Capital markets:Meaning: Capital markets are markets where people‚ companies‚ and governments withmore funds than they need (because they save some of their income) transfer those funds to people‚ companies‚ or governments who have a shortage of funds(because they spend more than their income). Stock and bond markets are twomajor capital markets. Capital markets promote economic efficiency bychannelling money from those who do not have an immediate productive use for it to those who do.Capital markets
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What’s your real cost of capital? By James J. McNulty‚ Tony D. Yeh‚ William s. Schulze‚ and Michael H. Lubatkin Harvard Business Review‚ October 2002 Issue of the article: valuing investment projects Number of pages: 12 Daniel Miravet Campos Part 1. Executive summary This article is fundamentally based on the exposition of a new method to calculate the cost of capital for a company (MCPM)‚ to meet the inefficiencies of the current one (CAPM). In valuing any investment project or
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TOPIC 6: CAPITAL ALLOWANCES Learning outcomes: At the end of this topic‚ students should be able to: i. Understand and identify the qualifying plant expenditure for plant and machinery. ii. Compute initial allowance‚ annual allowance‚ notional allowance and accelerated capital allowance. iii. Determine the balancing charge or balancing allowance on disposal of assets. 1.0 Introduction * Capital expenditure is not tax deductible. So‚ depreciation or amortization is also not deductible
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explaining the differences between revenue expenditures and capital expenditures during a useful life and identifying any similarities. Briefly explain the entries of revenue expenditures and capital expenditures. The difference between revenue expenditures and capital expenditures is that revenue expenditures are expenditures that are immediately charged against revenues as an expense (Weygandt‚ Kimmel‚ & Kieso 2010 pg. 409). Also capital expenditures are expenditures that increase the company’s
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Lesson 2.1 Which type of business takes resources from nature to make its products? Name several examples.Extractors take resources from nature to make their product. Some examples are oil refineries‚ coal‚ copper mines‚ and lumber mills. Why is raising capital critical to success of a business? One of the most challenging aspects of running a business is raising capital. Financial resources are needed to purchase buildings and equipment‚ hire and train employees‚ and obtain items needed for day
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CAPITAL GAINS According to income tax act 1961 ‘capital gains’ is the fourth head of income. Any profit or gains arising from the transfer of capital assets during the P.Y. shall be chargeable to income tax under the head capital gains and shall be deemed to be the income of P.Y. in which the transfer took place. Thus from a plain reading – Profits or gains earned on the sale of capital assets by an assessee during the P.Y. is called as capital gains. Meaning of Capital Asset: Capital asset means
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who have to write a research paper on capital punishment very often find this topic difficult‚ because they do not manage to analyze it properly. As a result‚ a great number of students hopes to find the answer to all questions connected with this problem in the Internet in the form of free samples on capital punishment‚ which are often of low quality‚ so be very careful reading them and use only for the improvement of your knowledge. The existence of capital punishment has always worried the society
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itaIf you were assigned to prepare a capital expenditure budget request to add a retail pharmacy in the hospital‚ which two individuals from your department(s) would you want to have on your team to help you? How would you utilize them to help you? Justify your response and include a minimum of one scholarly reference to support your answer. Respond to at least two of your classmates’ posts. Capital expenditure budget is An amount of money dedicated for capital items or permanent assets such as
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permanent current assets with long-term financing costing 10 percent. Short-term financing currently costs 5 percent. Lear’s earnings before interest and taxes are $200‚000. Determine Lear’s earnings after taxes under this financing plan. The tax rate is 30 percent. Answer: Earnings after taxes is $23‚875 b. As an alternative‚ Lear might wish to finance all fixed assets and permanent current assets plus half of its temporary current assets with long-term financing. The same interest rates apply as in
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Capital Leases vs. Operating Leases - What’s the Difference? Which One Should I Use for Equipment Leasing? Leasing equipment is a common alternative to purchase. Of the two kinds of leases - capital leases and operating leases - each is used for different purposes and results in differing treatment on the accounting books of a business. Capital Leases •Capital leases are used for long-term leases and for items that not become technologically obsolete‚ such as many kinds of machinery.
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