DEBT TO EQUITY PROPORTIONS In building the pool of funds for the business it is important to balance and optimize the proportions of debt and equity. The relationship between total debt and total equity is referred to as leverage or gearing. If there is too much debt‚ a business becomes highly leveraged with the implications of: • Repayment risk. The risk to debt providers increases as there is less of an equity buffer to absorb losses that the business may make. • Interest risk. The interest
Premium Debt
Apple History Steve Jobs and Steve Wozniak founded Apple on April 1‚ 1976 in Santa Clara Valley‚ California. The two built the Apple I out of a garage and sold it. The first Apple I computer did not include a monitor‚ keyboard‚ or casing. Due to the high demand for the Apple I‚ Jobs realized that there was a market for small computers. He also realized that he could market the company’s name and the computer’s user-friendly look. In 1977 Wozniak added a keyboard‚ color monitor‚ and eight peripheral
Premium Apple Inc.
DEBT AND EQUITY FINANCING PAPER JACQUELYN CREAGH ACCOUNTING 400 THERESA PEKRON August 1‚ 2011 Debt Financing Debt is when one party‚ the debtor‚ owes to a second party‚ the creditor. This usually refers to assets owed but the term can also be used figuratively to cover moral obligations and other interactions not based on economic value. Debt is usually granted with expected repayment of the original sum plus interest. The advantages of debt financing are that the company and/or
Premium Debt Finance Corporate finance
company has not adequately invested in developing tools to conduct market surveys; to develop effective marketing strategies‚ appropriate marketing programs and proper marketing communication to build its brand equity. 1. Costumer-based brand equity Keller (2003) defined customer-based brand equity as “the differential effect that brand knowledge has on customer response to the marketing of that brand”. When customers respond more positively to a product/service and the way it is marketed when its brand
Premium Marketing Brand Brand management
Raising Equity Capital When a private company decides to raise outside equity capital to fund there firm‚ they can turn several potential sources‚ these include Angel Investors‚ venture capital firms‚ institutional investors and corporate investors. Angel investors are individual investors who buy equity in small private firms (often friends of relatives) and are usually the first round of outside financing typically receiving a sizeable equity share. Venture Capital Firm (VCF) is a limited partnership
Premium Venture capital Stock market Initial public offering
Logos: Apple A very common sight for many people: The Apple logo. In the diagram on the separate sheet‚ we see how they used Fibonacci to make an aesthetically pleasing picture. The logo looks nice because of its rounded‚ almost spherical shape. Some would argue that it is perfect whereas others find it boring. Over the years the colours have changed from the rainbow stripes of 1976 to the monochrome of 1998. It had changed to be monochrome to look more professional as opposed to childish. It
Premium Color Apple Inc. Rainbow
Given its higher volatility‚ should we expect Microsoft to have an equity cost of capital that is higher than 10%? No‚ Microsoft is diversifiable and it will not be affected by the changes in the market. We do not expect Microsoft’s equity cost of capital to be higher than 10%. Each stock carries its own weight. B. What would have to be true for Microsoft’s equity cost of capital to be equal to 10%? In order for Microsoft’s equity cost of capital to be 10% its beta will have to be 1. 4. Suppose
Premium Investment Stock market Bond
Apple SWOT Apple’s Strengths * ITunes Online Store is an excellent source of revenue derived from sales of music and applications for Apple’s iPhone‚ IPad and iPod touch devices. * Excellent brand loyalty by its customers. Many own multiple products (Mac‚ iPhone‚ etc.) * No debt‚ excellent cash flow. $13bn Net Income in most recent quarter. (Dec 2011). * Excellent Research & Development division that is able to deliver (premium) products that customers will stand in line to buy
Premium Mobile phone Apple Inc. Smartphone
What are the exceptions to the maxim “equity will not assist a volunteer? Give factual examples to support answer and relevant cases. There are certain known exemptions to the rule that equity will not assist a volunteer . a) These are where the proposed donee has acquired title to the property by being chosen as administrator of the donor’s estate . That is if a donor has endeavored to create an instant bequest inter vivos to a donee which have not passed by reasons of the fact that the lawful
Premium Property law Property Gift
Equity is frequently referred to as a supplement to the common law. Cruzon defines Equity as a system of law developed by the court of chancery in parallel with the common law. It was designed to complement it‚ providing remedies for situations that were unavailable at Law. Because of this‚ Equity provided a dimension of flexibility and justice that was often times lacking because of the common law’s rigidity. This rigidity stems from the fact that‚ while courts sometimes altered their jurisdictions
Premium Common law Judge Jury