An increasing number of manufacturers are adopting more sophisticated purchasing practices and inventory control systems. What are the strategic implications of these developments for business marketers wishing to serve these customers?

An investor is comparing a 30-year fixed-rate mortgage with a 15-year fixed-rate mortgage. The 15-year mortgage has a considerably lower interest rate. If the annualized interest rate on the 30-year mortgage is 10 percent, compounded monthly, what rate, compounded monthly on the 15-year mortgage, offers the same monthly payments?

Analysts project that Infotech, an information services company, will have the following financial data for equally probable high and low states: The firm is currently financed entirely with equity. The growth opportunity consists of a positive NPV project with a required initial investment of $200 and a value of $300. Management, knowing with 100 percent certainty whether the firm is in the high...

Analyze the Hughes acquisition (which took place) by first computing the betas of the comparison firms, Lockheed and Northrop, as if they were all equity financed. Assume no taxes.

Applied Micro Devices (AMD) currently spends $213,333 a year leasing office space in Austin. Because lease payments are tax deductible at a 25 percent corporate tax rate, the firm spends about $160,000 per year [5 $213,333 3 (12.25)] on an after-tax basis to lease the building. The firm has no debt and has an equity beta of 2. Assuming an expected market return of 14 percent and a risk free rate...

Apply the APV method. First, compute the value of the unlevered assets of the Hughes acquisition. Next, compute the present value of the tax shield. Finally, add the two numbers.

Ariba, Inc., is a leading provider of e-procurement software solutions. Go to http://www.ariba.com and a. describe the key products and services that the firm offers to its customers, and b. review a case history that describes a particular customer and how it has applied one of Ariba’s procurement solutions.