Nobody downloaded yet

Application report 2 - Essay Example

Comments (0) Cite this document
The rise in interest rate will increase the cost of capital and it will have the impact on consumer financing.
Assuming currently a vehicle…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER95% of users find it useful
Application report 2
Read TextPreview

Extract of sample "Application report 2"

Download file to see previous pages The rise in federal interest rate causes general increase in the cost of capital. This leads to the increase in the cost of manufacturing and services. The present value of annuity such as pension will decrease because the value of dollar or purchasing power of dollar will fall.
However, with the rise in interest cost the higher interest rate of 6% will reduce the present value of annuity to 40,000/1.06= $37,735. The person has lost $360 due to rise in the cost of living. Vice versa is also true. Further, the future value of the money invested will rise along with the rise in interest cost.
The significance of above calculation is that total annuity though received is $5000 yet actual worth is $4329 only. The worth will further be reduced if interest rate is still high, say, 7 %. The quick calculation can be done with the same equation.
Firms calculate weighted average cost of capital that depends upon the cost of equity and the cost of debt. The cost of debt will rise with the rise in interest cost as company will need to give higher interest on its borrowings. The increase in the cost of debt will also increase the cost of equity because the cost of equity rules a few percentage points higher (usually 5 to 10% depending upon the risk profile of the company) than the debt cost.
The higher interest cost will result into higher production cost of the product or services. If the company is unable to pass the increased cost to the consumers then it will reflect into the reduced earnings of the company for a given year. The net profit of the company is calculated by deducting the interest paid on the debt in a given year; however lesser earnings in a given year may also result into lesser dividend for ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Application report 2 Essay Example | Topics and Well Written Essays - 500 words”, n.d.)
Application report 2 Essay Example | Topics and Well Written Essays - 500 words. Retrieved from
(Application Report 2 Essay Example | Topics and Well Written Essays - 500 Words)
Application Report 2 Essay Example | Topics and Well Written Essays - 500 Words.
“Application Report 2 Essay Example | Topics and Well Written Essays - 500 Words”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Application report 2

Report 2

...?Report #2 Table of Contents Table of Contents 2 Target Market 3 Segmentation variables 3 Income 3 Age 4 Gender 5 Geography 5 Usage 6 Other 7 Direct Competition 8 Indirect competition 9 References 10 Target Market Segmentation variables Income France is considered to be a well developed economy in Europe. The living standard is high in France. It has a rich and diversified culture. Compared to other European countries, France was able to handle the economic recession much better in the year 2008. In the year 2009, its GDP was $2,675.92 billion. It is the 5th biggest economy internationally with a GDP (PPP) of 2.555 trillion USD in the year 2010 (Stanley St Labs, “France Economy”). The...
5 Pages(1250 words)Research Paper

Application Report 2

...Interest Rates Inflation can be described as a period when commodities prices increase at a higher than average rate,which is usually between 2-3%. The Federal Reserve keeps a close eye on inflation by evaluating the prices of consumer commodities. In fact, the Federal Reserve uses consumer price index, CPI and the producer price index to monitor the inflation rate. If the inflation rate is higher than 2-3% then the Federal Reserve has the option of either lowering or increasing the interest rates to tip the scale. Interest rates and inflation have an inverse relationship. In other words, if there is inflation and the price of commodities is high the Federal Reserve has to lower the interest rates to...
2 Pages(500 words)Essay

Application 2 lesson planning

...their teaching. The most effective and appropriate teaching strategy is brainstorming as it keeps students on their toes about what has been discussed previously and also ensures that students always link what they are being taught currently with the previous knowledge for better understanding of the course. Brainstorming also ensures that learning is more student-centered as the teacher just initiates the discussion and students pick from there reminding each other issues taught and discussed previously and their application to the present knowledge. It is through brainstorming that I would be able to assess the gap in the students’ knowledge and be able to guide them to make further clarifications, explanations or...
4 Pages(1000 words)Essay

College Application 2

...Having been in this college for the last five years, certain definite circumstances that are discussed below have prompted me to place application for this semester transfer. I am an International student who hails from Korea and for the last 5 years I have majored in International Business. For the time I have been studying in Korea taking a course related to International Business, my school fees and other financial requirements have been met by my family. As per my academic excellence, I however was able to secure a scholarship to a more world class college where I would complete my study in International Business. The financial support is as per the demands of the course which agrees to meet even the gradual...
1 Pages(250 words)Admission/Application Essay

Week 2 application 6330

.../E7E13954/Ohio/Cincinnati/University-of- Cincinnati-Main-Campus/reviews/ Habanek, D. V. (2005), An examination of the integrity of the syllabus. College teaching, 62-64 Keating, S. B. (2010). Curriculum development and evaluation in nursing education. New York: Springer Publishing Company. University of Cincinnati. (2011, January 2). Master of Nursing: Curriculum. Retrieved from Online Nursing Degree: degree-curriculum/ University of Cincinnati. (2013, January 1). Online Nursing Degree: Family Nurse Practitioner. Retrieved from Master of Nursing: degree/family-nurse-practitioner/ University of Cincinnati. (2013,...
6 Pages(1500 words)Assignment

Unit 7 Application 2

...(Heneman et al, 2012). If I were an applicant, the standard plan would be my most ideal choice. This is the plan not so taxing in terms of starting salary while also provides opportunity for participation in the annual bonus plan. Additionally, the 10% starting salary below market average can easily be offset by benefits in the annual bonus plan. The bonus range is also 0% to 20%, which is way above the difference between salary offered for this plan and the market average. Question 2: Will the HVP program likely increase the job offer acceptance rate? Why or Why not? Yes, the HVP plan will most likely increase the job offer acceptance rate. Rejection or acceptance of a job offer by a candidate depends...
4 Pages(1000 words)Essay

Unit 8 Application 2

...Essay, Human Resources (HR Unit 8 Application 2 Is the loss of 30 managers out of 120 in one year a cause for concern? Yes, the 30% turnover rate for managers should be of concern due to various reasons. Each management should be careful with the issue of employees’ turnover since valuable employees may be lost in this process. In turn, HCLC should be concerned with the loss of 30 managers since they can be leaving because of lack of job satisfaction (Gully and Phillips, 2010). Research should be carried out in order to find out why employees tend to leave HCLC. Although the turnover affects a small fraction of the managers in the organisation, finding out and putting on record the reasons why managers...
4 Pages(1000 words)Essay

Application 2

...Reliance Industries Q The role of parents in Reliance Industry was to maintain the family business values and to settle dispute between the business successors. They also prepared the sons to be successor of the business. The culture of the business was influenced by the conservative Gujarati culture. The brothers had a poor relationship in the business because of the leadership rivalry in the business. However, they had a good relationship with their parents. The succession problem resulted from a lack of succession plan. The father did not also write a will specifying the role of the brothers in the business. Q. 2 The succession to next generation was not successful from the family point of view. This is because it...
1 Pages(250 words)Admission/Application Essay

Practicum and Application #2

...Practicum and Application #2 Practicum and Application #2 Teaching practice for teachers remains a strong wayto improve their teaching modes, as well as, generate new modes of study (Ebert & Culver, 2013). An effective elementary teacher requires learning teacher practices that will guide him/her through the teaching processes (Moss & Lapp, 2010). The K-3 teachers need to major on the social and active aspects of the children undergoing kindergarten. On an interview with a lady teacher, I was able to assess how she applied the teaching practices to ensure effective learning (Kitzman & Gunzenhauser, 2012). The elements of effective teaching that were being assessed included management of the classroom and planning of lessons... and...
4 Pages(1000 words)Essay

Application Exercise N.2

...Compassionate Critical Listening It was last year during the last summer holidays when the terrorism acts raided the News airlines across the country. Incidentally, I boarded a train to the neighboring town and my seat mate was a Muslim faithful. I was terrified because I thought the man had bad intentions of committing suicide bombing in train. This is because it was reported that the Muslims were on a revenge mission against the innocent citizens and were out for malicious actions. I also assumed that all Muslims were affiliated with terrorist gangs like the Al-Qaeda or other extremist groups. I avoided the man for the rest of the journey and prayed that I could reach my destination safely without any harm or...
1 Pages(250 words)Admission/Application Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Application report 2 for FREE!

Contact Us