Activities Debt to Equity (Total Liabilities / Total Equity) [pic] This ratio measures the financial leverage of a company by indicating what proportion of debt and equity a company is using to finance its assets. A lower number suggests there is both a lower risk involved for creditors and strong‚ long-term‚ financial security for a company. Based on the debt ratio of Toyota‚ as of 2009‚ the debt ratio is much higher than of other financial year. The year to year debt ratio shows a declining
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III. Problem Statement With the company’s large ambitions‚ it is faced with a burdensome debt load‚ and insufficient resources to finance business expansion. IV. Alternative Courses of Action 1. Divest the following businesses: Nutrition & Consumer Products; and Pharmaceuticals in order to focus on Agriculture 2. Enter a joint venture with other industry players 3. Expand business through debt financing V. Analytical Tools 1. BCG Matrix 2. SWOT Analysis VI. Recommendation Thorough
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Structure (Million of USD) Market Cap 1‚134.07 ST Debt 13.78 LT Debt 352.63 Pref. E - Total 1‚500.48 Graph 2 According to the 2010 annual report‚ the weighted-average outstanding shares were 55‚070 thousand. The stock price of Oct‚ 2010 is 20.59. So‚ the market Cap of equity equals to 55.07 Million * 20.59 = 1134.07 Million. The Short-term Debt and Long term Debt come from the annual report and according to the notes
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B. Activity Ratio i) Inventory Turnover = Cost of Goods Sold Inventories Year 2009 Inventory Turnover = Cost of Goods Sold Inventories = 79.6 60 = 1.32 times. Comment: This ratio indicates that Aeon Company does not have an overstocking problem. A high turnover indicates great sales and hence exceeding their inventory. In year 2009‚ Aeon Company had restock their inventory for
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Question 1 With the use of Merton Model‚ the probability of Default (PD) of each firm is summarized as follow: Company Name | ASX Code | Probability of Default | Adelaide Brighton Limited | ABC | 0% | Buderim Ginger Limited | BUG | 26.079% | FFI Holdings Limited | FFI | 0.056% | McPherson’s Limited | MCP | 0.003% | Reece Australia Limited | REH | 0% | Vietnam Industrial Investments Limited | VII | 2.472% | Question 2 Using 15 Sep 2008 as a cut-off point‚ the pre and post results
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three most basic premises are managing personal cash flow‚ avoiding personal debt growth‚ and maintaining retirement savings rate. Creating a plan that accomplishes these three aspects of money management will‚ without doubt‚ help develop a path for
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default on his debt obligations. It considers factors‚ such as repayment history and credit score.” The financial dictionary (2017) has this to say‚ “The ability to borrow money. The better one’s creditworthiness‚ the more likely it is that a bank or other financial institution will extend credit.” Therefore‚ creditworthiness is an evaluation of credit risk of a prospective debtor‚ this can be an individual‚ a business or a government predicting its ability to pay back the debt and forecasting
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Bad Debts and Doubtful Debts Editorial This month we feature a topic that often causes students some difficulty‚ that of Bad Debts and a provision for Doubtful Debts. The writing off procedure for a bad debt is often handled competently by students in an examination environment but raising an initial provision for bad debts and its subsequent revision in the form of an increase or decrease can be difficult to deal with. This paper therefore should be of particular interest to our registered
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economy almost every household in the United States is struggling to pay off credit card debt. Do you feel like you are so deep in debt that you will never get out of it? Well‚ don’t bring yourself down. It’s not as hard as it seems. All you need is a little bit of dedication and knowledge. Get Rid Of Your Cards The first and biggest mistake most people make is that even after they realize they are drowned in debt they keep spending money. So you need to understand that it is very important that you
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Advantages Equity Financing: Debt financing allows you to pay for new buildings‚ equipment and other assets used to grow your business before you earn the necessary funds. This can be a great way to pursue an aggressive growth strategy‚ especially if you have access to low interest rates. Closely related is the advantage of paying off your debt in installments over a period of time. Relative to equity financing‚ you also benefit by not
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