Valuing Investment Decisions: Flotation Costs And Capital Budgeting

We highlight a measurement problem inherent in the prevalent approach to factoring flotation costs in capital budgeting decision-making.  This arises because the traditional method calculates a higher cost of capital, while keeping the initial cash-flow unchanged.  We demonstrate an alternate approach that corrects for this problem by assigning a higher initial investment due to flotation costs, while keeping the cost of capital unchanged

Internationalizing A Business School Program: A Descriptive Study Of A Strategic Implementation Process Of Internationalization

The purpose of this study is to explain the process that a small private business school with limited resources and no prior experience took to internationalize its business school program. The extent of this globalization project was not limited to just revising, initiating, and enhancing its course offerings for accounting, business administration and economics major but it also included a plan to provide additional Study Abroad opportunities for its business students, to develop collaborative partnerships with the Spanish foreign language faculty, and to increase educational programs to the outside business communities. All of these will be briefly explained because this globalization process would be incomplete without their inclusion; however, the focus of this particular study will concentrate on the internationalization of the business school curriculum

Bankruptcy Prediction In The Textile Industry

This paper extends the use of Altman’s Z-Score bankruptcy predictor to the textile industry. Generally, firms benefited from the North American Free Trade Agreement (NAFTA) but suffered financially after the Asian currency crisis. The study finds that Type I classification errors support prior research while Type II classification errors are much higher than previous literature findings. The results indicate a need for a modified bankruptcy predictor for the textile industry