CASE 6 Asian Journal of Case Research 1(2): 183 – 192 (2008) Tenaga Nasional Berhad’s Debt Woes NORDALILAH ABD AZIZa‚ ANNUAR MD NASSIRb*‚ AZHAR MOHD NASIRc‚ AND ABU SOFIAN YAAKOBd ABSTRACT Currently‚ as a result of global price escalation of coal and fuel/gas‚ TNB faced a challenging time dealing with increased operational costs as well as managing the existing high debt to support its daily operations. Because of these high borrowings‚ TNB was exposed to excessive financial risks in particular
Premium Electricity generation Malaysia Cash flow
EMBA 8500 #1 Book value of debt Book value of equity Market value of debt Market value of equity Pretax cost of debt After Tax cost of debt rd Market value weights of: Wd Debt We Equity bL Levered beta Rf Risk-free Rate Market Premium RM Ke Cost of equity WACC EBIT - Taxes (34%) EBIAT + Depreciation - Capital expense Change in Net Working Capital Free Cash Flow Value of Assets ( FCF/WACC) CASE # 31 0% Debt 100% Equity $ $ 20‚000 $ $ 20‚000 7.0% 4.62%
Premium Generally Accepted Accounting Principles Corporate finance Finance
Public debt indicates the amount of outstanding debt instruments that are issued by the government anytime during the past but not yet repaid. (Seater‚ 2008) Incurring public debt is a regular phenomenon in managing fiscal and the monetary policy of an economy leading to governments borrowing money from local and international institutions to cover the public deficit. (Kumhof and Tanner‚ 2004) Mostly the lenders to the government are the financial intermediaries of the country where Kumhof and Tanner
Premium Economics United States public debt Investment
structure by raising the debt and using it to pay the dividends or buy back the shares. As a part of evaluating they wanted to find if they are inefficiently financed or not. Under the proposed recapitalization‚ Wrigley would borrow $3 billion and use it either to pay equivalent dividends or to repurchase equivalent shares. Chandler‚ an associate in Aurora Borealis‚ was calculating the impact of this debt on the company. This would affect firm’s share value‚ cost of capital‚ debt coverage‚ earnings per
Premium Stock market Finance Stock
Student debt in on the rise. It arises from the increasing college tuition costs. It makes college attendance prohibitive to many people. Additionally‚ it translates to a higher student loan debts. College is expensive‚ to a point that many people consider it a dream come true to attend college. The current developments in the world mean that there are an ever-increasing number of new courses. Moreover‚ the costs are on the rise to remain current with educational developments. Individuals who are
Premium Higher education University College
Teenagers have too much freedom? This I do not agree with and in my essay I will discuss why people might think this‚ the responsibilities that restrict teenager freedom‚ there expectations and how it is just parent to afraid to let their children go. First of all teenagers have a lot to deal with and have a lot of responsibilities. They have jobs‚ going through puberty. And on top of that they are trying to prove them selves responsible and grown up to their parents. A lot more teenagers are
Free Adolescence Puberty Young adult
one of America’s great revolutionary individualists‚ Ralph Waldo Emerson‚ an original liberal from Massachusetts‚ or the Sage of Concord as he was more commonly known in his day. He wasn’t the handsomest man alive… but his message made him more famous and more popular than any American Idol. He said things like: “A man should learn to detect and watch that gleam of light which flashes across his mind from within‚ more than the luster of the firmament of bards and sages.” “Trust thyself: every heart
Premium Ralph Waldo Emerson Plato Psychology
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
TV & Children: Television‚ Health and Development How does television affect the health of our children? Children from birth to age five are actively growing‚ learning and developing habits that will shape their physical and emotional health. Because this time period is so crucial to the development of a child’s body and brain‚ any negative influences can have lifelong health effects (1). Excessive television viewing among young children has been linked to negative impacts on early
Free Obesity Nutrition Childhood
TOO MUCH MONEY IS SPENT ON TOYS AND GAMES All around the world‚ in every country and every culture‚ it is important kids can play with toys and games and learn how to have fun. A vital and essential part of learning and development comes from experimenting with games and toys. However‚ in some countries too much money is being spent on toys and games. Far too many children‚ and adults‚ have too many toys and games than necessary and instead of learning from toys; it is stopping kids from developing
Free Play Learning Game