Unit-7 Capital Structure Program : MBA Semester :I Subject Code : MB0045 Book Id : B1134 Subject Name : Financial Management Unit number :7 Unit Title : Capital Structure 1 HOME C oEXT d e n t i a l N nfi MB0045-Financial Management Unit-7 Capital Structure Introduction • The capital structure of a company refers to the mix of long-term finances used by the firm. In short‚ it is the financing plan of the company. • The capital structure
Premium Finance Capital structure
their finance classes in particular. Critical operating and financial decisions cover the analysis of financial statements‚ calculation of cost of capital‚ generation of optimum capital structures for public and private firms‚ analyzing asset and firm valuations‚ corporate restructuring‚ evaluating potential merger and/or acquisition partners and capital raising strategies. Prerequisites: Fin 647 or Fin 652 and 6 credits of advanced finance electives Teaching Method This course uses a case study
Premium Case study Corporate finance Finance
banking has led me to see Islamic Banks in more detail. In this dissertation I will look at the financial structure of Islamic Banks. It will be studied that how the principle of “interest-free banking” affects the financial structure of Islamic Banks and Islamic Banks exhibit what kind of financial structure. 1.2 Objective The objective of this dissertation is to study the financial structure of Islamic Banks as they operate on a totally different basis from conventional banks. It will be seen
Premium Corporate finance Finance Fractional-reserve banking
Case Aspeon Sparkling Capital CASE 10 Water‚ Structure Inc. Policy INFORMATION Purpose This case‚ which in all aspects is identical to Case 9‚ illustrates the capital structure decision for a firm that starts with zero debt. Either Case 9 or Case 10‚ but not both‚ should be assigned. The primary analytical tool is valuation analysis‚ although the case briefly introduces the Modigliani and Miller (MM) with corporate taxes and Miller models. The case also illustrates financial risk by looking
Premium Finance Capital structure Corporate finance
Specific objectives : 1. Understand the tools in analyzing firm’s financial statements 2.Compute the expected rate of return for investment projects. 3.Apply several valuation methods to value projects and companies. 4.Evaluate the optimal capital structure of a firm. 5.Identify the best way to return money to shareholders. 2) Course Textbook(s)/ Resources: Main textbook/ resources: Fundamentals of Corporate Finance‚ Robert Parrino‚ David KidWell‚ Copyright 2009‚ John Wiley c) Coverage: 6
Premium Finance Corporate finance Capital structure
2.1 Strategy and Vision: Boeing’s mission statement states that they are the largest aerospace company and leading manufacturer of commercial airplanes and defense‚ space and security systems. It also talks about all of the countries that they support through exporting. Finally they talk about their products‚ their employees and their leadership. Boeing’s vision statement is to be the strongest‚ best and best integrated aerospace-based company in the world. Boeing’s corporate values include;
Premium Investment Pension Corporate finance
CHAPTER 12 QUESTIONS 12-1 Operating leverage affects EBIT and‚ through EBIT‚ EPS. Financial leverage generally has no effect on EBIT—it only affects EPS‚ given EBIT. 12-2 Because Firm A has a higher fixed operating costs‚ its operating income will change by a greater percentage than Firm B’s operating income if sales change. Firm A has a higher degree of operating leverage than Firm B. 12-3 If sales tend to fluctuate widely‚ then cash flows and the ability to service fixed charges
Premium Stock Debt Finance
skills Ensure understanding of the course material Provide hands-on experience with Excel It will cover three broad areas of study: Financial statements analysis and forecasting‚ and free cash flow valuation of the firm Capital budgeting Cost of capital‚ leverage and capital structure policy You will demonstrate your proficiency in each area via three exams and three case analyses (using Excel). This course provides an intensive introduction to corporate financial decision-making and will prepare
Premium Capital structure Corporate finance Discounted cash flow
growth capital‚ and privatization. In LBOs‚ they use capital structures to find the best combination of price‚ leverage and returns. In order to demonstrate a serious commitment and to achieve a desired rating‚ they decided in a minimum capital structure of at least 25% equity whereas debt is roughly 4 to 5 times EBITDA depending on market conditions. They also support its management by assisting in setting priorities right for the future of the firm‚ reviewing the organizational structure to ensure
Premium Discounted cash flow Inventory Free cash flow
4. ANALYSIS OF TESCO’S FINANCIAL PERFORMANCE AND CAPITAL STRCUTURE In this chapter‚ a brief review of Tesco’s financial performance will be given and‚ meanwhile‚ its current capital structure will be discussed. Moreover‚ factors of significant influence on the company’s capital structure are identified. Also‚ some recommendations on the company’s strategic development and optimal capital structure are suggested. As a good example of the UK’s supermarket chain‚ it is believed that the implication
Premium Supermarket Wal-Mart Hypermarket