THE IMPLICATIONS OF CAPITAL STRUCTURE THEORY AND REGULATION FOR SOUTH AFRICAN BANKING INSTITUTIONS By WESLEY NAIDU Submitted in partial fulfillment of the requirements for the degree MAGISTER COMMERCII in FINANCIAL MANAGEMENT SCIENCES In the FACULTY OF ECONOMIC AND MANAGEMENT SCIENCES At the UNIVERSITY OF PRETORIA SUPERVISOR: Prof. JOHANNES HvH DE WET November 2011 -i- ABSTRACT The topic of capital structure has been one that has plagued the academic world for a number of years
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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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the determinants of capital structure in plantations sector. Suggestion also include in this chapter for future research. 5.1 Conclusions This study examined the determinants of capital structure under plantations sector in Malaysia. It focused on plantation companies listed in main market of Bursa Malaysia during five years period from 2006 – 2010. The data is collected from companies’ annual reports. 200 observations has been done for 40 companies. The capital structure is determine by debt
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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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Assignment 1. Some of the key trends in the capital structure of India Inc. are as follows: Key observations: * Indian corporate employ substantial amount of debt in their capital structure in terms of the debt-equity ratio as well as total debt to total assets ratio. * As a result of debt-dominated capital structure‚ the Indian corporate are exposed to a very high degree of total risk as reflected in high degree of operating leverage and financial leverage and‚ consequently‚ are
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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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What long-term investments should the firm undertake (capital budgeting) and how will investment and finance decisions affect the firm ’s value (valuation)? How can cash be raised for the required investments? This is known as the financing decision ’ (cost of capital‚ capital structure and leasing). How will the firm manage its day-to-day cash and financial affairs (short-term financing and net working capital)? The Capital Budgeting Mini Case presents a financial decision of acquiring
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tructure CORPORATE FINANCE PROJECTPRACTICAL CONSIDERATIONS OF CAPITAL STRUCTURE OF A COMPANY IN INDIASubmitted to: Submitted by:Mr. Rajesh Jhamb Atul Pabbi 09104013Priyanka Bhola 09104043Rahul Mahajan 09104045Shreya Adya 09104052ACKNOWLEDGEMENTAn acknowledgement is not just a mere formality but a true opportunity to express my sincere gratitude towards all the people who have been of great help and have played an important role in making the training a great learning experience providing
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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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The Capital Structure of Chinese Companies 1. Introduction Capital structure is considered as a way to determine how a corporation financing its assets by issuing debt or equity. If the firm is entirely financed by the common equity‚ then it is so called an unlevered firmed‚ and its whole cash flow belong to its stockholders. If the firm financed both debt and equity‚ then it is so called a levered firm‚ and its cash flow will first goes to debt holders and then to stockholders. According to Brealey
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