Submitted By maxytaxyboy

Words 645

Pages 3

Words 645

Pages 3

PVIFn,i

=[

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0

1

(1 i ) -n n (1 i)

FVIFn,i (1 i ) n

1⁄

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0

= ln 1 + )

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1

FVIFA n,i (1 i ) n 1 i 1

FVIFA - Duen,i (1 i ) n 1 (1 i ) i t

(1 k t ) ft

1

(1 k t-1 ) t-1

−1

1

1 - (1 i ) -n i 1

PVIFA - Duen,i 1 - (1 i ) -n (1 i ) i -in

PV FVe

PVIFA n,i

m

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= [1 + (

i j 1

2

+−

)]

365⁄

2

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NAB≠Principalforfront-end fees, discount interest and compensating balance.

FV - Price 365 kn = kr + + kr

Bond Equivalen t Yield

or

Price

Term

(1 + ) = (1 + )(1 + )

YTM = kr + INF + MRP + LRP + DRP

C

C FV

Pbond

(1 k1 ) (1 k 2 ) 2

$FVn

(1 in ) n

Pzero

Pbond $C

Holding Period Return

P t 1

P

Holding Period Return

D0 (1 g) t D0 (1 g)

D

P

1 t (1 k) k-g k-g t 1 k Payout Ratio k-g D1

g

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Po

Price

BVPS Book value per share

COV(k i , k j ) σi σ j

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COV( k1 , k 2 ) Σ Pri k1i E( k1 ) k 2i E( k 2 ) i 1

Pt Pt 1 C t

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1 - (1 k d ) -n kd (1 k d ) n

σ

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Pr k i 1

i

E(k)

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i

Final Exam Formula Sheet

E(k p ) x1 E(k1 ) ... x n E(k n )

2 σ x 2σ a (1 x) 2 σ 2 2x(1 x)ρa,bσ a σ b b E(k 1 ) Pri k1i

E(k i ) k f βi (E(k M ) k f )

E(k i ) - k f βi β p x1 β1 ... x n β n

βi

n

i 1

Ti =

COV(k i , k M ) σ2 M

2 σ i2 β i2 σ 2 σ di .

M

Free Cash Flow = Operating Cash Flow – CAPEX – Change in NWC…...

...• o Question o Answer o Side 3 • o Budgeted At Completion (BAC) o How much was originally planned for this project to cost. No one formula exists. Is derived by looking at the total budgeted cost for the project. o No one formula exists. Is derived by looking at the total budgeted cost for the project. • o Planned Value (aka Budgeted Cost of Work Scheduled) (PV or BCWS) o How much work should have been completed at a point in time based on the plan. Derived by measuring planned work completed at a point in time. Planned % Complete x BAC o Planned % Complete x BAC • o Earned Value (aka Budgeted Cost of Work Performed) (EV or BCWP) o How much work was actually completed during a given period of time. Derived by measuring actual work completed at a point in the schedule. EV = Actual % Complete x BAC o EV = Actual % Complete x BAC • o Actual Cost (aka Actual Cost of Work Performed) (AC or ACWP) o The money spent during a given period of time. Sum of the costs for the given period of time. o Sum of the costs for the given period of time. • o Cost Variance (CV) o The difference between what we expected to spend and what was actually spent. CV = EV-AC o CV = EV-AC • o Schedule Variance (SV) o The difference between where we planned to be in the schedule and where we are in the schedule SV = EV-PV o SV = EV-PV • o Cost Performance Index (CPI) o The rate at which the project performance is meeting cost expectations during a......

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...Formula of Business Finance Time Value of Money ➢ Future Value of simple interest: [pic] ➢ Present Value of simple interest: [pic] ➢ Future Value of compound interest for single cash flow: [pic] ➢ Present Value of compound interest for single cash flow: [pic] ➢ Future Value of compound interest for multiple cash flows: [pic] ➢ Present Value of compound interest for multiple cash flows: [pic] ➢ Future Value of continuous compounding: [pic] ➢ Present Value of continuous compounding, [pic] ➢ Future Value of Ordinary or Immediate Annuity: [pic] ➢ Present Value of Ordinary or Immediate Annuity: [pic] ➢ Future Value of with continuous compounding: [pic] ➢ Present Value of Ordinary Annuity with continuous compounding [pic] ➢ Future Value of Annuity Due: [pic] ➢ Present Value of Annuity Due: [pic] ➢ Present Value of Perpetuity: [pic] ➢ Role of 72 to make double any amount: [pic] Or, [pic] ➢ Effective Annual Rate (EAR): [pic] ➢ Effective rate of nominal rate ‘r’ for continuous compounding: [pic] r = Stated or Quoted rate of interest in a year. i = Interest rate per period.= r/m m = Number of compounding per year. t = Number of years or Time expressed in years. n = Number of total periods = t × m R/C= cash flow per period. P / PV = Principal amount or Present Value F / FV =Future amount or Future......

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...FORMULAS Expected return of a stock portfolio - E[rp]: (3 stocks) E[rp] = X1 ( E(r1) + X2 ( E(r2) + X3 ( E(r3) Portfolio variance ((P)2 : (3 stocks) ((P)2 = X12 ( (12 + X1( X2((12 + X1( X3((13 + + X2( X1((21 + X22 ( (22 + X2( X3((23 + + X3( X1((31 + X3( X2((32 + X32 ( (32 where: X1 , X2 och X3 is respective stocks amount of the total value of the portfolio. (12 , (22 and (32 is respective stocks variance (12 = (21 is the covariance between stock 1 and stock 2 (13 = (31 is the covariance协方差 between stock 1 and stock 3 (23 = (32 is the covariance between stock 2 and stock 3 CAPM: E(rj) = rf + (j ( [E(rm) -rf] where: E(rj) is the expected return of stock j E(rm) is the expected return of the market portfolio rf is the risk-free interest rate (j is the beta-value of stock j (j = Cov (rj,rm)/var(rm) = (jm ( [pic] Stock j:s contribution to the risk of the portfolio (j = [pic] MODIGLIANI & MILLER M&M Prop I. Without corporate taxes: VL = VU M&M Prop II. Without corporate taxes: rS = rU + (rU - rB) ( [pic] M&M Prop I. With corporate taxes: VL = VU + TC (B M&M Prop II. With corporate taxes: rS = rU + (rU - rB) ( [pic] ((1-TC) rWACC = [pic]rB ((1-TC) + [pic]( rS VL = [pic] where: VU = Value of the all equity financed firm (Unlevered firm) VL = Value of the Levered firm B = Value of the debt (bond value) S = Value of the equity (Stock value) TC = Corporate......

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...StaInstructor’s Manual CASE TEACHING NOTES The Formula One constructors Mark Jenkins 1. Introduction This case enables students to explore sources of competitive advantage using the context of Formula One (F1) motorsport. The case highlights the ways in which three particular F1 teams created four situations of competitive dominance for a sustained period. It allows the students to consider individual teams and the generic issues needed to succeed in this specialised context. The case is organised into five parts. The first is a brief overview designed to give those unfamiliar with F1 some understanding of its history and structure. This is followed by four detailed descriptions of particular periods of dominance by an F1 team. The introduction to the case describes the overall nature of Formula One motorsport and its origins in Europe after World War II. It identifies some of the central aspects of being an F1 constructor, such as the need to generate sponsor revenues through increasingly sophisticated marketing strategies, and also the need to design, develop, manufacture and race open-wheel single-seat racecars. Note: the term ‘constructor’ differentiates F1 from other racing series in which race teams compete with bought-in racecars. F1 constructors are effectively in the business of designing and constructing prototypes – each car being unique to each constructor but within a set of pre-defined rules that cover weight, dimensions and other basic parameters.......

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...To Write a Chemical Formula in OWL Enclose subscripts with underscores _. Enclose superscripts with carats ^. The underscore key is next to the number zero on the keyboard. The carat key is the number six on the keyboard. H_2_O = H2O Cr^3+^ = Cr3+ Combined: SO_4_^2−^ = SO42− Ions Unit Charge Ions Write the number first and then the charge. Do not include the number one in unit charge ions. N^3−^ = N3− Ca^2+^ = Ca2+ Na^+^ = Na+ Cl^−^ = Cl− Using the Chemical Formula Input The chemical formula input box displays the superscripts and subscripts as you enter the formula. There are 3 ways to use the input box. • Keyboard: Use the keyboard to enter underscores and carats on your own. • Buttons after: Enter the formula without underscores or carats, then highlight each superscript and/or subscript, click the appropriate subscript or superscript button, and the underscores or carats will be filled in automatically. • Button during: Use the subscript or superscript buttons to enter the underscores and carats while you type the formula. To Write a Chemical Formula in OWL Enclose subscripts with underscores _. Enclose superscripts with carats ^. The underscore key is next to the number zero on the keyboard. The carat key is the number six on the keyboard. H_2_O = H2O Cr^3+^ = Cr3+ Combined: SO_4_^2−^ = SO42− Ions Unit Charge Ions Write the number first and then the charge. Do not include the number one in unit charge ions. N^3−^ = N3− Ca^2+^ =......

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...Chapter 1 * Cash flow from assets (CFA) = OCF – NCS – ΔNWC * OCF= Operational cash flow = EBIT + Dep – taxes = EBIT (1 – T) + Dep * NCS= Net Capital Spending NFAEnd – NFABeg + Dep * NWC= Net Operating Working Capital = NOWCEnd - NOWCBeg * Free Cash Flow (FCF) = (Revenues – Costs) (1- Tc) – Cap. Expenditures – ΔNWC + (Dep) (Tc) Chapter 4 * Financial Planning has three important uses: 1. Forecast the amount of external financing that will be required 2. Evaluate the impact that changes in the operations plan have on the value of the firm 3. Set appropriate targets for compensation plans * The following steps are used to develop a financial forecast: 1. Forecast sales 2. Project the assets needed to support sales 3. Project internally generated funds 4. Project outside funds needed 5. Decide how to raise funds 6. See effects of plan on ratios and stock price * Parts of financial planning model: * Inputs * The planning model * Outputs * Key Ratios: * Profit Margin: NI/ Sales * ROE: NI / Common equity * DSO: AR/ (Annual Sales / 365) * Avg. time it takes to collect rev after sale has been made * Inventory Turnover: Sales/ Inventory * Fixed Asset Turnover: Sales/ NFA (Net Fixed Assets= Fixed assets- acc. Depre.) * Debt/ Assetss: TD (Total Debt) / TA (Total Assets) * TIE: EBIT/ Interest Expense * Current Ratio:......

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...Formulae Final Examination Financial Accounting and Financial Statement Analysis l Equity Valuation and Analysis l Corporate Finance l Economics Table of Contents 1. Financial Accounting and Financial Statement Analysis 1.1 Generally Accepted Accounting Principles: Assets, Liabilities and 1 Shareholders’ Equities ......................................................................................... 1 1.1.1 1.2.1 1.3.1 1.3.2 1.3.3 Assets: Recognition, Valuation and Classification....................................... 1 Earning per Share ......................................................................................... 1 Profitability Analysis ..................................................................................... 2 Risk Analysis ................................................................................................ 5 Break-Even Analysis .................................................................................... 6 1.2 Financial Reporting and Financial Statement Analysis ...................................... 1 1.3 Analytical tools for Assessing Profitability and Risk......................................... 2 2. Equity Valuation and Analysis 2.1.1 2.1.2 2.1.3 7 2.1 Valuation Model of Common Stock .................................................................... 7 Dividend Discount Model............................................................................. 7 Free Cash Flow......

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...Formulas: 4 Total Cost 4 Contribution Margin 4 Unit Contribution 4 Total Contribution 4 Profit 4 Channel Margins 5 Margins (in %) – Based on Price 5 Mark-Ups (in %) – Based on Costs 5 Example: 5 Moving Up & Down the Value Chain 6 Move “Up” Chain 6 Move “Down” Chain 6 Breakeven Analysis 6 BE (units) 6 BE (dollars of sales) 7 Market Share 7 Dollar Share 7 Unit Share 7 BE MS (Dollars) 7 BE MS (Units) 7 Cannibalization 7 Total Contribution (NP) 7 Net Present Value: Today’s $ v. Next Year’s $ 8 Customer Lifetime Value (CLV) 8 Mkt Strat I: Strategy Formulation, Market Assessment Tools (Frameworks), Porter’s Generic Strategies 9 Dolan’s 5 Cs 9 Porter’s 5 Forces Model 10 BCG Matrix 10 Marketing Strategy II: Segmentation and Positioning 11 S-T-P 11 Consumer Segmentation Variables: 11 Business Segmentation Variables: 11 Characteristics of Effective Segmentation 11 Bases for Segmentation Evaluation 12 Targeting the Markets 12 Pricing 12 Top 3 of 5 Deadly Pricing Sins 12 8 Steps to Better Pricing Decisions 12 Value-Based Pricing 13 Marketing Research 14 Steps in Marketing Research 14 Reliability v. Validity 14 Marketing Channels 15 Value Adding Roles of Intermediaries 15 Channel Conflict and Efficiency 15 Salesforce Management 15 McMurry’s sales representative types: 16 Motivating the Salesforce 16 Simple Salesforce Structures 16 Salesforce Size 17 Brand Management 17 Brand......

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...Evaluation of Financial Policy GBA 546 Formula Sheet Prepared by P. Sarmas Cash Flow from Assets = Cash Flow to Creditors + Cash Flow to Stockholders Operating Cash Flow Interest Paid Dividend Paid - Net Working Capital - Net New Borrowing - Net New Equity - Net Capital Spending Cash Flow to Creditors Cash Flow to Stockholders Cash Flow from Assets EBIT Ending Net Fixed Assets + Depreciation - Beginning Net Fixed Assets - Taxes + Depreciation . Operating Cash Flow Net Capital Spending Ending Net Working Capital (CA – CL) - Beginning Net Working Capital (CA-CL) Change in Net Working Capital Ending L.T. Debt Ending Equity - Beginning L.T. Debt - Beginning Equity Net New Borrowing - Addition to Retained Earnings Net New Equity Dividend Payout Ratio = Dividends Net Income ROADuPont = Profit Margin * Total Assets t/o ROEDuPont = Profit Margin * Total Assets t/o * Equity Multiplier Earnings Retention Ratio = b = 1 – Dividend Payout Ratio = 1- DIV/NI (1+R) = (1+r)*(1+h) Operating Cycle = Inventory Period + Accounts Receivable Period Cash Cycle = Operating Cycle – Accounts Payable Period Operating Cash Flow = EBIT + Depreciation – Taxes Operating Cash Flow = (Sales – OC – Depreciation)*(1-T) + Depreciation......

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...Formula of Success This report recommends ways to overcome the challenges faced in the business field. The advices came from an interview with Mudit Sethi, who works in the Financial Department of Chase Headquarter in Chicago. Mr. Sethi majored in Finance at UIC and joined Chase after graduating four years ago. He graduated during the financial crisis; therefore, most of his advices involve the crisis and how he managed to find a suitable job during the crisis. His advices are being interested in the work, being committed to the work, and being able to incorporate changes and use them to the advantage. When asked about the importance of writing in finance, he characterized it as essential part of any business. His advices motivate students to pursue the career of their choice with determination. He further elaborated each important advice by giving example from his personal experience. Interest in the work The first challenge that any person faces involves finding a suitable career that best suits their personality. The challenge involves finding work that will keep a person interested for the rest of his/her life. Mr. Sethi faced similar challenge while getting started at UIC. It was the time of financial crisis, and Mr. Sethi knew that finding work during the crisis would be difficult. But, he was so interested in the Finance field that he took the challenge and continued to study Finance at UIC. However, he did find it difficult to find work as soon as he graduated.......

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...MAR 4231 = Financial Formulas Note: When calculating the financials, please round to four decimal places. For example: 1.7658643983 = 1.7659 (four decimal places) 0.4322222222 = 0.4322 (four decimal places) Asset turnover = Net sales Total assets Cost complement = is the relationship of cost to retail value of merchandise available for sale Total cost valuation Total retail valuation Cost of goods sold = Cost of merchandise available for sale – cost value of ending inventory Ending retail book value of inventory = on paper, how much is your inventory worth (at retail) = Merchandise available for sale – Sales – Deductions Financial Leverage = Total assets Net worth Gross Profit = Sales – Cost of Goods Sold Net Profit = Gross Profit – Operating Expenses Net Profit Margin = Net profit after taxes Net sales Profit & Loss Statement = Sales – less cost of goods sold = gross profit Return of Assets = Net profit margin x asset turnover Return on Net worth = Net profit margin x Asset turnover x Financial leverage Stock Shortages = how much inventory was stolen/lost? Ending retail book value of inventory – physical inventory at retail Total merchandise available (at cost) = Beginning monthly inventory + Net purchases + transportation charges Total merchandise available (at retail) = Beginning monthly inventory + Net purchases Adjusted ending retail book value of inventory = adjusted the value of the retail book value of......

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...Kursnotierung Direkt: Heimwährung / Fremdwährung Indirekt: Fremdwährung / Heimwährung Bidpreis: Ankaufs-/Geldkurs Askpreis: Verkaufspreis/Briefkurs Bid-/Ask Spread (%) = Crossrates Bid → Bid, Ask Ask → Ask Bid !"#!!"# !"# fairen Kurs). Erfolge werden mit einem Konto verrechnet. Initial Margin: Preis den Vertrag einzugehen Maintenance Margin: Untergrenze, wenn Guthaben darunter à Margin Call Währungsoption Bezugsverhältnis (Ratio) Ratio Optionen für 1 Einheit zum @Ausübungspreis (Strike) Briefkurs/Kaufpreis (Callprämie) Black und Scholes ! = !"#$%&'%(#, ! = !"#ü!"#$%&'()% ! = !"#$%&", ! − ! = !"#$%&'()"*$ ! = !"#$%&'(#). ! = !"#"$%|!"#$%& ! = ! ∗ ! !! − ! ∗ !!! !!! ∗ !(!! ) !! = (!" ! ! Paritätsbeziehungen !! − !! ! + !! !"#$ !"##$%$&'"() !"#$%&!""#$% !! − !! ! + !! !"#$%&'(")*'## International Fisher Effect Rendite im In- = Rendite im Ausland !! ! + !! ! = !! ! + !! ! Zinsparität !! − !! ! − !! = 1 + !! !! Währungsrisiken Accounting Exposure: Erfolg bei Umwandlung von Bilanz in Heimwährung Transaction Exposure: Einfluss der WK auf zukünftige vertragliche Verpflichtungen Operating Exposure: Einfluss der WK auf zukünftige Zahlungsstöme (operative Cashflows) Economic Exposure: Operating Exposure Transaction + IRP !!,! − !! !! !"#$%&'#ä!"#$ IFE ! !". PPP !! − !! !! !"#$%"&'()%*")ä!"#$%!& Terminverträge Fwd. Bid < Fwd. Ask à Prämie (addieren) Fwd. Bid > Fwd. Ask à Discount (subtrahieren) Swap Rate (......

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...FORMULAS CHAPTERS 12, 14, 15 AND 16. CH 12 BREAK EVEN ANALYSIS Sales price EBIT = 0 = units X per unit Break-even level of units variable cost - units X sold per unit total fixed + sold cost total fixed cost = sales price variable cost per unit − per unit Total fixed cost S* = F/ [1 – (VC / S)] Break-even level of revenues = variable cost 1revenues Degree of operating leverage DOLs = Q (P – V) / [Q (P – V) – F] DOLs = revenue before fixed cost / EBIT = S – VC / [S - VC – F] Degree of financial leverage DFLEBIT = EBIT / (EBIT - I) Degree of combined leverage DCLS = (DOLS) X (DFLEBIT) EBIT – EPS indifference point: EPS: Stock plan (EBIT – I)(1 – t) – P / Ss = EPS: Bond plan (EBIT – I)(1 – t) – P / Sb EBIT = [Ib – Is (Sb / Ss ] / [ 1 - (Sb / Ss) ] 14 SHORT-TERM FINANCIAL PLANNING CURRENT ASSETS AS A PERCENTAGE OF SALES = Current assets / sales Projected current assets = projected sales X (current assets / sales) Projected addition net income cash dividends X 1 − = projected sales X to retained earnings sales net income Discretionary financing = projected total assets – projected liabilities – projected owner’s equity needed (DFN) predicted change predicted change − DFN = in total assets predicted change − in spontaneous liabilities in retained earnings External financing needs (EFN) EFN = predicted change in total assets – change in retained earnings ...

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...‐ Accrual accounting: revenue is recognised as soon as the effort required to generate the sale is complete + certain of sale ⇒ lag between generation of revenue and receipt of cash ‐ Depreciation: costs for (ex buildings) are spread over the years ⇒ period defined by useful life, salvage value, method of allocation to be employed o ‐ ‐ Straight line ⇒ cos t total − salvationvalue lifetime o Accelerated ⇒ more depreciation in the early years an less later on Taxes: sometimes firms use different income statements for the tax and for the public shareholders o Taxes differ from the provisioned (higher/lower) o Can be used to shift tax payments to later years to use the finances in the business Research and development (R&D) ⇒ difficult to estimate the payoff o The cost have to be listed as an operating cost (united states) Sources and Uses statements Is not the same as income statement because ⇒ accruals, lists only cash flow associated with sale of goods with in the accounting period ‐ 2 balance sheets of a different date and note all the changes in account ‐ Segregate the changes into generated and consumed cash o Generate: reducing assets, increasing liabilities o......

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...has hundreds of functions and nobody knows them all, but spend some time and learn to create more powerful formulas. Students will dive into decision making functions like if() and lookup() and make Excel work for them! Students will also explore efficient use of multiple sheets in a workbook, creating multi-sheet and multi-workbook formulas. Students will learn about: if() functions, lookup() functions, conditional formatting, and using multiple worksheets in a workbook. 1. Course objectives. a. To provide the class with an exploration of spreadsheet design. b. To develop computer and spreadsheet literacy. c. To address the class' questions. 2. Schedule a. 9:00 Registration b. 9:30 Morning session c. 12:00 Departure 3. Handouts available in Adobe Portable Document Format (PDF) for download at www.crowleycomputers.com/handouts.htm 1. 2. Formulas: All formulas begin with = or basic math function a. Simple operators Monthly weather (1) + averages.xls (2) (3) * multiply (4) / divide (5) ^ exponent (6) = < > comparison b. Order of operator precedence (or Algebraic Order of Operations, for those of you as old as me!) determines what order calculations occur. (1) Calculations do not occur from left to right. (2) 3+4*5 does not equal (3+4)*5 (3) When you’re not sure, use (parenthesis) to force order of calculation. c. Edit via double clicking on cell, clicking on formula bar or F2 Operators ( in order of......

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