Notes: FIN 303 Spring 09, Part 7 – Capital Budgeting Professor James P. Dow, Jr. Part 7. Capital Budgeting What is Capital Budgeting? Nancy Garcia and Digital Solutions Digital Solutions, a software development house, is considering a number of new projects, including a joint venture with another company. Digital Solutions would provide the software expertise to do the development, while the other company, American Financial Consultants (AFC) would be responsible for the marketing. Nancy Garcia
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Introduction Making financial decisions involves balancing risks and profitability. Financial management is the operative way for a firm to organize and control financial resources of a firm in order to exploit profitability and ensure liquidity for a company. The three types of financial management decisions are capital budgeting, capital structure, and working capital management. It is important that the decisions being made in regards to financial management be concise, educated, and understandable
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outstanding. What is your estimate of the current price per share? 3. a) Klose Outfitters Inc. believes that its optimal capital structure consists of 60% common equity and 40% debt, and its tax is 40%. Klose must raise additional capital to fund its upcoming expansion. The
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INTI INTERNATIONAL UNIVERSITY COURSE STRUCTURE Programme: BACHELOR OF BUSINESS (HONS) 1. | Name of Course/Module : FINANCIAL MANAGEMENT | 2. | Course Code: FIN2210 | 3. | Rationale for the inclusion of the course/module in the programme :To provide students with a fundamental understanding of financial management principles and exposure towards analysis and application of finance principles.This course aims to enable students to: 1. Introduce with the various aspects of
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STUDY NOTES FOR GFOA BUDGETING EXAM A. SOURCE: LOCAL GOVERNMENT FINANCE – CONCEPTS & PRACTICES Chapter 4 – Operating Budgets: A budget can be a process, a document, an accounting ledger, a plan, or a system. Local gov’t budgeting process unique – product of geographical, historical, economic, political and social factors peculiar to that jurisdiction. Budgeting is a unified series of steps to line and implement four functions: ❑ policy development – as policy instrument
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Executive Summary Reckitt Benckiser Bangladesh Ltd is a leading player in the FMCG market of Bangladesh with a focus on Health, Hygiene & Home. Making differencing from conventional playing company in Bangladesh Reckitt Benckiser has strong intention for modern developed capital budgeting technique in evaluating their potential projects especially in large R&D projects. The company mainly uses IRR. It uses sophisticated methods to project future cash flows. The company also uses scenario
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Capital budgeting Making decisions having significant future benefits or costs for various entities and their stakeholders. Capital budgeting is the backbone of financial economics. Related topics in financial economics include: the time value of money, the meaning of net-present value, accounting concepts consistent with present-value calculations, discount rates, and option valuation techniques. In the public sector, the term is often exclusively associated with infrastructure investments
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accounting, such as cost behavior and budgeting. The course covers accounting theories using computational examples, and homework is problem solving. 4 FIN-504 Finance Principles This course is designed for individuals who are preparing for more advanced coursework in accounting and is designed for students who have not had finance in undergraduate work. Topics covered include financial analysis, financial planning, asset evaluation, capital structure, and working capital management. 4 SYM-506 Applied
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CAPITAL BUDGETING DECISION 1. Meaning Capital budgeting denotes situation where funds are invested immediately and returns are expected after a year. In growing orgnisation capital budgeting is more or less continuous process and it is carried out by top management. The role of any Finance Manager is to critically evaluate proposal, evaluation of alternative proposal and select best one. The following are the some of the cases where heavy capital investment may be necessary. A) Replacement
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CHAPTER 1 Introduction Copyright ©2008 The McGraw-Hill Companies, Inc. All rights reserved. Overview bro13556_ch01.indd 1 The primary objective of an experiential learning simulation game, such as FinGame Online 5.0 (FG), comes from learning how to plan, formulate strategies, and make sets of sound decisions sequentially through time. FG provides a decisionmaking setting similar in many respects to the financial management requirements of an actual company. The manager of an FG
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