Essay about Tokyo Disneyland Questions

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Assignment Questions 1. Is Japanese corporate governance changing? Yes, moving toward an Anglo-American or market-based governance system, there is little possibility that it will converge on that mode. One reason is that there are two kinds of factors determining corporate governance: one is the factors that converge easily internationally, such as financial markets reflecting financial globalization, financial data, and accounting rules; the other is those that are less likely to converge, such as the social system of a nation, commercial and corporation laws that reflect history and commercial practices. 2. How do Japanese cultural, historical and institutional variables make Japanese corporate governance different from…show more content…
5. Funds borrowed as of 1997 totalled ¥23 billion (US$195 million), for which interest payments in 1997 were ¥1 billion (US$8.5 million) (the debt interest rate is 4.34%). It was assumed that the cost of future borrowing would be 4.34% (the same as that in 1997). It was also assumed that for future investments, two-thirds would be financed by the internal withholding reserves and capital increases (including the issuance of preferred stocks) and one-third would be financed by borrowings. This assumption was made based on the past performance of the company.50 6. The Japanese rate of taxation was 43%. DIFFERENT IN CAPITAL BUDGETING TECHNIQUES (US AND JAPAN) 1. Japanese Method (Average Accounting Return) Formula: Average Investment Average Accounting Return = Average Net Income Features: (1) Use “average net income”. Sum net income / T years (2) No time factor, future values are not discounted. (3) Terminal value is not taken into consideration. (4) “Investment” is the average of the fixed assets (book value). Sum fixed assets (book value) / T years. Pros: (1) This conventional method has long been a common method of evaluating capital investment projects in Japan. (2) This method fits into Japanese management; for Japanese executives, the concept of opportunity cost is very difficult to comprehend. The concept of selling a corporation or its

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