The Capital Structure of Chinese Companies 1. Introduction Capital structure is considered as a way to determine how a corporation financing its assets by issuing debt or equity. If the firm is entirely financed by the common equity‚ then it is so called an unlevered firmed‚ and its whole cash flow belong to its stockholders. If the firm financed both debt and equity‚ then it is so called a levered firm‚ and its cash flow will first goes to debt holders and then to stockholders. According to Brealey
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Analysis and Evaluation: Financial Performance of Cathay Pacific 2012 Contents Introduction …………………………………………………………… P.3 Liquidity Ratios ……………………………………………………….. P.3-6 Financial Leverage Ratios ……………………………………………... P.6-7 Profitability Ratios ……………………………………………………... P.8-9 Market-based Ratios ……………………………………………………. P.10-11 Dividend Policy Ratios …………………………………………………. P.12-13 Conclusion ……………………………………………………………… P.13-14 Reference
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disadvantage. During the past three years AGI’s revenue has grown at an average annual rate of only 2.2% while the industry average is about 9.7%. Liedtke believes that acquiring Mercury Athletic Footwear would double AGI’s revenue‚ increase its leverage with contract manufactures‚ and expand AGI’s presence in relators and distributers. Before acquiring Mercury Athletic Footwear‚ Liedtke wants a complete evaluation of the opportunity. Quantitative Analysis An effective method of quantitatively
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What Is a Reportable Segment? A reportable segment is a phrase that relates to international accounting procedures. An exploitable segment is a portion of a business that generates its own revenues and expenses and has its own assets and liabilities. A reportable segment is an exploitable segment that makes up at least 10 percent of the overall business’s revenues or assets. In effect‚ a reportable segment is like a business within a business. International accounting standards require that public
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Ballesteros‚ Ted Maducdoc‚ Gervi Valdecañas‚ Francesco Adel Yau‚ Matthew MFIMET2 K31 Topic: The impact of the subprime mortgage crisis on the financial sector of US. INTRODUCTION I. Background of the study The Sub Prime Mortgage Crisis maimed the US Economy as house prices were inflating exponentially; a bubble in financial terms. This eventually burst and causing the assets tied to the different real estates to shrink and devaluate. A financial crisis as such had been one of the
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then compared to previous years. Ratio analysis conducts a quantitative analysis of information in a company’s financial statements. These Ratios are most commonly used in banking sector can be divided into five main categories Liquidity Ratios Leverage Ratios Profitability Ratios Activity Ratios Market Ratios A) Liquidity Ratios Liquidity Ratios are used to determine a company’s ability to meet its short terms obligations. These include; 1) Current Ratio 2) Acid Test Ratio 3) Working
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Customer‚ and Leverage Supplier Discount and declined Tighten Accounts Receivable‚ and Drop Poorly Selling Products . Below is a synopsis of how each opportunity affected your Working Capital and Cash Flow. Acquire a New Customer Taking on Atlantic Wellness as a new customer increased sales significantly but resulted in higher accounts receivable and inventory balances. Revenue’13’14’1503K5K Opportunity EBIT’13’14’150200400 Opportunity Free Cash Flow’13’14’150-2K-1K1K Leverage Supplier Discount
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Interpreting Financial Results By Richard Stewart FIN 571 March 10‚ 2015 Dale Hilken Interpreting Financial Results A company’s financial ratios play a significant part in determining how the business is doing on a financial basis (Parrino‚ Kidwell‚ Bates‚ 2012). The financial ratios will show the positive and negative financial status of the company. This paper will show the ratios for Family Dollar Stores and the stability over two
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Tangshan Mining is considering changing its capital structure if it would benefit shareholders. The firm estimates that if it increases the debt ratio to 50 percent‚ it will increase its expected dividend to $5.24 per share. Because of the additional leverage‚ dividend growth is expected to increase to 6 percent and this growth will be sustained indefinitely. However‚ because of the added risk‚ the required return demanded by stockholders will increase to 11.34 percent. (a) What is the value per share
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FINA 6273 (Part 2) CASES IN FINA. MGMT & INVT BANKING WINFIIELD REFUSE MANAGEMENT‚ INC. Instructor: Prof. Neil G. Cohen Prepared by: Jin Yikai Oct 27 2014 1. What are the annual cash outlays associated with the bond issue and the stock issue? Sheen’s idea (finance with bond) is to issue $125M bond with an annual interest rate of 6.5% and mature in 15 years. Annual principal repayment is $6.25M and leave $37.5M outstanding at maturity. The cash outlay is $6.25M every year besides the interest
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