CAPITAL STRUCTURE DETERMINANTS THE CASE OF THE KENYAN BANKING INDUSTRY TABLE OF CONTENTS 1. INTRODUCTION Capital structure refers to the mix of debt and equity which a firm uses to finance its operations. Many theories have been formulated with regard to whether there exists an optimal capital structure mix and the role the various determinants of capital structure play in deciding the mix. The Modern theory of capital structure began with Modigliani and Miller in 1958 (Harris
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corporate capital structure Advanced Corporate Finance 4.1 5 + 6 September 2013 Corporate finance: (1) managing the balance sheet Cash + Liquid assets Accounts receivable Inventory Short t Sh t term liabilities li biliti - short term debt - accounts payable Long term liabilities LT assets - fixed - non-fixed - financial Equity 1 8/30/2013 Corporate Finance at different levels + (2) managing the cash flow needs • Long term finance (LT investments‚ capital structure) investments
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u can maintain full control over the organizational structure of your business and you can also exert a strong influence over the company culture. Business owners need to understand the difference between the two because these aspects of your business can have a major influence on the firm’s success or failure. Basics The organizational culture of a business reflects the mentality‚ work ethic and values of the company’s owners and employees. Some firms are regarded as having a cut-throat
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Capital Structure Capital Structure‚ Interest Rates and Credit Ratings Prepared by Ece SARAÇOĞLU BILGI‚ MSc in International Finance INF 503 - Financial Economics and Interest Rates December 2012 TABLE OF CONTENTS I. II. III. a) b) c) d) e) f) g) h) i) j) k) l) m) n) o) p) q) IV. V. Why Capital Structure Matters To Investments How Debt and Equity Financing Differ Choosing Between Debt and Equity Financing Process Ownership rights Rights over profit Ease of doing business Repayment Cost to company
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declining level of industry demand and price‚ along with rising fuel prices and an economic recession. These pressures now force Du Pont to source its financing through debt‚ foregoing its risk averse capital structure policy in the past. It now aims to determine the most feasible capital structure that will enable it to finance capital expenditures vital to its competitive advantage while maintaing its financial flexibility. Du Pont now faces two alternatives: 1) Reduce the debt/total capitalization
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Managerial Finance – Problem Review Set – Capital Structure and Leverage 1) If a firm utilizes debt financing‚ an X% decline in earnings before interest and taxes (EBIT) will result in a decline in earnings per share that is larger than X. a. True b. False 2) Firm A has a higher degree of business risk than Firm B. Firm A can offset this by using less financial leverage. Therefore‚ the variability of both firms ’ expected EBITs could
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Organizational Structure Latoya Dale MGT/230 October 28‚ 2014 Chenise Hamilton Organizational Structure Organizations are set up in specific ways to accomplish different goals‚ and the structure of an organization can help or hinder its progress toward accomplishing these goals. Organizations large and small can achieve higher sales and other profit by properly matching their needs with the structure they use to operate. The three main types of organizational structures are functional‚ divisional
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ICT TECHNOLOGIES AND THE ORGANISATIONAL STRUCTURE‚ PROCESSES AND OUTPUTS 1. Introduction The ICT technologies and their constant evolution has placed substantial demands on the structure of the organisation. As a result the concept of organisational effectiveness is central to how an organisation combines ICT technologies and their organisational structure‚ processes‚ and outputs. The pace of change is so rapid that how organizations manage change is critical for their futures. In the rapidly
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Task 1: Understand the relationship between organizational structure and culture. P1.1: Compare and contrast different organisational structure and culture. According to Buchanan and Huczynski‚ an organisation is a ‘social arrangement for the controlled performance of collective goals’. Chester Barnard described an organisation as ‘a system of co-operative human activities’. Organisation are can be define as; ‘A deliberately formed group of human being with known boundaries and common goal’. Or
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company? Give examples The company I have taken in consideration is DHL Quality according to DHL is about having no errors in shipments‚ low product damage‚ on-time orders‚ high productivity‚ excellent alignment with customer requirements‚ and full regulatory compliance. With DHL‚ it’s also about finding ways to constantly move the bar higher. * DHL emphasize employee involvement and management engagement‚ throughout * DHL methods are applicable to a wide range of potential topics * Associates
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