Corporate Tax‚ Cost of Debt‚ Cost of Equity and Capital Structure: A case study of REITs and conventional real estate firms in the UK University of Groningen Faculty of Economics and Business BSc International Business January 2013 Table of contents 1. Introduction 4 2. REITs 7 3. Literature Review 9 3.1 Capital Structure Irrelevance 9 3.2 Present Models 10 4. Data and Methodology 12 4.1 Regression 12 5. Findings and Discussion 16 6. Conclusion 20 7. Appendix
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the future cost of debt. Joanna calculated the cost of debt by taking the interest expense for 2001 and dividing it by the average debt balance. The cost of debt for Nike is the effective rate that it pays on its current debt‚ meaning the yield to maturity of bonds should be used to make an estimate instead of the average debt balance. Through the use of past data‚ the average balance of debt‚ the 4.3% before-tax cost of debt does not accurately reflect Nike’s current or future cost of debt‚ and
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Apparently‚ the issue of Nike’s case is to control and check the calculation cost of capital done by Joanna Cohen who is the assistant of a portfolio manager at NorthPoint Group. But I am willing to tell you that it can be a complex case in which we can doubt about sensitivity analysis done by Kimi Ford (portfolio manager) too. Because her assumptions such as Revenue Growth Rate‚ COGS / Sales‚ S &A / Sales‚ Current Assets / Sales‚ and Current Liability / Sales have been adopted from previous income
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Oana Mădălina PREDESCU Bucharest Academy of Economic Studies predescu_oana85@yahoo.com Stelian STANCU Bucharest Academy of Economic Studies stelian_stancu@yahoo.com Abstract. This paper examines both the benefits of choosing an internationally diversified portfolio and the evolution of the portfolio risk in the context of the current global financial crisis. The portfolio is comprised of three benchmark indexes from Romania‚ UK and USA. Study results show that on the background of a global economic
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Running Head: SURVEY ANALYSIS PAPER Organizational Cost Effectiveness Survey Analysis Paper Research and Evaluation I RES 341 April 2‚ 2007 Organizational Cost Effectiveness Survey Analysis This survey was administered to try and learn if our spending could become more effective is certain areas. The areas surveyed were areas where the largest amounts of spending continuing year after year. These are not necessarily areas that are being considered for reduction in
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Case Study: Cutting Cafeteria Costs A cafeteria at All-‐State University has one special dish it serves like clockwork every Thursday at noon. This supposedly tasty dish is a casserole that contains sautéed onions‚ boiled sliced potatoes‚ green beans‚ and cream of mushroom soup. Unfortunately‚ students fail to see the special
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the case of Darden’s Restaurant‚ they use four supply chain‚ so they get into Few Suppliers. Doing strategy with many suppliers suggest that rather than looking in the short term in order to lower costs‚ it’s better to establish long-term relationships with suppliers that are dedicated. Suppliers will better understand the long-term goals of the company and final customer. Big suppliers‚ with any commitment to the buyer‚ also willing to participate in the JIT system which provides the best possible
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Best Buy: BBY The Best Buy Company was founded by Richard M. Schulze and his partner. His Partner was Gary Smolaik. Richard M. Schulze was a former Air National Guard. Richard was at the age of 25 when he founded Best Buy. They found this company in the year 1966. In the beginning the store was named “Sound Of Music” and only sold home and car stereo equipment. In their first year they reached sells in excess of $160.00. In 1970 Richard became the sole owner of Best Buy by buying the other half from
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Clinic cost protection covers the costs caused on a patient’s healing facility stay‚ gave he/she as of now has a membership in such manner. No one has ever carried on with an existence time without an episode of disease and a consequent clinic sit tight. This is something unavoidable as nobody is superbly resistant to sicknesses. What’s more‚ every doctor’s facility stay one has carries with the release arrange a brain boggling bill - the mental impact of which is all that could possibly be needed
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The Wm. Wrigley Jr. Company: capital structure‚ valuation‚ and cost of capital Teaching Note Synopsis In June 2002‚ a managing director of an active-investor hedge fund was considering the possible gains from increasing the debt capitalization of the Wm. Wrigley Jr. Company. Wrigley had been conservatively financed and at the date of the case‚ carried no debt. The tasks for the student are to: Estimate the potential change in value from relevering Wrigley using adjusted present value analysis
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