high‚ relative to book and past market values‚ and to repurchase equity when their market values are low. We document that the resulting effects on capital structure are very persistent. As a consequence‚ current capital structure is strongly related to historical market values. The results suggest the theory that capital structure is the cumulative outcome of past attempts to time the equity market. Introduction “Equity market timing” refers to the practice of issuing shares at
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By Ava Diepeveen Should Australia Re-introduce the Death Penalty? Capital punishment‚ also known as the death penalty‚ is the practise of executing someone as punishment for a serious crime after a legal trial(s). Humans are not perfect‚ humans are not always right‚ imperfect humans cannot give out perfect justice. As much as we may abhor another human beings action‚ is executing someone for killing someone else really the right thing to do? Two wrongs don’t make a right. When a country abolishes
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1.1. Definition of intellectual capital and a brief history of IC management Before someone can measure something‚ he/she has to know what to count. So how should intellectual capital be defined? A universally accepted definition is the first step toward standardization‚ but still it is hard to find the best one for "intellectual capital". In this section I ’ll define intellectual capital and study the history of its development. Intellectual capital is knowledge that can be exploited for
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SOLVENCY AND CAPITAL STRUCTURE Debt to total assets ratio Debts to total assets | 2011 | 2010 | Walt Disney Co. October* | 0.48 | 0.46 | Time Warner Inc. December* | 0.56 | 0.51 | Industry Average | 0.36 | 0.33 | The Debt to Total ratio measures the amount of debt a business has in proportion to assets and is also an indicator of financial leverage and shows the percentage of total assets that were financed by creditors‚ liabilities‚ debt. The debt to total assets ratio
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Capital Budgeting Meaning – Capital budgeting (or investment appraisal) is the planning process used to determine whether an organization’s long term investments such as new machinery‚ replacement machinery‚ new plants‚ new products‚ and research development projects are worth the funding of cash through the firm’s capitalization structure (debt‚ equity or retained earnings). It is the process of allocating resources for major capital‚ or investment‚ expenditures. One of the primary goals of
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2.5 Working Capital This section includes: Definition and classification of working capital Determinants of Working Capital Measurements of Working Capital Working Capital Financing Management of Working Capital Inventory management Cash Management Receivables Management INTRODUCTION : The term working capital is commonly used for the capital required for day-to-day working in a business concern‚ such as for purchasing raw material‚ for meeting day-to-day expenditure on salaries‚ wages‚ rents rates
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P8-1 a) Expected Rate of Return $ $ $ Y 55‚000 6‚800 55‚000 X Previous Market Value Cash Flow Current Market Value X 20‚000 $ 1‚500 $ 21‚000 $ Y 12.50% 12.36% X: rt = (Ct + P rt = ($1‚50 rt = 0.125 = b) Both investments are equally risky. Keel should recommend Investment X because it has a Pt - Pt-1) / (Pt-1) Y: rt = (Ct + Pt - Pt-1) / (Pt-1) 0 + $21‚000 - $20‚000) / ($20‚000) rt = ($6‚800 + $55‚000 - $55‚000) / ($55‚00 = 12.5%
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and Economics 31 (2001) 105–231 Capital markets research in accounting$ S.P. Kothari* Sloan School of Management‚ Massachusetts Institute of Technology‚ Cambridge‚ MA 02142‚ USA Received 22 November 1999; received in revised form 8 March 2001 Abstract I review empirical research on the relation between capital markets and financial statements. The principal sources of demand for capital markets research in accounting are fundamental analysis and valuation‚ tests of market efficiency‚ and the
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Methodology: SOURCE OF DATA: Database Dividend payment pattern of all IT companies that are listed for trading on one of the two major exchanges namely National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) during the period 2004-2008 (I refer each year henceforth with the end year i.e.‚ for 2004-2005 to 2005) are employed for analysis. The data has been sourced from Prowess database of the Centre for Monitoring Indian Economy (CMIE). For the purpose of this study‚only final dividend
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project is “The study of working capital management” The Gadag co-operative textile mill ltd established in 1972 by late shri.K.H.Patil at Hulkoti in Gadag district. It is producing main product as yarn. The company started with a production cost of RS.220lakhs.It is started producing yarn in the year 1973. A G.C.T.M has an arrangement of different department of the dependent parts of functions and their interrelation in the structure form to provide the necessary
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