CHAPTER 1 - GLOBALIZATION โลกาภิวัตน์ (Globalization) คือ ผลจากการพัฒนาการติดต่อสื่อสาร การคมนาคมขนส่ง และเทคโนโลยีสารสนเทศ อันแสดงให้เห็นถึงการเจริญเติบโตของความสัมพันธ์ทางเศรษฐกิจ การเมือง เทคโนโลยี สังคมและวัฒนธรรมที่เชื่อมโยงระหว่างปัจเจกบุคคล ชุมชน หน่วยธุรกิจ และรัฐบาล ทั่วทั้งโลก ซึ่งทำให้เกิดกระบวนการที่ประชากรของโลกถูกหลอมรวมกลายเป็นสังค มเดี่ยว ประกอบด้วย 2 ชนิด คือ Globalization of Markets และGlobalization of Production Globalization of Markets คือ การที่ตลาดในโลกมีความคล้ายคลึงกันมากขึ้น
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CHAPTER 13: CAPITAL STRUCTURE AND LEVERAGE 1. A firm’s business risk is largely determined by the financial characteristics of its industry‚ especially by the amount of debt the average firm in the industry uses. a. True b. False ANSWER: False 2. Financial risk refers to the extra risk borne by stockholders as a result of a firm’s use of debt as compared with their risk if the firm had used no debt. a. True b. False ANSWER: True 3. A firm’s capital structure does not affect its free cash
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high‚ relative to book and past market values‚ and to repurchase equity when their market values are low. We document that the resulting effects on capital structure are very persistent. As a consequence‚ current capital structure is strongly related to historical market values. The results suggest the theory that capital structure is the cumulative outcome of past attempts to time the equity market. Introduction “Equity market timing” refers to the practice of issuing shares at
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debt to total capital approaching 70%‚ as opposed to a target ratio of 60%. While some investors welcome HCA’s more aggressive use of leverage‚ others are worried that HCA’s capital structure could decrease the company’s current A bond rating. As a result of increased debt‚ a decline in HCA’s first-quarter earnings per share could occur. The company faces the problem of deciding what should be done to its capital structure and whether reducing the ratio of debt to total capital to match the target
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Executive Summary IBM and Accenture are both huge companies and uses five factor DuPont analysis to achieve a return on equity. IBM has a higher return on equity than Accenture‚ and therefore the management are more efficient in generating shareholder value per dollar invested. However both the companies are performing better than the industry average. IBM does also take lesser number of days to convert cash on hand compared to Accenture and industry average. But‚ Accenture is taking more days
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solutions to IT issues. It also undertakes research for new technologies‚ both software and hardware and thus transforming them into new products. IBM was incorporated in the State of New York on June 16‚ 1911 as the Computing-Tabulating-Recording Co. (C-T-R). In 1924‚ C-T-R adopted the name International Business Machines Corporation. [ibm.com: 2011]. In 2010‚ IBM was ranked the 20th biggest firm in the US by Fortune Magazine. It currently employs 400‚000 people‚ working in different fields providing various
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Du Pont Case Study Capital Structure Statement of the Problem Determine a capital structure policy suitable for Du Pont in the 1980s and beyond. This paper will consider the history of the company and the turbulent times of the 1960s and 1970s‚ weigh the advantages and disadvantages associated with higher and lower levels of debt‚ and develop a strategy for the future after the merger with Conoco Inc. in 1983. Executive Summary Du Pont has been historically known for its
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The Armstrong Production Company is an industry-leading firm in the field of manufacturing synthetic building materials for homes and commercial structures‚ based near St. Louis. Armstrong was fortunate in its initial stages to quickly secure inexpensive funding in the form of developmental loans issued by the State of Illinois‚ and thus was able to break even within three years of its founding in the early 1970s. Able to pour resources into its research and development segment‚ riding on the increasing
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MM with capital structure In 1958‚ Modigliani and Merton Miller in their classical paper “The Cost of Capital‚ Corporation Finance and the Theory of Investment”‚ talked something about capital structure as follow: Consider any company j and let Xj stand as before for the expected return on the assets owned by the company (that is‚ its expected profit before deduction of interest). Denote by Di the market value of the debts of the company; by Sj the market value of its common shares; and by V j
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Chpt.16 Financial Leverage and Capital Structure Financial Leverage Chapter Outline Financial Leverage Effect of leverage Break-even Analysis Homemade Leverage M&M Propositions (I & II): optimal D/E? No tax Corporate tax Corporate tax & bankruptcy costs Corporate & personal taxes Arbitrage The Capital-Structure Question and The Pie Model The value of a firm is defined to be the sum of the value of the firm’s debt and the firm’s equity. V=E+B If the goal of the management of the firm is
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