Essays Tagged: "Debt to Equity"

Case study and analysis of a SME and the development of a sustainable business proposal.

nting & Finance:Strengths:·Long time & loyal customers always pay on time·Bad debts are less than 1% of sales·The company has three competitors whose manager/owners are al ... 40quality driven/slackTotal number of employees: 50 (approx)6.0 Financial Analysis :Leverage Ratios:Debt-to-assets indicates Eagle Box Company total borrowed funds as a percentage of total assets:Tota ...

(15 pages) 691 0 3.0 Feb/2003

Subjects: Businesss Research Papers > Case Studies

The Right Mix- Debt vs. Equity

ght BlendWeek 3 of Finance 325 required students to complete the simulation titled "Determining the Debt Equity Mix: The Right Blend." This simulation asked students to work through various stages of ... s to work through various stages of a newly started exotic coffee shop, while determining the right debt-equity combination and optimal Weighted Average Cost of Capital (WACC). Students were given own ...

(3 pages) 361 0 0.0 Mar/2006

Subjects: Businesss Research Papers > Case Studies

Debt-Equity Mix Simulation: El Caf

Debt-Equity Mix Simulation SummaryIntroductionFinding the right balance is important. When talking c ... ight balance is important. When talking capital structure decision, one must get the right blend of debt and equity. In this simulation provided by the University of Phoenix, I was asked to use the We ... ity 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 Café. During the simulation what seeme ...

(3 pages) 460 1 3.9 Mar/2006

Subjects: Businesss Research Papers > Case Studies

Determining the Debt-Equity Mix: El Caf

e; is challenged to raise adequate financing for two additional shops. The objective is to select a debt-equity mix that minimized the WACC. The recommended solution is to obtain a debt-equity mix of ... f return against the WACC. The recommended solution is to choose a 7 city expansion strategy with a debt-equity mix of 96.47% - 3.53% which provides a projected rate of return which is substantially h ...

(3 pages) 414 0 2.6 May/2007

Subjects: Businesss Research Papers > Case Studies

Debt-Equity Mix Simulation

Having the appropriate debt-equity mix is very important to the financial success of any business. One must give careful co ... portant to the financial success of any business. One must give careful consideration to the mix of debt and equity capital which your organization is to have. Although debt finance is cheaper, obtain ... cant security. One must also ensure that your organization is not too leveraged (i.e., the ratio of debt to equity is not too high).I recently completed a simulation exercise for FIN/325 titled Determ ...

(3 pages) 406 1 5.0 Sep/2007

Subjects: Businesss Research Papers > Accounting

Debt-Equity Mix Simulation Summary

Achieving the right balance of debt to equity plays an important role for a company to achieve a stable capital structure. The Weig ... . The Weighted Average Cost of Capital (WACC) helps a company to find the appropriate proportion of debt and equity and provides the overall cost of capital for the company. (Financial Analysis, 2007) ... ACC. The most appropriate decision can change with the situation, and a drastic modification of the debt-equity mix could be the only option for a company.scenario three years ago, the El Café ...

(4 pages) 153 0 4.0 Nov/2007

Subjects: Businesss Research Papers

The IPO Process

ust therefore look to external sources to raise this capital. The company can raise sources through debt, equity or a combination/hybrid of these.Often, raising capital through debt will not be a poss ... option, as the firm may be too risky, in which case the bank will not lend any money. Additionally, debt involves contractual servicing in the form of interest payments. If the firm misses one such pa ...

(20 pages) 102 0 3.0 Apr/2009

Subjects: Businesss Research Papers > Case Studies

The Financial Analysis of IHG

ayment Period4.4 Receivables Collecting Period4.5 Inventory Turnover Ratio5. Long- term Solvency5.1 Debt/Equity Ratio5.2 Gearing Ratio5.3 Interest Cover6. Shareholders' Investment6.1 Earning Yield6.2 ... funds to shareholders or reinvest in growth opportunities, while maintaining appropriate efficient debt levels.3. Profitability & Return On Capital Profitability & P3.1 Gross Profit Margin &a ...

(20 pages) 59 0 5.0 Jan/2010

Subjects: Businesss Research Papers

Role of Investment banker

s: origination, risk bearing, and distribution.Origination requires decisions about the type (e.g., debt, equity), quantity, price, timing, and other features of the new securities issue and the deter ...

(6 pages) 13 0 0.0 May/2011

Subjects: Businesss Research Papers > Markets & Exchanges