ABC’s capital expenditures and its financing 9 2.3. Comparison of ABC’s capital structure with similar companies 10 2.4. Characteristics of the company influencing the leverage policy 11 2.4.1. Tax advantage 11 2.4.2. Corporate tax rate 11 2.4.3. Earnings before tax and interest 11 2.4.4. Interest rate 11 2.4.5. Credit rating 12 2.5. Pecking order theory 13 2.6. Optimal capital structure 13 3.Dividend 14 3.1. Dividend policy
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Chapter 1 Note: the summaries at the end of each chapter are good study tools. Corporations A corporation is a permanent entity‚ legally distinct from its owners‚ who are called shareholders or stockholders. A corporation confers limited liability to its owners: shareholders cannot be held personally responsible for the corporations’ debts; they only stand to lose their investment. To incorporate‚ you work with a lawyer to prepare articles of incorporation‚ which set out the purpose of the
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Chapter 4 1. If you invest $1000 today at an interest rate of 10% per year‚ how much will you have 20 years from now‚ assuming no withdrawals in the interim? SOLUTION: n PV FV PMT Result 20 2. i 10 1000 ? 0 FV =6‚727.50 a. If you invest $100 every year for the next 20 years‚ starting one year from today and you earn interest of 10% per year‚ how much will you have at the end of the 20 years? b. How much must you invest each year if you want to have
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Chapter 21 Second Homecoming And The Liga Filipina Arrival in Manila with sister • June 26‚ 1892 : This was Rizal’s second homecoming‚ with him was his widowed sister Lucia (wife of the late Mariano Herbosa)‚ they arrived in Manila Rizal‚ being a meticulous diarist‚ described his second homecoming in Manila as follows: I arrived at Manila on 26 June (1892)‚ Sunday‚ at 12:00 noon. I was met by many carabineers headed by a major. There were in addition one captain and one sergeant of th Veteran
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Introduction to Corporate Finance 1. Two Questions: what investments should the corporation make and how should it pay for those investments? a. Investment decisions involve spending money and financing decisions involving raising money b. Concepts govern good financial decisions c. Financial managers value the shareholders’ investment opportunities outside their company because of the opportunity cost of capital contributed by shareholders d. All managers and employees need to pull together
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Chapter 7 Stock Valuation Solution to Problems P7-1. LG 2: Authorized and Available Shares Basic (a) Maximum shares available for sale Authorized shares 2‚000‚000 Less: Shares outstanding 1‚400‚000 Available shares 600‚000 (b) $48‚000‚000Total shares needed 800‚000 shares$60== The firm requires an additional 200‚000 authorized shares to raise the necessary funds at $60 per share. (c) Aspin must amend its corporate charter to authorize the issuance of additional shares. P7-2. LG 2: Preferred Dividends
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Chapter 9. Risk and resturn: lessons from market history Two forms of return on investment in shares: 1. Dividend. When a company is profitable‚ some of the profit is divided amongst the shareholders. This part is the income component of your return. 2. Capital gain/loss. This is the initial worth of the equity minus the end-of-year worth of the equity. This is the second component of your return.(also reffered to a negativ/positive CG) The total monetary return is the sum of the
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AP World History Chapter 21- Things to Know People to Know: Nicholas Copernicus- (1473-15430) A Polish astronomer and Aristotelian Scholar‚ who investigated the old geocentric theory that assumed that the sun‚ the planets‚ and the stars all circled the earth. Tycho Brahe- (1546-1601) A Danish astronomer‚ aided by his sister‚ Sophia‚ had recorded hundreds of observations that pointed to difficulties in the Ptolemaic explanation. He also attempted to find a compromise between the Ptolemaic
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CHAPTER 21 The Story of a Mother (Summary) Sisa ran quickly home‚ confused. She feared that the civil guards may have arrested his son Basilio already. When she reached home‚ she saw the two civil guards leaving with only her hen. She tried to walk past them but the civil guards caught her and demanded to know where her sons are. Sisa begged the guards for mercy‚ saying she does not know where her sons are nor does she have the gold coins they are accusing Crispin of stealing. With no other recourse
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Review Problems and Solutions for Chapter 6: Process Selection and Facility Layout For the following three problems (1‚ 2‚ 7)‚ we assume that parallel workstations are not allowed. 1. An assembly line with 17 tasks is to be balanced. The longest task is 2.4 minutes‚ and the total time for all tasks is 18 minutes. The line will operate for 450 minutes per day. a. What are the minimum and maximum cycle times? b. What range of output is theoretically possible for the line? c. What is the minimum
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