major theories on capital structure: By way of a conventional start‚ perhaps it would be worth our while to look at what "capital structure" actually means. In broad terms‚ it is essentially the firms ’ mix of debt and equity but it would be wrong to assume that this is all there is to it. These two terms belie the complexity that lies beneath‚ from the viewpoint of the decisions that any firm must take - that is to say‚ what kind of debt and which type of equity. Capital structuring would then
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we will explain capital structure and determine weighted average cost of capital (WACC) from the assumption provided by Mary Francis. Furthermore‚ we will show how WACC and Capital Structure can be leveraged to find out the viability of the capital project. Additionally‚ we will explain marginal cost of capital. To close‚ we will make a recommendation on the best approach to apply to project evaluation between capital structure and WACC Capital Structure Capital Structure refers to the sources
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A review of capital structure theories 1.0 Introduction One of the most contentious financial issues that have provoked intense academic research during the last decades is the theory of capital structure. Capital structure can be defined as a ’Mix of different securities issued by a firm’ (Brealey and Myers‚ 2003). Simply speaking‚ capital structure mainly contains two elements‚ debt and equity. In 1958‚ through combining tax and debt factors in a simple model to price the value of a company‚
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Introduction The context of this paper is to investigate the relationship between capital structure and firm performance on Malaysia plantations industries. According to Brealey and Myers (1988)‚ the capital structure will determine the survival of a business. Damodaran (2001) defined capital structure as the mix of debt and equity used to finance the operation of firms. Capital structure is closed link with corporate performance (Tian and Zeitun‚ 2007). Corporate performance can be measured by
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Capital structure describes how a corporation has organized its capital—how it obtains the financial resources with which it operates its business. Businesses adopt various capital structures to meet both internal needs for capital and external requirements for returns on shareholders investments. As shown on its balance sheet‚ a company’s capitalization is constructed from three basic blocks: Long-term debt. By standard accounting definition‚ long-term debt includes obligations that are not
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General Comparison between HDFC Bank and ICICI Bank HDFC Bank ICICI Bank Second largest private Sector bank largest Private Sector Bank Retail assets constituted 51.3% of advances in FY12. Retail assets constituted 34% of advances in FY12 Comparison on the basis of services:
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African Journal of Business Management Vol. 5(15)‚ pp. 6527-6540‚ 4 August‚ 2011 Available online at http://www.academicjournals.org/AJBM DOI: 10.5897/AJBM11.1012 ISSN 1993-8233 ©2011 Academic Journals Full Length Research Paper Capital structure and financing decision - Evidence from the four Asian Tigers and Japan Kuang-Hua Hsu1* and Ching-Yu Hsu2 1 Department of Finance‚ Chaoyang University of Technology‚ Taiwan‚ Republic of China 168 Jifong E. Road.‚ Wufong District‚ Taichung
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financial risks is the debt to total capitalization ratio. This ratio measures the portion of a company’s total capital structure that is financed by debts. The ratio is calculated as: According to the balance sheet dated May 31‚ 2014‚ Nike had a total debt of $1.373 billion‚ and total shareholders’ equity of $10.824 billion. Computing these numbers gives a debt to total capital ratio of 11.26%. The balance sheet of Nike shows that there is no preferred stock offered by the company but
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A PROJECT REPORT ON EVALUATION OF BANKING SERVICES OFFERED BY HDFC BANK Submitted To: KURUKSHETRA UNIVERSITY‚ KURUKSHETRA In the partial fulfillment of the requirement of B.Com with Vocational Subject (Banking & Insurance) Session : (2011-12) Submitted To: Submitted By: _____________ Urvashi Tyagi (Lect. of Com. Deptt.) B.Com IIIrd (BBI) (DAV College
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UNIVERSITY OF MUMBAI STUDY OF PERFORMANCE APPRAISAL SYSTEM OF HDFC BANK BACHELOR OF MANAGEMENT STUDIES TYBMS(2010-2011) SUBMITTED IN PARITAL FULFILLMENT OF REQUIREMENTFOR THE AWARD OF THE DEGREE OF BACHELOR OF MANAGEMENT STUDIES BY SHIVRATRI VINAYAK BHUMAIYA ROLL NO.31 GURU NANAK COLLEGE OF ARTS‚ SCIENCE AND COMMERCE GURU TEGH BAHADUR NAGAR‚ MUMBAI-400037 DECLARATION I Mr.SHIVRATRI VINAYAK BHUMAIYA THE STUDENT OF BACHELOR OF MANAGEMENT STUDIES (2010-2011) HERABY DECLARE THAT
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