Discuss the importance of good leadership for a successful business. Leadership is the composite of abilities and characteristics of an individual leader of the environment in which he operates and of the relationship developed between the leader and the led. It is very important to have good leadership for a business to succeed as employees will only follow a good leader and respond positively towards their direction. A good leader will have ability to obtain the highest quality from subordinates
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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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THE JOURNAL OF FINANCE • VOL. LIII‚ NO. 4 • AUGUST 1998 Agency Costs‚ Risk Management‚ and Capital Structure HAYNE E. LELAND* ABSTRACT The joint determination of capital structure and investment risk is examined. Optimal capital structure ref lects both the tax advantages of debt less default costs ~Modigliani and Miller ~1958‚ 1963!!‚ and the agency costs resulting from asset substitution ~Jensen and Meckling ~1976!!. Agency costs restrict leverage and debt maturity and increase yield
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Explaining Basic Accounting Concepts and Business Structures Laurie D. Melvin ACC/537 – Financial Accounting May 9‚ 2011 James Neuner‚ MBA One of the most important decisions to make when one chooses to start a business is knowing the type of legal organizations to select because the decision affects many aspects of the business. What can be affected are the amount and type of paperwork required‚ tax payments‚ possible personal liability
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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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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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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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trees‚ combat deforestation‚ restore their main source of fuel for cooking‚ generate income‚ and stop soil erosion. Professor Maathai incorporated advocacy and empowerment for women‚ eco-tourism‚ and economic development into the Green Belt Movement. Most of the people around the world are dependent on the forest for numerous reasons. Forests perform a significant role in stabilizing the environment‚ providing essential raw materials to include food‚ water‚ medicines and wood merchandises. It is important
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URBAN PATTERN Settlements of any size and type can always be formally synthesized by their patterns‚ so it means pattern identify the settlements. Town houses in gridiron blocks‚ high-rise office structures‚ academic campuses‚ suburban estates‚ and highway retail sprawl are good examples. Urban form‚ then‚ is a result of the bringing together of many elements in a composite totality:the urban pattern. Patterns are the outstanding formal features of urban areas. A pattern can be defined as
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Assignment in Health * Different Kinds of Phobias * Different Kinds of Disorders * 5 Axis of Mental Illness Jobelle R. Marasigan IV-INTEGRITY Different Kinds of Phobias Ablutophobia: It is a persistent and irrational fear of bathing‚ washing‚ or cleaning. The phobia is more common in women and children‚ especially with people who are extremely emotional
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