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Corporate Finance
Corporate Finance Principles and Practice
114 SOLVED PROBLEMS
Question: 6.EX.4
Calculation of internal rates of return Clement plc is evaluating three investment ...
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Project A In the previous example we found that (a...
Question: 7.E.X.4.1
Application of sensitivity analysis Swift has a cost of capital of 12 per cent and ...
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The relative change in each project variable neede...
Question: 7.EX.3.4
NPV calculation involving inflation Thorne plc is planning to sell a new electronic toy ...
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Depreciation is not a cash flow: we must deduct it...
Question: 7.EX.2.4.1
NPV calculation involving taxation Bent plc is considering buying a new machine costing ...
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The capital allowances were calculated in Table 7....
Question: 9.EX.4.4
The CAPM in the investment appraisal process Arclight plc, a company producing high- ...
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1 Ungearing the proxy companies’ equity betas to g...
Question: 10.EX.4.3
Calculation of share price using the dividend growth model Shareholders require a 15 ...
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We need to estimate the dividend growth rate, g. O...
Question: 5.EX.9
Evaluation of equity finance versus debt finance PXP plc is a listed company that has ...
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The post-acquisition market value of PXP, ignoring...
Question: 6.EX.3
Calculation of the net present value Clement plc is evaluating three investment ...
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Project A The cash inflows of this project are ide...
Question: 6.EX.2.1
Calculation of the return on capital employed Carbon plc is planning to buy a new ...
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\begin{array}{lc}\text{For Machine 1:} &...
Question: 5.EX.8
Evaluation of leasing versus borrowing to buy DDX plc is trying to decide whether to ...
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As leasing is an alternative to borrowing, the rel...
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