Essays Tagged: "Capital structure"

An Audit Analysis

Managing Director), Bill Jackson (Finance Director) and Dave Chan (Operations Director).In terms of capital structure, the company relies significantly on the equity rather than debt in the year 2003. ... the complexity of valuation of Research and Development. The Research and Development cost has been capitalized even though the sales of the new machine have been disappointing.SWOT ANALYSISPotential ...

(7 pages) 225 0 3.0 Dec/2004

Subjects: Businesss Research Papers > Accounting

Pfizer corporation

Introduction2. Industry Environment3. Strategy4. Building Blocks Approach1) Short-term Liquidity2) Capital Structure and Long-term Solvency3) Asset Utilization4) Profit Margin5) Return on Investment5 ... end within the industry seems to be consolidations and mergers to offer broader ranges of products, capital to expand and share of the costs of R&D. Such mergers can lead to competitive advantages ...

(15 pages) 381 0 3.5 Mar/2005

Subjects: Businesss Research Papers > Case Studies

Capital Structure

CAPITAL STRUCTUREABSTRACTOver the years, numerous theories and studies on Capital structure have app ... wn the foundation by being the first to theorize the issue. In 1958 they put forward their "M&M capital structure irrelevance proposition." However, with this first attempt, they failed to include ... nkruptcy and it's attendant costs until the 'mainstream' Trade-off Model also (known as the Optimal Capital Structure model) emerges. While this approach has some valuable explanatory power, it fails ...

(61 pages) 784 1 4.6 May/2005

Subjects: Businesss Research Papers

The Cost of Capital is a critical element in business decisions.

The Cost of Capital is a CriticalElement in Business DecisionsA Report submitted in partial fulfilment of the re ... Loughborough University.November 2004ABSTRACTThis paper discusses the issue of whether the Cost of Capital is a critical element in business decisions through the topics of Capital Structure and the ... lement in business decisions through the topics of Capital Structure and the effects of the Cost of Capital on a company's competitiveness.Through the use of both qualitative and quantitative data, th ...

(16 pages) 625 0 4.1 Jul/2005

Subjects: Businesss Research Papers

Debt-Equity Mix Simulation: El Caf

Debt-Equity Mix Simulation SummaryIntroductionFinding the right balance is important. When talking capital structure decision, one must get the right blend of debt and equity. In this simulation prov ... s simulation provided by the University of Phoenix, I was asked to use the Weighted Average Cost of Capital (WACC), to find the optimal debt-equity mix for a café business known as El Caf&eacut ...

(3 pages) 460 1 3.9 Mar/2006

Subjects: Businesss Research Papers > Case Studies

Capital structure for Diageo

from the highest levels of Diageo, the treasury team was given the task of establishing the cost of capital for each of the different areas the company operated. The team had to create a simulation mo ... , treasury functions to focus on, what the firm's risk footprints will be, how to calculate cost of capital and finally how to optimally structure capital.How has Diageo managed its capital structure? ...

(8 pages) 235 2 3.4 Jun/2006

Subjects: Businesss Research Papers > Case Studies

Marriot Corporation Cost of Capital

1.Marriott uses its' cost of capital estimates to create a hurdle rate to effectively run operations. Marriott uses these estimat ... el assets, investing in projects that increase shareholder value, optimizing the use of debt in the capital structure and repurchasing undervalued shares. If the company uses its overall WACC it may h ... low their respective WACC which will result in losses and vice versa.2.The Weighted Average Cost of Capital (WACC) is as average that reflects the expected return on all of a companies securities. For ...

(4 pages) 616 0 2.3 Jul/2006

Subjects: Businesss Research Papers > Case Studies

Corporate Finance

not? Explain briefly.Question 2The Downtown Company has an equity beta, of 1.6 and 50% debt in its capital structure. The company has risk-free debt that costs 6% before taxes, and the expected rate ... eing considered, has an equity beta, , of 2.2 and has 80% debt, that costs 10% before taxes, in its capital structure. If Downtown finances 50% of the new project with debt, should it be accepted or r ...

(1 pages) 77 0 3.0 Sep/2006

Subjects: Businesss Research Papers

Financial Ratios Analysis

estors and indicate a level of risk. Wyeth is more leveraged (46 cents of every dollar of long-term capital is in the form of long-term debt) in comparison to the industry and health care sector. A si ... erm debt) in comparison to the industry and health care sector. A significant proportion of Wyeth's capital structure is financed by long-term, interest bearing debt, which makes them more vulnerable. ...

(6 pages) 613 0 4.6 Oct/2006

Subjects: Businesss Research Papers > Accounting

Financial Ratio Analysis of Metalrax Plc.

a decision whether invest a company or not; meanwhile, a bank would consider a company's return on capital employed before lending money. With significant accounting ratios, this paper assesses the p ... nificant accounting ratios, this paper assesses the profitability, liquidity, management of working capital and the capital structure of Metalrax Group plc and finally compares performance and financi ...

(7 pages) 134 0 5.0 Mar/2007

Subjects: Businesss Research Papers > Accounting

Role of the US Financial System

stem is a market for buying and trading of securities in the U.S economy for the purpose of raising capital for companies in financial need. Financial markets are generally separated into short-term a ... are divided into organized exchanges and over-the-counter markets. The long-term markets are called capital markets and consist of securities having maturities greater than one year. The most common c ...

(4 pages) 291 0 5.0 Apr/2007

Subjects: Social Science Essays > Economics

Determining the Debt-Equity Mix: El Caf

his paper is to identify the scenario(s), explain recommended solutions and summarize the different capital structure concepts addressed in the simulation by answering the two questions: why is WACC i ... ering the two questions: why is WACC important to an organization and what impact does WACC have on capital budgeting and structure?The Scenario and the Recommended SolutionScenario One: El Café ...

(3 pages) 414 0 2.6 May/2007

Subjects: Businesss Research Papers > Case Studies

Long-Term Financing Paper

Capital structure is one of the most complex areas of financial decision making due to its interrela ... e firm's goal of owner wealth maximization, the financial manager must be able to assess the firm's capital structure and understand its relationship to risk, return, and value. The term capital denot ... s on the right-hand side of the firm's balance sheet, excluding current liabilities, are sources of capital (Myers, 1994).Debt CapitalDebt capital includes all long-term borrowing incurred by the firm ...

(3 pages) 229 0 3.0 Aug/2007

Subjects: Businesss Research Papers > Marketing

Debt-Equity Mix Simulation Summary

eving the right balance of debt to equity plays an important role for a company to achieve a stable capital structure. The Weighted Average Cost of Capital (WACC) helps a company to find the appropria ... ps a company to find the appropriate proportion of debt and equity and provides the overall cost of capital for the company. (Financial Analysis, 2007). There is no "one size fits all" approach to app ...

(4 pages) 153 0 4.0 Nov/2007

Subjects: Businesss Research Papers

Cost of Capital at Ameritrade

Finance 5204Managing Corporate Capital Investment and Capital StructureCase1Cost of Capital at AmeritradeBy:Elaine HuangJonathan Hu ... y measure Beta and likewise risk.Using the stock price and returns data in Exhibits 5 and 6 and the capital structure information in Exhibit 4 estimate the equity beta βs, asset beta βa and ... e long term bonds for Rf. Since large company stocks capture a greater fraction of the total market capitalization it is a better proxy for the market portfolio. Since the life of the asset being anal ...

(3 pages) 64 0 5.0 Jan/2008

Subjects: Businesss Research Papers > Case Studies

Lester Electronics Financing Alternative Benchmark

ses can choose to finance activities of the company by issuing debt and equity. This determines the capital structure of the company, which is very important once the business begins to run. Cash flow ... imize shareholder's wealth as well as the company's revenues.Determine the Weighted Average Cost of CapitalThe weighted-average cost of capital (WACC) is a formula that helps a company to find out how ...

(25 pages) 286 0 4.0 Jan/2008

Subjects: Businesss Research Papers

Japanese capital structure and

TABLE OF CONTENTS INTRODUCTION Capital structure in Japan has been noted to be more highly leveraged than comparative North America ... hi Corporation, a core conglomerate that is part of the larger Mitsubishi Group keiretsu having the capital structure characteristics mentioned above. The report will first explore the circumstances t ... ve. The report will first explore the circumstances that may have induced Mitsubishi to its present capital structure, then look at more recent events and trends that may affect future financing decis ...

(19 pages) 78 0 0.0 Feb/2008

Subjects: Businesss Research Papers > Accounting

EVA Manual

EVA on operating unit level 3 1. Overview 3 2. NOPAT (Net operating profit after tax) 3 3. Invested capital 4 4. Cost of capital 6 5. Focus on Delta EVA 7 B. How to build up EVA on the Group and SBU l ... the Group and SBU level 8 C. Use of EVA in the XY management system 9 1. Management reporting 9 2. Capital expenditures 10 3. Portfolio analysis 11 Details of the EVA Calculation III. Appendix??????? ...

(29 pages) 68 0 0.0 Feb/2008

Subjects: Businesss Research Papers > Accounting

TATA MOTORS : FINANCIAL STATEMENTS ANALYSIS

………21•SHAREHOLDING PATTERN OF TATA MOTORS LTD. ……...22•CAPITAL STRUCTURE OF TATA MOTORS LTD. ……………22FINANCIAL STATEMENTS ... f last three years have been identified, studied and interpreted in light of company's performance. Capital Structure of the company, critical decisions of distributing dividends, issue of bonus deben ...

(28 pages) 204 0 4.5 Mar/2008

Subjects: Businesss Research Papers > Accounting

Debt and Equity

ics of the organization's dealings while ensuring that the organization's requirements are met.Debt CapitalDebt capital includes all long-term borrowing incurred by the firm. The cost of debt was foun ... as found to be less than the cost of other forms of financing. The relative inexpensiveness of debt capital is because the lenders take the least risk of any long-term contributors of capital. Their r ...

(2 pages) 155 1 3.5 Apr/2008

Subjects: Businesss Research Papers > Management