Introduction Capital structure (CS) is one of the most important aspects of the Financial Management of any organization. It aims is to identify and implement the best capital structure proportion possible that suits the organizations needs and objectives. An optimal Capital structure boosts the prosperity of the company in the long run and reduces the risk. CS is a mixture of a company ’s current and non current debt‚ common and preferred equity. It ’s the way a company finances its functions
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the determinants of capital structure in plantations sector. Suggestion also include in this chapter for future research. 5.1 Conclusions This study examined the determinants of capital structure under plantations sector in Malaysia. It focused on plantation companies listed in main market of Bursa Malaysia during five years period from 2006 – 2010. The data is collected from companies’ annual reports. 200 observations has been done for 40 companies. The capital structure is determine by debt
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PROCTER & GAMBLE GLOBAL BUSINESS SERVICES: A CASE STUDY A Time to Make a Change at P&G Some of the signs and signals experienced by an organization which indicates that it is time to make a change are: experiencing rapid growth or a decline in growth‚ a decline in productivity‚ a decline in resources‚ stakeholder pressures on management‚ environmental crises‚ sociopolitical influences on the organization‚ environmental turbulence and changes to customer expectations and behavior. The highly
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we will explain capital structure and determine weighted average cost of capital (WACC) from the assumption provided by Mary Francis. Furthermore‚ we will show how WACC and Capital Structure can be leveraged to find out the viability of the capital project. Additionally‚ we will explain marginal cost of capital. To close‚ we will make a recommendation on the best approach to apply to project evaluation between capital structure and WACC Capital Structure Capital Structure refers to the sources
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A review of capital structure theories 1.0 Introduction One of the most contentious financial issues that have provoked intense academic research during the last decades is the theory of capital structure. Capital structure can be defined as a ’Mix of different securities issued by a firm’ (Brealey and Myers‚ 2003). Simply speaking‚ capital structure mainly contains two elements‚ debt and equity. In 1958‚ through combining tax and debt factors in a simple model to price the value of a company‚
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Capital Structure In finance‚ the term “capital structure” refers to the way a firm finances its assets. Generally speaking‚ there are two main forms of capital structure: debt financing and equity financing (Cumming 52; Myers‚ 83). Each type has its own advantages and disadvantages‚ and an essential task for the successful manager of a firm is to find an optimal capital structure in terms of risk and reward for stockholders. When making decisions that affect capital structure‚ managers must be
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DATA ANALYSIS Population Size = 9 Samples from Unilever = 5 Sample from Procter & Gamble = 4 SAMPLE ANALYSIS QUESTION NO. AGREE AGREE DISAGREE DISAGREE NEUTRAL NEUTRAL UNILEVER P & G UNILEVER P & G UNILEVER P & G 1 5 5 0 0 0 0 2 5 2 0 0 0 2 3 5 5 0 0 0 0 4 5 5 0 0 0 0 5 5 5 0 0 0 0 6 5 1 0 1 0 2 7 5 5 0 0 0 0 8 5 2 0 0 0 2 9 5 5 0 0 0 0 10 5 1 0 1 0 2 QUES. NO. 15 16 17 18 19 HIGH HIGH LOW LOW MODERATE MODERATE N/A N/A UNILEVER P & G UNILEVER P & G UNILEVER P & G UNILEVER P & G 5 3 0 0 0
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Procter & Gamble and Disposable Diapers Introduction Post‚ Lawrence & Weber (2002‚ p.15) argue that business do not operate in a social or political vacuum. In fact most companies operate in a swirl of social‚ economic‚ technological and political changes that produces both opportunities. Coronado (2007) states that business is in fact part of society. Coronado further explains that business is an institution of society that affects and is affected by governments and other social actors. Therefore
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Capital Structure Financial Seminar DFI 605 Group Members Nidhi Batta D61/79041/2012 Caleb Musau Kivuva D61/79601/2012 Tom Mbuya Odundo D61/78251/2012 CathrineWanjiku Kamau D61/60682/2013 Daniel Mwangi Mwaniki D61/84153/2012 Ndiangui James Wambugu D61/79627/2012 Submitted to: Mr. Mirie Mwangi September - December 2013 Submitted in partial fulfilment of the requirements of the Masters in Business Administration degree at the University of Nairobi.
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Assignment 1. Some of the key trends in the capital structure of India Inc. are as follows: Key observations: * Indian corporate employ substantial amount of debt in their capital structure in terms of the debt-equity ratio as well as total debt to total assets ratio. * As a result of debt-dominated capital structure‚ the Indian corporate are exposed to a very high degree of total risk as reflected in high degree of operating leverage and financial leverage and‚ consequently‚ are
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