKBINDING SERVICES GTR BINDING SERVICES KAYUMANGGI PRESS, INC. KISHU PLASTIC MANILA BOOKBINDING SERVICE PAPER PRINTS, INC. PRIMEX PRINTERS S BINDING SUPPLIES, INC. QUALITY BO0KBINDING VICTORIA BOOKBINDING & SILKSCREEN PRINTING ZURBANO PUBLISHING (PERFECT BINDING) ▲back to top Telephone / email 9281591 to 95 apo@i-manila.com.ph 8903013; 8960852; 8992825 citibind@info.com.ph 9281926; 4530608 cruzpapercraft@yahoo.com 3611139; 3614349 5250506 92870651; 3723724 3743789 ; 4121378 4345873; 5155603 filpresstech@gmail.com 3748927 7298832 4120128 8959937 7315084 8968876 ; 8968882; 8962179 Paper_prints@abc.net.ph 5332866; 5338704;...

Words: 4756 - Pages: 20

Premium Essay

Re Bubble

...PHILIPPINE REAL ESTATE BUBBLE A Demand and Supply Analysis _______________________________ By ANTONETTE ANGELINE ALBAN WILFRED JEROME LEJANO KENNETH RAY QUINTANA ARA LAIZA ROLDAN In partial fulfilment of the requirements for BA201 ECONOMIC ANALYSIS First Trimester 2015 - 2016 Submitted to JOEL C. YU, Ph.D. University of the Philippines Cesar E.A. Virata School of Management OUTLINE I. Introduction a. Statement of the Problem ............................................................. b. Background of the Study and Market Trends ................................ 1. 1997 Asian Financial Crisis 2. The Late 2000 US Property Bubble 3. Real Estate Market Trends II. Analysis of the Philippine Real Estate Industry………………………………….. III. Conclusion ............................................................................................ IV. References………………………………………………………………………………………… Annex A. Major Industry Players Annex B. Further Developments by the Major Industry Players Annex C. Present Global Situation 2 I. INTRODUCTION A. Statement of the Problem The purpose of the study is to determine if there is an impending property bubble in the Philippines, citing current indications similar to the 1997 Asian Financial Crisis and the US Property Bubble in the late 2000, as well as comparisons with the general real estate market trend. B. Background of the Study and Market Trends 1. 1997 Asian Financial Crisis...

Words: 4989 - Pages: 20

Premium Essay

Singer

...of which was in Eat Bulaga! at age eleven. She rose to fame when she emerged as the Grand Champion of the reality talent search Search for a Star in 2004.[1] She has been managed by VIVA Artist Agency. In July 2004, Go released her self-titled debut album with the singles "Love of My Life" and a remake of "Don't Cry Out Loud". It also includes her own cover version of Selena's "Dreaming of You". Since then, she has headlined concerts locally and internationally, recorded seven albums, which became certified gold and double platinum records. Go is recognized as an international award singer, having won the Silver Prize award for her song, From The Start, at the Shanghai Music Festival 2005 and Best Own song, Isang Lahi, at the Astana International Song Festival 2005 in Kazakhstan. Go has performed in musicals as well: her debut in The Little Mermaid, playing as the role of Ariel during 2011 - where she won a Best Actress award from Broadway World Philippine Awards; and another in 2013 for Tarzan, playing as the role of Jane Porter. Go's theater career continues as she was cast for the 2014 West End revival of the hit musical Miss Saigon, for the role of Gigi Van Tranh.[2] Following this, She was cast for the 30th anniversary staging of "Les Miserables" to play the role of Fantine.[3] Birth name Rachelle Ann Villalobos Go Also known as Shin Born August 31, 1986 (age 29) Pasig City, Metro Manila, Philippines Origin Manila, Philippines Genres Pop R&B broadway Occupation(s)...

Words: 423 - Pages: 2

Free Essay

Goldilocks History

...Goldilocks: From family fairy tale to global phenomenon When Filipinos think of Goldilocks, a curious blonde girl and her three bear companions are not usually what come to mind. For Filipino families around the world, Goldilocks is more than a character in a fairy tale, but is a delectable and cultural fact of life. The most famous and largest bakeshop/restaurant based in the Philippines is expanding beyond the book to better serve its loyal and growing customers. For nearly 50 years, Goldilocks has provided unique, quality Filipino meals and baked goods to thousands worldwide. With eight locations in Northern California, three in Southern California, and one in Las Vegas, Goldilocks is known to Filipino communities all over the West Coast. It has also made its mark as a global brand, selling goods and products to markets internationally, including Asia and Canada. Today, the company continues to reach out to its growing customer base at home and abroad, while sticking true to its Filipino roots. “Fairy tale” beginnings The story of Goldilocks began where most fairy tales start: with family. In 1966, two close half-Filipino/Chinese sisters, Milagros Yee and Clarita Go, and their sister-in-law, Doris, were baking sweets in their humble Makati City apartment to provide for hospital patients and family friends, who were their first dedicated customers. Nicknamed “The Two Moms,” the sisters were known for their ambitious work ethic and special homemade recipes—especially...

Words: 7129 - Pages: 29

Premium Essay

Gwqeyggh

...Metro Manila Chapter                                                                    ROSTER OF MEMBERS A. COMPANY MEMBERS 1. A & A MAQUINAS FERRAMENTAS CORPORATION Unit 406 Chunics Bldg.3368 Ramon Magsaysay Blvd. Sta. Mesa, Manila T – 715-8756 * 714-9421 Fax : 715-8756 E-Mail : aaequipment@tri-isys.com Member since: August 2006 Representative: RICARDO LUMBRE, JR. President& General Manager MARYLENE LUMBRE, Treasurer PRODUCT LINES/SERVICES Trading, Machineries for metal sheet fabrication, Design softwares Accessories fro electrical and industrial enclosures/Metal pannel accessories   2. ABCOR INDUSTRIAL CORPORATION No. 6 Fatima Lane, La Milagrosa Village Marikina Heights, Marikina City Metro Manila T – 941-2515 Fax: 941-0073 E-Mail : abcor_ind_corp05@yahoo.com.ph Member since: August 2001 Representative: JOSEPH ALAN T. ABRENICA Production Manager PRODUCT LINES/SERVICES Motorcycle parts / automotive components/ assembly of wire house racks Fabrication & Machining of tooling Requirements like Copper, Welding Tip & Crimping Tools for the Electronics Industry 3. ACME TOOLS MFG. CO., INC. 105 E. Delos Santos Avenue Mandaluyong City, 1554 Metro Manila T – 531-4906 * 531-5458 Fax: 532-1037 * 531-3968 * 534-5231 E-Mail : acme.ohco@quickweb.com Member since : October 1988 Representative: ALBERT YU General Manager PRODUCT LINES/SERVICES Manufacturer of bolts and nuts, forging & cutting tools 4. ACT MACHINERIES & METAL...

Words: 5218 - Pages: 21

Premium Essay

Smdc History?

...I. Introduction A. Real Estate Industry (World & Philippine) Real estate refers to land, as well as any physical property or improvements affixed to the land, including houses, buildings, landscaping, fencing, wells, etc. Vacant land and residential lots, plus the houses, outbuildings, decks, trees sewers and fixtures within the boundaries of the property are examples of real estate. There are a variety of ways to invest in real estate, ranging from real estate investment trusts (REITs) to buying rental property or multi-family housing. For investors turned off by the idea of fixing plumbing and dealing with tenants, REITs offer the opportunity to participate directly in the ownership or financing of real estate projects. REITs are tradable interest (much like a share of stock) in a pool of real estate-related assets. REITs own, and often operate, income-producing real estate such as office buildings, apartments, shopping centers, warehouses and hotels. Many REITs specialize in one property type, such as offices, apartments or regional shopping malls. Most investors buy REITs for their rich dividends, although those dividends are usually fully taxable. Keep in mind, though, that each real estate sector is affected by different economic cycles. Larger, diversified, or geographically dispersed REITs are less exposed to regional weakness and major economic cycles. On the other hand, smaller, more specialized REITs often provide the greatest growth potential. In addition...

Words: 1888 - Pages: 8

Premium Essay

Fgsgdw

...CHAPTER 1 The Problem and Its Setting Introduction Bachelor of Science in Accountancy (BSA) has been one of the most in demand courses in the Philippines nowadays. Last May 2015, the Professional Regulation Commission (PRC) announced that 2,132 out of 5,959 passed the Certified Public Accountant Licensure Examination given by the Board of Accountancy in the cities of Manila, Baguio, Cagayan de Oro, Cebu, Davao, Iloilo and Legazpi. In order to meet this demand, universities and colleges must create a program that would meet the standards and retention in the BSA program. Admission to the BSA program should be restricted to students who can demonstrate a high probability of success in the study of accounting through satisfactory academic performance, a qualifying examination, an interview, and/or other appropriate means. The school is given the privilege to require standard admission requirements to the program as reflected in its manual of regulations for students (CHED, 2007). The Accountancy program is presently known for its tough retention policy which becomes a challenge to prospective students. A retention policy is a set of guidelines in which a certain school follows a minimum grade for accountancy students in order for them to advance in the next level. Today, retention policy is a common practice in most colleges/ universities. With the increasing pressure to meet the minimum proficiency level, students who are developmentally unprepared to handle the curriculum...

Words: 2102 - Pages: 9

Premium Essay

Oppa Jib Filipino-Korean Restaurant

...Proposed Tourism Development in: _______Intramuros______ TM09306: Tourism Planning and Development __________________________________________________________________Final Report ABSTRACT A historical place called Intramuros that is once a center for government religion and military superiority during the Spanish era, During the time it was called a walled city because of the tall walls that covered all over the place. But during the 2nd World War it was heavily damage due to bombings and also, the Japanese used it for their prison barracks. This paper shows the profile of the case study area which consist of Geographic Characteristics, Socio-economic, and Political profile. This explains the current status of Intramuros in terms of population, environmental quality, economic condition, and the educational institutions in the area. Political profile is one of the most important factors to consider since the government is the one who gives financial support to accomplish certain projects or plans. The city of Intramuros has many things to offer. Even if it is not blessed with natural and archeological resources, the “walled city” is rich in history and culture that plays a major role in preserving our heritage and national identity since, it is easily overlooked by many Filipinos. In order to know the strategies that we are going to utilize and to come up with our group’s goal and mission, we use Strengths, Weaknesses, Opportunities and Threats Analysis...

Words: 9807 - Pages: 40

Free Essay

Daddasdsadasd

...Christmas Day fires in Philippines MANILA, PHILIPPINES, December 25, 2012 Authorities in the Philippines say at least eight people are dead after two separate Christmas Day fires in the capital region. One of the blazes left about 1,500 people homeless when it razed their shantytown. Arson investigator Rosendo Cabillan says a pre-dawn fire on Tuesday razed two apartment buildings in Quezon City, a Manila suburb. A veterinarian and six household members died after they were trapped inside. Fire officer Noel Binwag says another blaze in suburban San Juan city hours earlier destroyed shanties of about 1,500 people. http://www.thehindu.com/news/international/8-dead-after-christmas-day-fires-in-philippines/article4238380.ece 3 Fires Hit Metro Manila March 19, 2012 MANILA, Philippines — Two fires hit residential areas in Quezon City and San Juan the other night.A fire hit a residential area in Don Antonio Heights, Quezon City. The fire reportedly started at 10:15 p.m.Rudy Padirao, 37, sustained burns on both arms as he went back inside their burning house to salvage some of their valuables. Witnesses told fire probers that the injured victim and his family had already exited their house safely but went back inside.Some 25 houses were destroyed by the fire which reached the 5th alarm and was placed under control at around 10:30 p.m. As a result, 75 families were rendered homeless. Firemen were told that a lit candle that was placed at an altar might have caused the fire.They...

Words: 3221 - Pages: 13

Free Essay

H.K Questionaire

...HOUSEKEEPING DEPARTMENT INTERVIEW QUESTIONS: 1. When can you start working? ___________________________________________________________________________________________________________________________________________________ 2. What are the key components of housekeeping? ___________________________________________________________________________________________________________________________________________________ 3. Are you good at multitasking? ___________________________________________________________________________________________________________________________________________________ 4. How would you handle a client who was angry or upset about something? ___________________________________________________________________________________________________________________________________________________ 5. How comfortable are you with chemical safety procedures? ___________________________________________________________________________________________________________________________________________________ 6. Can you give me some examples of health and safety procedures you have used? ___________________________________________________________________________________________________________________________________________________ 7. What types of procedure tracking systems have you used? ___________________________________________________________________________________________________________________________________________________ ...

Words: 1567 - Pages: 7

Free Essay

Levels of Acceptability of Using Paper Bags by Selected Vendors in the Market of Sta. Rosa, Laguna

...Chapter I THE PROBLEM AND ITS BACKGROUND Introduction The industry of retailing is said to be the largest industry in the Philippines. We can safely assume that retail stores make up a huge share of employment, product and services, publicity and sales. Retail paper and plastic bags are common packaging tools in the market but due to environmental issues and the public’s awareness more people are decided to use retail paper bag instead of plastic. Paper bags are used for many things, to put up lunches for kids, to bring in the groceries, to take out the trash, to hold the things and help us stay organized. Many markets have switched from plastic bags to paper bags. Paper bags are less expensive. Cost Effectiveness is one of the reasons why they prefer paper bag other than plastic bag. Many vendors and consumers have complained about using plastic bags to put their goods. Some market and grocery stores now give a choice between paper bags or plastic bags. Some Smart shoppers choose to use paper bags instead of plastic assuming that it is an environmentally friendly and better alternative. Paper Bags are usually made up of plant fibers substance from fibrous cellulose materials as rags, woods, or barks. Paper bags were invented in the 1850’s. Paper bags are recyclable. Well known grocery stores, supermarkets, fast food chain, establishment and markets uses brown paper bags to hold their...

Words: 5582 - Pages: 23