Business finance Assignment Example | Topics and Well Written Essays - 1500 words

Business finance - Assignment Example This imposes limitation on the company to use Australian Tax though major shareholders are non-Australian. OZ – Seafood Limited, according to the Australian Tax law, is classified as Category 1 Company. Company’s capital budgeting projects should be undertaken on pre – tax basis, as recommended by the Australian Tax Regulation . Question b: Over how many years should Oz-seafoods’ capital budgeting evaluation of the polystyrene container manufacturing proposal be undertaken Answer: Machinery for manufacturing polystyrene containers has 10 years operational life with no salvage value. According to the Federal Laws, company can deprecate total cost of the machine on a straight-line basis over seven years. Capital budgeting evaluation should be undertaken over 7 years of time. However, that will give salvage value, which will be taxable. Question c: Do you agree or disagree with the accountant’s argument regarding the working capital outlay being ignore d in the evaluation of the capital budgeting project? Answer: I disagree. Working capital is project cash flow element. It has to be included in capital budgeting projects. Working capital in the cash flow model is considered to be an expense item. It is Tax-deductible. By including it, company benefits. At the end of the project, working capital is recovered and added to cash flow as a net earning. However, before adding it to the cash flow, its present value is evaluated. NPV is thus adjusted by adding the present value of working capital. Question d: To determine the weighted average cost of capital that the company should use to evaluate its investment projects, calculate the appropriate measure of: (i) Cost of Debt (ii) Value of Debt (iii) Cost of Equity (iv) Value of Equity (v) Weighted Average Cost of Capital. Round your calculated answer to the nearest whole percentage (i) Cost of Debt calculation. Oz – seafoods has 5$ million current debt and 20 $ million long-term d ebts. The company should consider only long term debt for its investment projects. Cost of these bonds in the project is the rate of return has to be paid to the bond owners. This rate of return is named as Yield for the bond owners, and is the cost of debt for the company. The effective yield is calculated using the formula (Investing Answers): [1+ (r/n)] ^ n – 1; where: r = Normal rate n = number of payment in one year Long term bonds = 20 $ million Average maturity= 10 years. Average coupon rate, r = 10.7 % per annum , Number of payment in one year, (paid half yearly), n = 2 r/n = 0.107 / 2 = 0.0535 (1+0.0535)^2 – 1 = 0.10986 FV = 20,000,000 $ Coupon rate = 10.7 % Coupon PMT = 1,070,000 $ half yearly COMP i = 10.986 % = 11 % = 11 % Oz – seafoods’ economist has predicted an estimated 2 % inflation rate. With this adjustment, k D = 13 % The relationship between real rate and nominal rate is (Fisher formula):Â   Rn = (1 + Rr)(1 + Ri) - 1 = Rr+ Ri+ RrRi ( Nominal rate / Real rate calculator – Web.) Where, Rn is nominal rate, Rr is real rate and Ri is inflation rate. k D = k D = 0.02 + 0.11+ 0.11 * 0.02 = 0.1322 = 13.22 % = 13 % Note: 1. The current Yield rate on similar bonds is 9 % per annum. This is 6 % per annum above the government bonds with the same maturity. OZ – seafoods’ economist has predicted an average 7 % p.a. return above the government securities. The calculated value k D = 13 % consider this increase. 2. Oz –

Managing the Learning Environment Essay Example | Topics and Well Written Essays - 2500 words

Managing the Learning Environment - Essay Example This student was called in the staff room and was warned due to his misbehavior. after few days the student behaved ill mannered with the teacher by saying her that she doesn't know how to communicate with the students and she has a fake accent as she was an Indian teacher. Initially, the teacher did not mind but later she took serious actions towards the student as he was diverting the mind of his classmates. His fellow classmates ignored her and did not pay much attention in the class. moreover, the other students who were sincere to the teacher wanted to join the other section as the class was always disturbed. later the teacher decided to manage the class effectively to get the grip on the situation so that she gains the attention back and make the class more interesting. instructors can talk the help of staff to handle such situations and can discuss such discussions. Many common examples of disruptive behavior are:- -Users of cell phones in classrooms -Inappropriate demands for attention -attending class late and leaving early -creating noise and disturbing the other students -inattentiveness in class(sleeping, reading, chatting and other such things which should not be done in class). -threats to harm oneself or others -monopolizing classroom discussions How to deal with disruptive behavior? †¢ The instructor should serve as a model by demonstrating respectful and responsible behavior with all interaction with students. †¢ the instructor should deal with disruptive behavior immediately ... how to communicate with the students and she have a fake accent as she was an Indian teacher. Initially the teacher did not mind but later she took serious actions towards the student as he was diverting the mind of his class mates. His fellow class mates ignored her and did not pay much attention in the class. moreover the other students who were sincere to the teacher wanted to join the other section as the class was always disturbed. later the teacher decided to manage the class effectively to get the grip on the situation so that she gains the attention back and make the class more interesting. instructors can talk the help of staff to handle such situations and can discuss about such discussions. Many common examples of disruptive behavior are:- -Uses of cell phones in class rooms -Inappropriate demands for attention -attending class late and leaving early -creating noise and disturbing the other students -inattentiveness in class(sleeping, reading, chatting and other such things which should not be done in class). -threats to harm oneself or others -monopolizing class room discussions How to deal with disruptive behavior The instructor should serve as a model by demonstrating respectful andresponsible behavior with all interaction with students. the instructor should deal with disruptive behavior immediately if this behavior isignored the behavior of the student is expected to increase. If the student behavior is irritating, but not particularly disruptive, consider talkingto the student privately, but do not shout on the student or insult the student inanyway. talk to the student calmly, if you feel unsafe being alone request any ofyour colleagues to accompany