Discuss a training strategy and a leadership development strategy.

Discuss two (2) general principles of learning.

Suppose there are two identical companies, A and B.  The only difference between the two companies is their capital structure.  A’s capital structure has 70% equity and 30% debt and B’s capital structure is 30% equity and 70% debt.  Which company will have a higher Beta?

Mitch’s BMW has a capital structure of 30% debt and 70% equity, its tax rate is 40%, and its beta (leveraged) is 1.5.  Based on the Hamada equation, what would the firm’s beta be it if used no debt (ie unlevered beta)?  Answer rounded to two decimal points; for example 3.45 for your answer. 

Suppose a pair of skis sell in Canada for 1,235 Canadian Dollars and one Canadian Dollar = .72 US Dollars.  If purchasing power parity holds, what is the price of this same set of skis in the US?   Answer in US Dollar and cents rounded to the nearest penny; for example 456.87 for your answer. 

According to Herzberg’s theory of motivation, match the factor as being extrinsic (job context) or intrinsic (job content) (equally weighted)

Match the equity term with the definition (equally weighted)

Free Cash Flow should be equal to the following:  EBIT (1 – Tax Rate) + Depreciation & Amortization – Capital Expenditures + or – the Change in Shareholders Equity.

You are the CEO of Boardwalk Inc.  You are presented with two projects which have the following characteristics: Project A;   NPV = $156,  IRR = 11.7% and Payback = 3.4 years Project B;  NPV = $66,  IRR = 12.9% and Payback = 1.5 years   Explain your thinking in terms of accepting or rejecting both projects if a) they are independent and b) if they are mutually exclusive.  

Calculate the NPV for the BJR Corporation project above. Assume WACC = 8%.  Answer in dollars and cents rounded to the nearest penny; for example 45.34 for your answer.