Managerial Finance – Problem Review Set – Capital Structure and Leverage 1) If a firm utilizes debt financing‚ an X% decline in earnings before interest and taxes (EBIT) will result in a decline in earnings per share that is larger than X. a. True b. False 2) Firm A has a higher degree of business risk than Firm B. Firm A can offset this by using less financial leverage. Therefore‚ the variability of both firms ’ expected EBITs could
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Cement prices rise in North and Central India; Andhra Pradesh surprises positively After a damp August season‚ cement prices increased steadily in September. The month of October saw the trend continuing in most regions of the country. Surprisingly this phenomenon was witnessed in Andhra Pradesh as well which has been a not-so-profitable region for the cement makers. All India prices at Rs 299 per 50 kg bag‚ was up 1.7% on a month-on-month (mom) basis. The discipline in pricing among the cement
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Chpt.16 Financial Leverage and Capital Structure Financial Leverage Chapter Outline Financial Leverage Effect of leverage Break-even Analysis Homemade Leverage M&M Propositions (I & II): optimal D/E? No tax Corporate tax Corporate tax & bankruptcy costs Corporate & personal taxes Arbitrage The Capital-Structure Question and The Pie Model The value of a firm is defined to be the sum of the value of the firm’s debt and the firm’s equity. V=E+B If the goal of the management of the firm is
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CORROSION OF CEMENT PASTE In general terms cement products have good durability‚ but their strength will decrease or even damage structures with the role of some erosive media (such as soft water‚ acid water)‚ known as the erosion of cement paste. The main reasons for corrosion are: Soft-water Corrosion (Dissolution Corrosion) Rain‚ snow‚ distilled water‚ industrial condensate water‚ and the river water and lake water with low bicarbonate content‚ all of them belong to soft water. When hardened
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30017 Corporate Finance Hannes Wagner The included PDF files are examples of case study write-ups made by students of the 30017 Corporate Finance course in 2012-2013. The underlying case was “Hutchison Whampoa Limited: The Capital Structure Decision”. The write-ups were evaluated as “excellent” and the students have agreed for their work to be distributed. All rights to their work remain with them. The instructions that students received were the following: “Your assignment is to provide a written
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A company with low gearing is one that is mainly being funded or financed by share capital (equity) and reserves‚ whilst the one with a high gearing is mainly funded by loan capital. Now the question to address is which of the two (equity and debt) is cheaper to the company? The answer is that cost of debt is cheaper than cost of equity. This is because debt is less risky than equity and the tax advantage of debt over equity as discussed below: Risk: debt is less risky than equity because: • the
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invented in 1824 by Joaeph Aspdin‚ an English Mason. He named the product as Portland cement as its color resembled to the rock found in Portland‚ a place in England. Concrete is the second most used commodity in the world after water. During 2000-2001‚ it is estimated nearly 1 ton of concrete is used by each person on earth. The production of cement is presently estimated at 2000 Million Tons. The strength of cement when it was invented was about 10 MPa which has Continuously increased to 75-80 MPa
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investment in working capital. Managing working capital effectively is therefore a vital part of making sure that business has enough cash to continue (Oliver‚ 2009). Working capital can be regarded as an engine of a business‚ it is the cash needed to pay for the day-to-day operation of the business (Jorne‚ 1992). The continuity of a business existence largely depends on the management of its working capital; inadequate working capital enervates the operations of a business. Working capital is current assets
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Draft Guidelines for Co-processing of Distillery spent wash concentrate in Cement Industry Central Pollution Control Board (Ministry of Environment & Forests‚ Govt. of India) Parivesh Bhawan East Arjun Nagar‚ Delhi 1. Background Co-processing of wastes in cement kiln is emerging as one of the environment friendly alternative disposal method in the recent years. Distillery spent wash has high organic content and dissolved inorganic solids which require careful handling and proper disposal
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AIM iC BS E.c om To Study the Setting of Cement CERTIFICATE Mr. B D Kotwani iC Principal BS E.c om This is to certify that this project work is submitted by ROHIT GUPTA to the Chemistry department‚ Aditya Birla Public School‚ Kovaya was carried out by him under the guidance & supervision during academic year 2009-2010. School (Head of chemistry dept.) Kovaya Aditya Birla public ACKNOWLEDGEMENT E.c om I wish to express my deep gratitude
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