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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Written Analysis of the Case On AMFAC‚ INC. Submitted by: Irnabel R. Canoy Pauline Anne B. Ferrero Jocel Louis Castorico Submitted to: Prof. Rosfe Corlae Badoy Faculty-in-charge BA 206 – Managerial Accounting August 15‚ 2012 1. Current Ratio Current Ratio = Current Assets___ Current Liabilities = $ 86‚000_ 40‚000 = 2.15 The current ratio indicates the solvency of the company. Given the current ratio of 2
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Working capital management is crucial to a company’s goals and planning function. Proper management of working capital can mean that difference between a company’s ability to carry out pre-planned strategic goals and becoming stagnant and losing its competitive edge. A company’s current assets typically end up being its most liquid assets‚ which makes them some of the most valuable when it comes to making corporate decisions. Working capital management is defined as a “managerial strategy focusing
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activities of the business. These generally include fixed cost and variable cost. When companies amalgamate‚ their business operation expands. Such expansion helps them to use and manage the economies of large-scale production and distribution. Under operating economies: 1. Amalgamated companies optimally utilize their production and distribution capacity. 2. They also manage to reduce operating cost‚ management cost‚ personnel cost‚ etc. Hence‚ based on above discussion‚ we can say that
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Q1: How was Dell’s working capital policy a competitive advantage? Dell had a policy of working with low inventory and it used to make inventory purchases based on the sale orders received. This led to following advantages: No obsolete goods. Defects in raw material manufacturers were easily weeded out. New technological up gradations can be easily set into the system before the competition turns over the existing inventory. Thus Dell had a first mover’s advantage in being abreast with latest
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Capital market OF Bangladesh 1. Introduction A capital market is a market for securities (debt or equity)‚ where business enterprises (companies) and governments can raise long-term funds. It is defined as a market in which money is provided for periods longer than a year‚ as the raising of short-term funds takes place on other markets (e.g.‚ the money market). The capital market includes the stock market (equity securities) and the bond market (debt). Financial regulators‚ such
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consumption. Producers use capital until its marginal revenue productivity equals its opportunity cost in interest charges. These are Paretian optimal solutions for welfare maximization. Enjoy. Dr. Scott The Capital Market The previous chapter described how labor effort is not fixed in supply‚ but is a variable factor of production. By introducing the worker’s preference function for leisure and income‚ the model of the market economy expands. In this chapter capital is no longer treated
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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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| |Essay due date – Thurs‚ Wk 8 |Wk 8 | Preparation Question Analysis Essay topic: The issue of capital punishment is frequently debated in the media. Do you support or not support the reintroduction
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Capital Budgeting Capital Budgeting is done because companies need to make Acceptance/rejection decisions for buying fixed assets etc. Features of fixed assets : Investments upfront and returns take a long time. Risk is long term Expenses are indivisible and lumpy Ex. If HUL wants to put up a synthetic detergent plant of 50 cr. Rs. -> by spending 25 Cr. Rs.‚ the plant wont be operational at half the capacityS The Capex decisions are irreversible Projected P&L : Less Sales Raw Materials
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