Finance and Short Term Debt Free Essays

EncanaCost of Capital Before calculating the cost of capital I’ll calculate cost of equity and cost of dept and capital structure for ENCANA: 1 Cost of Debt: ENCANA cost of debt included cost on short term debt , long term debt and publicity traded interest amount 1. 1 Short term Debt: Short term obligations (Ex. 1) = $ 1425 million Interest Rate (Ex. We will write a custom essay sample on Finance and Short Term Debt or any similar topic only for you Order Now 1) = 3. 52% Total amount for short term debt interest = 1425 ? 3. 52% = 50. 16 million 1. 2 Long term Debt: Other long term liabilities (Ex. 1) = $1278 Interest rate (Prime rate charged) = 5. 25% Total amount for long term debt interest = 1278 ? 5. 25% = 67. 095 million 1. 3 Publicity traded: Publicity traded interest = total interest – (short term debt interest amount + long term debt interest amount) Publicity traded interest = 524 – ( 50. 16 + 67. 095) = 406. 75 million Interest rate on publicity traded = Publicity traded interest ? L. T debt on publicity traded Interest rate on publicity traded = 406. 75 ? 5351 = 7. 6% Cost on debt = Weight of long term debt ? Rate of interest on L. T debt + Weight of short term debt ? Rate of interest on S. T debt + Weight of publicity traded ? rate of interest on publicity traded = 1278/8054* ? 5. 25 + 1425/8054 ? 3. 52 + 5351/8054 ? 7. 60 = 0. 833 + 0. 622 + 5. 049 = 6. 5% *The amount $8054 is total amount of debt given in Exhibit 3 1. 4 Determining Tax rate: Tax rate for ENCANA can be determined as follow: Tax Rate= T= Net earnings before interest and tax ? tax expense T= 1260 ? 4089 = 30. 81% 1. 5 Cost of debt after tax: Cost of debt after tax = cost of debt before tax (1- Tax Rate) Cost of debt after tax = 6. 5% ( 1- 30. 81%) = 4. % ==; rate of debt (rd) 2 Cost of equity: There are following two ways to calculate ENCANA’s cost of equity : 1. Using SML equation 2. Calculating cost of equity by dividend growth model 2. 1 Calculation of cost of equity for ENCANA by using SML equation: rs = r* + MRP (b) r* = 4. 20 % (Govt. long Term Treasury Bills) rm = 13. 9% (SP arithmetic average return) MRP = rm – r = 13. 9-4. 20 = 9. 7 Beta = 1. 27 rs = 4. 20 + 9. 7 *1. 27 rs = 16. 5 19 % 2. 1 Calculation of cost of equity for ENCANA by using dividend growth model: rs = (D1/ Po – F) + g Where: D1= next year dividend Po = current price of share in market F = Floatation Cost Growth from past data: Year | Dividend per share | Growth * | 2002 | 0. 2 | | 2003 | 0. 15 | -25% | 2004 | 0. 2 | 33. 3% | 2005 | 0. 28 | 40% | *Growth rate is calculated as: 0. 15/0. 2= 0. 75-1 = -0. 25? 100 =-25% 0. 2/0. 15= 1. 33-1= 0. 33 ? 100 = 33. 3% 0. 28/0. 2= 1. 4-1 =0. 4 ? 100 = 40% Average Growth= -25 + 33. 3 + 40 = 16. 1% rs = (Do (1+ g) / Po – F) + g rs = 0. 28 (1+0. 1611) / 56. 75 (1- 0. 05) + 0. 1611 rs = 0. 25108/53. 9125 +0. 1611 rs = 16. 713% Average rs = (16. 713+16. 519)/2 = 16. 616% WACC: The WACC equation  is the cost of each capital component  multiplied by its proportional weight and then summing:   WACC = rD  (1-  Tc  )*(  D  /  V  )+  rE  *(  E  /  V  ) Where, Re = cost of equity Rd = cost of debt E = market value of the firm’s equity D =  market value of the firm’s debt V = Total Capital = E + D E/V = we = percentage of financing by equity D/V = wd= percentage of financing by debt T =  corporate tax rate By putting Values: Total Equity= E = no of shares * price of shares = 854. 9 * 56. 75 = $48515. 575 million Total Capital = Equity + Debt = 48515. 575+ 8054 = $56596. 575 Million WACC = wd * rd + we * re = 8054/56596. 575 * 4. 5 + 48515. 575/56596. 575 * 16. 616 = 0. 6404 + 14. 2436 = 14. 884% ENCANA should accept this project which will give a return of more than 14. 884%, because ENCANA has to pay their investors a return of 14. 884 and this will also generate profit which can be utilized as retained earnings and increase growth of its dividend. How to cite Finance and Short Term Debt, Essay examples

The Oriental Contingent free essay sample

The Story â€Å"The Oriental Contingent† by Diana Chang, Lisa Mallory is a major character as important as Connie Sung, although the story is about Connie. Her personality is exactly like that most Chinese. However she is not a genuine Chinese, she is a Chinese American but she never been to China. As Connie said Lisa is a person inscrutable and mysterious. At the first meet of them, Lisa is dressed in â€Å"one-of-a- kind kimono dress †¦ and her hair was drawn back tightly in a braid which stood out from close to the top of her head horizontally† (329). Connie realizes that Lisa has a Chinese face and an authoritative behavior when Lisa appears saying â€Å"well, now, Connie Sung† (329). Also Lisa becomes a little bit repetitive because she loves saying that she has a musician family like Paul Wu, her cousin who studies with two other guys. The Lisa’s behavior has an extremely influence on Connie’s life. We will write a custom essay sample on The Oriental Contingent or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page It is possible to see when they become good friends. Connie has some habit of noticing how people talk, act and dress to try to guess which place the people from. So, Lisa and Connie begin to compare with each other about their histories, such as backgrounds, hometowns and even jobs. Connie however, in the first moment, feels that she is less Chinese than Lisa Mallory. On other hand she started to check all past of Lisa, and find out that â€Å"But now Connie knew only too clearly that her own background made her decidedly inferior. Her father was a second generation gynecologist who spoke hardly any Chinese. † (330). In fact Lisa’s behavior caused effect on Connie, but in some moment Connie can see that she is more Chinese than Lisa and do not need concern about Lisa’s life. â€Å"I was adopted by Americans. My full name is Lisa Warren Mallory. † (333), â€Å"Incredulous, Connie said, â€Å"I’m more Chinese than you! †. †(333).

Acid Rain Essays (1702 words) - Inorganic Solvents, Acid Rain

Acid Rain Introduction: What Causes Acid Rain? One of the main causes of acid rain is sulfur dioxide. Natural sources, which emit this gas, are Volcanoes, sea spray, rotting vegetation and plankton. However, the burning of fossil fuels, such as Coal and oil, are largely to be blamed for approximately half of the emissions of this gas in the world. When sulfur dioxide reaches the atmosphere, it oxidizes to first form a sulfate ion. It then Becomes sulfuric acid as it joins with hydrogen atoms in the air and falls back down to earth. Oxidation occurs the most in clouds and especially in heavily polluted air where other compounds such as ammonia and ozone help to catalyze the reaction, changing more sulfur dioxide to sulfuric acid. However, not all of the sulphur dioxide is changed to sulfuric acid. In fact, a substantial amount can float up into the atmosphere, move over to another area and return to earth unconverted. In the following pages I will show the effects of acid rain on: ? Effect on Trees and Soils ? Effect on Lakes and Aquatic Systems ? Effect on Materials ? Effect on Atmosphere ? Effect on Architecture ? Effect on Humans Effect on Trees and Soils One of the most serious impacts of acid precipitation is on forests and soils. Great damage is done when sulfuric acid falls onto the earth as rain. Nutrients present in the soils are washed away. Aluminium also present in the soil is freed and the roots of trees can absorb this toxic element. Thus, the trees are starved to death as they are deprived of their vital nutrients such as calcium and magnesium. Not all of the sulphur dioxide is converted to sulfuric acid. In fact, a substantial amount can float into the atmosphere, move over to another area and return to the soils unconverted. As this gas returns back to earth, it clogs up the stomata in the leaves, thus hindering photosynthesis. Research has been made where red spruce seedlings were sprayed with different combinations of sulfuric and nitric acid of pH ranging from 2.5 to 4.5. The needles of these seedlings were observed to develop brown lesions. Eventually, the needles fall off. It was also found that new needles grew more slowly at higher concentrations of acid used. Because the rate at which the needles were falling was greater than the rate at which they were replenished, photosynthesis was greatly affected, The actual way in which these needles were killed is still not yet known. However, studies have shown that calcium and magnesium nutrients are washed away from their binding sites when sulfuric acid enters the system. They are replaced by useless hydrogen atoms and this inhibits photosynthesis. Effect on Lakes and Aquatic Systems One of the direct effects of acid rain is on lakes and its aquatic ecosystems. There are several routes through which acidic chemicals can enter the lakes. Some chemical substances exist as dry particles in the air while others enter the lakes as wet particles such as rain, snow, sleet, hail, dew or fog. In addition, lakes can almost be thought of as the sinks of the earth, where rain that falls on land is drained through the sewage systems eventually make their way into the lakes. Acid rain that falls onto the earth washes off the nutrients out of the soil and carries toxic metals that have been released from the soil into the lakes. Another harmful way in which acids can enter the lakes is spring acid shock. When snow melts in spring rapidly due to a sudden temperature change, the acids and chemicals in the snow are released into the soils. The melted snow then runs off to streams and rivers, and gradually make their way into the lakes. The introduction of these acids and chemicals into the lakes causes a sudden drastic change in the pH of the lakes - hence the term spring acid shock. The aquatic ecosystem has no time to adjust to the sudden change. In addition, springtime is an especially vulnerable time for many aquatic species since this is the time for reproduction for amphibians, fish and insects. Many of these species lay their eggs in the water to hatch. The sudden pH change is dangerous because the acids can cause serious deformities in their young or even annihilate the whole species since the young of many of such species spend a significant part of their life cycle

Colonial Life DBQ essays

Colonial Life DBQ essays There are several reasons as to why the colonies of the Chesapeake and the colonies of New England differed so greatly. The reasons all had to do with the climates, the religions, the people, and their motives for coming to the areas in which they settled. The climates of New England and the Chesapeake area differed greatly. This factored in and effected several different key differences. The climate down south was more conducive to cash crops such as sugar, tobacco, and rice- while New England's rocky and infertile soil catered to a lifestyle that revolved around manufacturing. The north would purchase crops from the south and then use them to manufacture goods. Then, they would sell the finished products to the south or to England. This ensured economic stability because Britain always bought products from the colonies, and the south depended on the north for finished goods. The climate also affected the quality and length of life. In the Chesapeake region, life expectancy was rather poor. Diseases like malaria were not uncommon and long days working in the fields often took years off one's life. Another problem was that when the colonists who had come to the south arrived, most were not into the whole idea that one had to plant crops and hunt in order to survive. They were mostly into looking for gold that didn't even exist. So from the start, their numbers dwindled and many died over the Because so many young men passed away, women actually had to be afforded certain rights, such as the widow's right to inherit her husband's property. This was a far cry from the rights of women up north. Basically, their rights included taking care of their children (they usually had about eight) taking care of the household, and being accused of practicing witchcraft. In New England, women just really didn't have that much power, mostly because men didn't ...

ISIS (Islamic State of Iraq and the Levant) Research Paper

ISIS (Islamic State of Iraq and the Levant) - Research Paper Example In the year 2006, the group further joined other Sunni insurgent groups to form the Mujahedeen Shura Council. The rise of the Mujahedeen Shura Council, lead to the emergence of an Islamic state, the Islamic State of Iraq (ISI). After the taking over of the leadership of the group by Abu Bakr al-Baghdadi, the group expanded much more where it further entered in Syria through participation in the civil war that was going on in the country. In this instance, the group formed itself in the areas dominated by the Sunnis of Syria through the governance of Ar-Raqqah, Idlib, Deir ez-Zor and Aleppo. After gaining control of Syria, the group, in this case, changed to the Islamic State of Iraq and the Levant in April 2013. The action followed after the announcement by al-Baghdadi of the merger with al-Nusra Front group from Syria. The group maintained their close cooperation with the al-Qaeda until February 2014 when they broke ranks with each other due wrangling issues related to power (Mastors, 75). According the information obtained from the Iraqis and the spokesmen from the United States, the Islamic State of Iraq, and the Levant supported themselves. They supported themselves through raising of the money got from the kidnappings of wealthy Iraqis who paid to them a given ransom for their release. Apart from kidnapping of the wealthy citizens for ransom payments, the rebel group also used such activities like car theft, hijacking fuel trucks, and counterfeiting. Other sources of finance came from the raised supplies by commandeering rations and shaking down Iraqi soldiers for ammunition. The last cases involved the most lucratively stole oil in the region of Bayji for the black market to raise money for supporting their activities (QutÃÅ'Â £b, 56). Besides kidnappings and corruption means of sourcing for finance, Islamic State of Iraq and the Levant also got financial assistance from jihadists in

The War Against The White American Man Research Paper

The War Against The White American Man - Research Paper Example Racism against white people is one of the critical areas of concern. The country has undergone tremendous changes for many years and there are prospects of continual growth in the coming years in regards to the strong economic backbone. Therefore, all people need to get it through there minds that there will always be people out there that do not have similar looks as they do, and do not have the same reasoning capacity the way they do, won't die the way they do, do not have dietary perspectives a theirs and would not raise there kids the way they do. This characterizes complexities of life. Everything on this planet has to come to terms with its surrounding. Thus people have to either learn to adapt or face the wrath of being rigid to change. Do know how dull life would be if everyone was the same color? If you are a believer in God or any other form of a supreme creator, then the decision to make everyone to look the same would not have been a problem (Strong, 2008). Existence of d ifferent races is just analogous to the difference in Everything that comprise our environment such as birds, plants, and natural features. Therefore, it is inconceivable for any reasonable being to escalate racism among the white American man since they society holds him as the instigator of racism. Just like it is easier for the minority to receive public recognition, the white American man requires similar recognition in order to curb racism propagated against the group (Wise, 2012). White men have been blamed by many nationalities for every ill thing that has been infused into the society (Flemming, 2003). Worse of it all, is that their own women are league with other races in blaming them. In regards to these racism actions, the white man has become an endangered human species because the world is embracing thugs, drug dealers and their form of life, while those things pioneered by the white boys or males is shunned away due to memories of the slavery (The Telegraph, 2011). As a white American husband to a black woman, I experience prejudice from the male black and other ethnic groups but not from my white counterparts. According to my own understanding, white people do not have any advantage against the Indian, Chinese, colored, or black community because we are human beings subject to feelings, need to belong to a family, love, feeling and much greater need to live life. There are several forms of bigotry in the society that has received much support due to the entertainment aspect associated with it. To begin with, my evaluation of the Japanese donning themselves with bushy wigs or beards, large fake nose embellished with speaking in loud, broken, and poor English is a direct demeaning activity to the white population. The white communities that take note of these practices are left in the dilemma whether to perceive it as offensive or as a form of amusement meant for entertainment purposes (Morgan, 2008). Nevertheless, the white person is not allowed to stereotypically dress like the Japanese people in yellowish skin, â€Å"slanted eyes,† geeky glasses, and buck teeth because the world would immediately recognize that as an unpleasant negative typecast. Similarly, the black community has received much recognition through their comedy routines where they openly say almost every thing they wish about the

Business Research Essay Example | Topics and Well Written Essays - 2000 words - 2

Business Research - Essay Example Customer satisfaction gains all the more relevance in hospitality industry like the hotel industry. The Ritz hotel is one of the prestigious and luxurious hotels in France. The hotel is located at the heart of Paris in France and is one of the seven recognized Parisian palace hotels. Ritz presently offers 159 rooms with suites, restaurant, bars and private salons. True to the spirit of Ritz, each room offers a harmonious blend of modern ease and classical charm in a quintessentially French style. While there can be many reasons to choose Ritz over others; some reasons can only be experienced (Ritz Paris, n.d.). The hotel, now, plans to evaluate the level of customer satisfaction with the help of a survey. ‘Guest Satisfaction Questionnaire’ is distributed in various guest rooms and suites of the hotel. This report contains the questionnaire along with proper methodology to analyze the same. A conclusion has been inferred from the analysis and plausible recommendations are suggested to improve the service. Customer satisfaction is majorly understood as the sense of satisfaction that a customer feels when he or she compares his or her expectations with the actual quality of the acquired service. Satisfaction is closely related to the quality of the service (Krivobokova, 2009). In the absence of customer feedback, the quality of service is extremely difficult to assess. That is why direct involvement of the customers is necessary to analyze the improvement activities. Since evaluation of the level of customer satisfaction demands a considerable involvement from the customers, surveys are of paramount importance. Customer survey is a part of primary research. In this case primary researches are used to investigate an issue specific to business and to get feedback from the customers. Primary research delivers more specific results than the secondary research. On the other hand, secondary research is done on