SHARE CAPITAL Share capital is the Funds raised by issuing shares in return for cash or other considerations. The amount of share capital a company has can change over time because each time a business sells new shares to the public in exchange for cash‚ the amount of share capital will increase. Share capital can be composed of both common and preferred shares. Each share carrying a vote in the management of the business‚ managerial control may be limited. The authorized capital of a company is
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What long-term investments should the firm undertake (capital budgeting) and how will investment and finance decisions affect the firm ’s value (valuation)? How can cash be raised for the required investments? This is known as the financing decision ’ (cost of capital‚ capital structure and leasing). How will the firm manage its day-to-day cash and financial affairs (short-term financing and net working capital)? The Capital Budgeting Mini Case presents a financial decision of acquiring
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其A3 Diamond Chemicals PLC (A) and (B) Teaching Note Synopsis and Objectives These two cases present the capital investment decisions under consideration by executives of a large chemicals firm in January 2001. The A case (case 20) presents a go/no-go project evaluation regarding improvements to a polypropylene production plant. The B case (case 21) reviews the same project but from one level higher‚ where the executive faces an either/or investment decision between two mutually exclusive
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CAPITAL STRUCTURE: MEANING: - Capital structure of a firm is a reflection of the overall investment and financing strategy of the firm. - Capital structure can be of various kinds as described below: ▪ Horizontal capital structure: the firm has zero debt component in the structure mix. Expansion of the firm takes through equity or retained earnings only. ▪ Vertical capital structure: the base of the structure is formed by a small amount
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11 Allocation of Joint Costs and Accounting for By-Product/Scrap Objectives After completing this chapter‚ you should be able to answer the following questions: LO.1 LO.2 LO.3 LO.4 LO.5 How are the outputs of a joint process classified? What management decisions must be made before beginning a joint process? How is the joint cost of production allocated to joint products? How are by-product and scrap accounted for? How should not-for-profit organizations account for the cost of a joint activity?
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Capital Expenditure vs Working Capital Capital expenditures are money spent by a company to acquire long-term assets. It is neither for short-term gain nor can be easily translated into cash. These investments are inevitable to ensure the continuing business operations and also for future expansion of the company. Types of Capital Expenditures Typically‚ capital expenditure refers to the expenses that a company incurred to purchase tangible fixed assets and intangible assets. Additionally
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Venture capital (VC) is financial capital provided to early-stage‚ high-potential‚ high risk‚ growth startup companies. The venture capital fund makes money by owning equity in the companies it invests in‚ which usually have a novel technology or business model in high technology industries‚ such as biotechnology‚ IT‚ software‚ etc. The typical venture capital investment occurs after the seed funding round as growth funding round (also referred to as Series A round) in the interest of generating
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What are Capital Markets? Capital markets are markets where people‚ companies‚ and governments with more funds than they need (because they save some of their income) transfer those funds to people‚ companies‚ or governments who have a shortage of funds (because they spend more than their income). Stock and bond markets are two major capital markets. Capital markets promote economic efficiency by channeling money from those who do not have an immediate productive use for it to those who do. 1.
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SOUTH YORKSHIRE NEWSPAPERS PLC As external consultants you have been asked by the recently appointed non-executive directors to prepare a presentation making recommendations as to the future direction and consequent structure and organisation of the company. The presentation should cover all major aspects of their current and potential fields of operation that you consider important. The presentation will be made to the board of directors in the board room where full powerpoint facilities will
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Merriam-Webster online dictionary (2011) defines capital punishment as punishment by death for a crime. There are many factors that go into the process of capital punishment and it must start with a crime followed by an arrest‚ trial‚ conviction‚ appeals process and ultimately the execution of the individual. Through the many stages of the process there numerous individuals who are affected‚ including the criminal and their family‚ the victim and their family‚ jury‚ judge‚ witnesses and administrators
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