FINA 5290 Derivatives Analysis Case 2: Williams Company 1. In July 2002‚ Williams faces a tough time. Williams engaged in many different types of energy activities‚ including the purchase‚ sale‚ transportation‚ transmission of energy-traded commodities (natural gas and liquids‚ crude oil‚ refined products‚ and electricity)‚ and exploration and refining. It also involved in the telecommunications service by running optical fiber throug old natural gas pipelines. The company grew impressively
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bookkeepers use different names for the same thing? (6 marks) Accumulated profits is profits that are not paid as dividend but is transfered over to the accounts for the next year. Also can be used to reinvest in the core of the business to help pay off debts or to purchase a capital asset. The reasons why accountants and bookkeepers use different names for the same thing is because bookkeepers are the people who record the financial transactions in a business in the form‚ of journals otherwise known as
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rupees 80 billion in unpaid loans to banks and tax authorities‚ employees had claims against the company for unpaid amounts. ANALYSIS Q1.Who is obliged to repay a company’s debts: the company‚ promoters‚ shareholders‚ or directors? ANS: Firstly if a director is complying with the law then the company is obliged to repay its debt as it is a separate legal entity from its directors‚ shareholders. Director’s will
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the big National Debt. The higher the debt the slower the economy grows. It is just like when we have huge credit card debt; we cannot go out or have fun because we have to pay the interest on the debt. Another problem with the economy is the money supply. As we print more money to support the economy‚ we make the chance of inflation greater. So now‚ we have high unemployment because the economy is not growing fast enough. The government is printing more money and adding to the debt to stimulate the
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sheet for one year‚ you can only use the one year number not an average. Assume interest expense is $0.00 Be careful of the Debt equity ratio. The review covers debt asset ratio as an example of how to calculate ratios and that is different from debt equit and that is different from the debt equity ratio so think about how you calculate the debt equity ratio using the debt asset ratio as an example. Be sure to cite your references Green boxes to be filled in by instructor Ratio Formula (express
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Your Life Did you know that the average credit-card holder in this country has ten cards‚ and the average family owes over $7‚500? That’s a record. And did you know that one dollar of every three in consumer debt is in credit cards? The fact is‚ credit card debt is rising faster than Americans’ income‚ and more folks are falling behind in their payments. So today I’m going to look at: why credit cards are a problem‚ and what you can do to make sure it’s not a
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Choice Between Debt and Equity Contracts • How Moral Hazard Influences Financial Structure in Debt Markets 1 Basic Facts About Financial Structure Throughout the World • The chart on the next slide shows how non-financial business get external funding in the U.S.‚ Germany‚ Japan‚ and Canada. • Notice that‚ although many aspects of these countries are quite different‚ the sources of financing are somewhat consistent‚ with the U.S. being different in its focus on debt. Sources of
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When people went to buy houses sometime mortgage-back securities were used‚ and these were sometimes held by banks overseas. When there was a great mass of people who could not pay back the debt‚ the banks holding these securities lost the money too. The banks depended on the debt to be paid back‚ but when it wasn’t banks failed. This occurred both in the United States and around the World. When the United State is in a recession‚ it is quite possible that other countries are in one
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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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growth by debt In 1976: a) Massey’s D/(Total capital) = 47%‚ Deere’s D/(Total capital) = 31.3% b) Massey’s coverage = 2.10‚ Deere’s coverage = 6.15 -Massey’s lenders: large‚ disorganized group (150 lenders from many countries) -Hence‚ Massey pursued risky product-market strategy + aggressive financial policy Massey Leading Competitors i) Deere -Deere saw the opportunity and decided to use it -Deere financed its expansion with debt‚ mostly short-term. By 1980 debt ratio
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