corporate capital structure Advanced Corporate Finance 4.1 5 + 6 September 2013 Corporate finance: (1) managing the balance sheet Cash + Liquid assets Accounts receivable Inventory Short t Sh t term liabilities li biliti - short term debt - accounts payable Long term liabilities LT assets - fixed - non-fixed - financial Equity 1 8/30/2013 Corporate Finance at different levels + (2) managing the cash flow needs • Long term finance (LT investments‚ capital structure) investments
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The Wm. Wrigley Jr. Company: capital structure‚ valuation‚ and cost of capital Teaching Note Synopsis In June 2002‚ a managing director of an active-investor hedge fund was considering the possible gains from increasing the debt capitalization of the Wm. Wrigley Jr. Company. Wrigley had been conservatively financed and at the date of the case‚ carried no debt. The tasks for the student are to: Estimate the potential change in value from relevering Wrigley using adjusted present value analysis
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International Research Journal of Finance and Economics ISSN 1450-2887 Issue 20 (2008) © EuroJournals Publishing‚ Inc. 2008 http://www.eurojournals.com/finance.htm The Impact of Dividend Policy on Shareholders’ Wealth R. Azhagaiah Faculty Member‚ Department of Commerce Kanchi Mamunivar Centre for Post Graduate Studies (Autonomous) (Govt. of Puducherry) Affiliated to Pondicherry Central University Puducherry – 605 008‚ South India E-mail: drrazhagaia@ yahoo.co.in Tel: ++91-0413 – 2255017; Fax:
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Asian Journal of Finance & Accounting ISSN 1946-052X 2012‚ Vol. 4‚ No. 1 Capital Structure and Firm Performance in the Financial Sector: Evidence from Australia Vedran Skopljak School of Economics and Finance‚ La Trobe University Kingsbury Drive‚ Bundoora‚ Vic 3086‚ Australia Tel: 61-3-9479-1111 E-mail: vedran.skopljak@latrobe.edu.au Robin H. Luo (Corresponding author) Department of Finance‚ Wuhan University Luojia Hill‚ Wuhan 430072‚ China Tel: 86-27-6875-2740 E-mail: robin.h.luo@gmail.com
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CHAPTER 10 Return and Risk: The Capital Asset Pricing Model (CAPM) Multiple Choice Questions I. DEFINITIONS PORTFOLIOS a 1. A portfolio is: a. a group of assets‚ such as stocks and bonds‚ held as a collective unit by an investor. b. the expected return on a risky asset. c. the expected return on a collection of risky assets. d. the variance of returns for a risky asset. e. the standard deviation of returns for a collection of risky assets. Difficulty level: Easy PORTFOLIO WEIGHTS
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Wm. Wrigley Jr‚ Company Capital Structure Wm. Wrigley Jr‚ Company Capital Structure 8/23/2013 8/23/2013 EFB340 Finance Capstone Case Study 1 Group S3 Dat Bui (N8360928) JeongHwan KWON (N8400822) Honghu Ye (N8106258) EFB340 Finance Capstone Case Study 1 Group S3 Dat Bui (N8360928) JeongHwan KWON (N8400822) Honghu Ye (N8106258) Table of Contents Abstract1 1.0 Introduction2 2.0 Analysis Share price2 Weighted Average Cost of Capital2 Earnings
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1. F. James McDonald the former president of the US automobile workers federation suggested an average reduction of 4% in the price of the car. The automobile market was weak‚ which resulted in unemployment. Lower price would lead to greater sales and stimulate employment. McDonald believed that a 4% reduction in price would increase sales by 16%.David black‚ representing the management of the automobile manufacturers disagreed with McDonald’s estimation. Black cited studies which indicated price
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ROI Project: Phase #1 Return on Investment (ROI): An examination of ROI financial analysis and its historical roots with the DuPont Company Return on Investment (ROI): An examination of ROI financial analysis and its historical roots with the DuPont Company Like it or not‚ with the current state of the economy‚ as well as‚ enforced implications of the Affordable Care Act‚ a large number of hospitals and healthcare agencies will close their doors for good this year. Perhaps
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responsibilities at all‚ other than to maximize their own profit. This view is called “Shareholder Theory”. Friedman argued that a company should have no social responsibility to the public or society because it’s only concern is to increase profits for itself and for its shareholders. He states that‚ when companies concern themselves with the community rather than focusing on profits‚ it leads to totalitarianism. In this traditional view of the firm‚ the shareholders or stockholders are the owners of
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EQCapj‚t Where‚ DPSj‚t refers to dividend per share for company j in year t; Dividendj‚t refers to amount of dividend paid by company j in year t; and EQCapj‚t refers to paid -up equity capital for firm j in year t.Equity capital is employed instead of the usual number of outstanding shares in the denominator as it facilitates comparison of rupee dividend paid per share by removing the impact of different face or par values Dividend payout ratio (PR) is
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