pronciplos of corporte finance......

In recent year classified advertising has become a major competative, battle ground for newspapers. Competition, for classified advertising constitutes one of the most serious financial threats to the newspapers….

 

To understand the pro

 

Frequency and volume discounts, The one open rate of $32800, some

 

Time rate of $29,750/- = ( 5 x 29750) = $ 148,750,

Time rate of $ 32800 = (5 x 32800) = $ 164,000/-

Short rate due ( $164,000- $148,750) = $ 15,250/-

 

 

 

CPM = Cost/page = $ 32,800  = $ 49.69

           -------------       -------

                                    660

 

computing the Brand Development Index

 

$ 240,000

   160,000

    120,000

 

1 page Auugsti liser magazine    $10,000/-

Agency commission,                             $1500

Balance due                                          $8500/-

 

Cash Flow =  revenue- operating cost =180-70=110 or $110,000/-

 

Cash inflow = net income + depreciation = 30+ 80= $ 110,000/-

 

 

If the curr3ent stock price is $40, what is the market capitalization rate ?

 

Stock is expected to sell, at $110. if Claudia has left you, $ 50,000/-cahs, …

 

These are not big investments,  ( $ 5000 here and $40,000 there )…but they add up…

 

Residual inceome, =130+ ( 12 x 1000, ) = + $ 10 million,

 

Economic profit = EP = (ROI-r ) x Capital Invested

                                    = (0.13 – 0.12 ) x 1,000 = $ 10 millions….

 

 

EVA =  33-(0.10 profit and loss figure, ……..$ 9000/- $ 9000, after the  payment….

 

$10,000 + NPV = $12,000/-  $12,000/1000 $11000 /1000=$11

 

The expected earnings, and dividend per shareare $1.50, but this figureis b…..

 

Some assets, like good commercial real estate, can pass through bankrupcyand re-orgnization….

 

 

Third even if the firm were willing and able to lever up to 90 percent debt, its cost of cpiatl would not decline to 6.2 percen ( as Q’s navie calculation predicts, ), you cannot increase the debt ration without creating financial risk for stockholders, and thry by increasing re the expetcte rate of return, they demand front h firms common stockgt going to 90 percen tdebt would cerntialy incewse4 bthe borrwoeing rate,too..

Movinr from 40 to 20 percendebt financeing rof rtht firsm as ahwohel ekWACC ec cthe tax rate, but ht cos t of equity re is less because fianceical risk reduced the oocst ofeb tmay be lowe too.. this the exted rate of retun that invstorswould wanfg ftorn ththproject ift iwer all eauty finaces,

 

Opportunity cos of the capital = r =rd D/v + Re e/v…

 

If the firm invist it has to raise $50,0000 by stock issue . Issu coas tar 15 percent of net proceeds.

 

The present value of the subsidy is $175,000. 455-6.55=$48.45…

 

If the public is doing homework, good, Alhamdulilah, not doing…well public the retailer will never ever trust you, here, Alhamdulilah, cos none of them is doing h/w daily, Alhamdulilah….they wont keep trying, Alhamdulilah, [end of time book is evident, Alhamdulilah…cos they have not done thirty plus years of there prayers h/w’s, Alhamdulilah…assume scholars, Alhamdulilah, they have done there prayer h/w and quran also, Alhamdulilah, but what about hadiths, Alhamdulilah…its useless trying talks, Alhamdulilah,..how many workers here do there daily homeworks, Alhamdulilah…none, Alhamdulilah,….actullaty the labor here has got freehand, Alhamdulilah, they do what they like, Alhamdulilah, the residents do homework, and the un-educated labor, they even don’t know few surahs of quran,Alhamdulilah and you are all talking, the un-educated labor is self fulfilling its baitful desires here, Alhamdulilah, they try to make sure a good boy comes in there net, Alhamdulilah, and they get a good account, Alhamdulilah……they have full freedom, here, Alhamdulilah, like a village, Alhamdulilah,… they have power / influence/ they can put a bait for any boy/etc in the block, Alhamdulilah…they can do thefts, no one asks backs, Alhamdulilah…the maid here has full privacy, Alhamdulilah, can call any outsider in big places and etc etc etc…while the residents are tryin g to keep an eye on theier boys, Alhamdulilah,… maids here have full power, Alhamdulilah, and the Hadith, Alhamdulilah, the maid of here, is ruling the feminst world, Alhamdulilah….pg 15, End of time, ( book) Alhamdulilah…the uneducated male labor here gets what he desires, Alhamdulilah, this is village, Alhamdulilah, the un-educated are ruling, Alhamdulilah, cos they have got all of us our  the weakness, Alhamdulilah..[ unmanageable 2000/- yards, Alhamdulilah..) when the residents are out, Alhamdulilah, they can do anything they like in the home of residents, Alhamdulilah…private resorts, for free, Alhamdulilah,…live in servant quarters all day, Alhamdulilah, and do what you like, Alhamdulilah…..even the religuyos educated boys, are getting nailed by them, Alhamdulilah…..freedom /desire /they do what they like, all day in the homes, Alhamdulilah, they do not pray, Alhamdulilah, they eat, work, and enjoy, Alhamdulilah. And they have power over the men of the houses, Alhamdulilah, even the educated mothers, are unable to control them, Alhamdulilah, the male lobor is working hard, Alhamdulilah, and here the female maid is having a time of life, Alhamdulilah, …[ till the day these house/s remain resort, Alhamdulilah, ….here the uneducated boys of other blocks,  have access to what ever they like, Alhamdulilah…, Alhamdulilah, a private date room [ block] for the un-educateds, Alhamdulilah.. in many homes, Alhamdulilah, the maid and the labor have committed sins,Alhamdulilah, over the thirty years, Alhamdulilah…..they are not bothered what the family fights about, Alhamdulilah….evne the uniform boys are unable to manage them, Alhamdulilah, if you keep an eye on one, Alhamdulilah the other leaves the next door, Alhamdulilah…boys go for prayers, Alhamdulilah, and behind there backs, Alhamdulilah, forget what happens, Alahmdulilah…… while the educated parents, Alhamdulilah, are thinking there kids are committing crimes etc…Alhamdulilah,…its actullay the uneducated maid and his outside lover story, Alhamdulilah…and who is getting punished, Alhamdulilah… etc etc etc…