Exercise on Unit 2 – Theories of Capital Structure 1. Companies U & L are identical in all respect except that U is unlevered while L is levered. Company L has Rs. 20 Lacs of 8% debentures outstanding. Assume a. All MM assumptions are met b. Tax rate is 35% c. EBIT is Rs. 6 Lacs d. Equity capitalization rate of company U is 10% Find the following: a. Value of each firm according to MM approach b. Suppose Value of U is Rs. 25 Lacs and Value of L Rs. 35 Lacs. According
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decision would not deviate from the company’s target and that strategies are for its long-term performance. However‚ due to this unique structure and the company’s election procedure‚ the independence of management of board of director cannot be guaranteed and the interests and rights of public shareholder might not be protected. In conclusion‚ the governance structure of Alibaba group is overall good. The management of company put more emphasis on the companies’ long term behavior because they are influenced
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Framework for competitor analysis Q: Explain the framework for competitor analysis.-05 / develop a framework for competitor analysis and discuss how it helps a firm to develop a competitor profile.-05 Competitor Analysis Framework Michael Porter presented a framework for analyzing competitors based on the following four key aspects of a competitor‚ depicted in the diagram. Objectives and assumptions are what drive the competitor‚ and strategy and capabilities are what the competitor is
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Chrysler’s right organizational structure: Chrysler Group LLC is an American multinational that produces car‚ and its headquarters is situated in Auburn Hills‚ Michigan. Chrysler was first organized as the Chrysler Corporation in 1925. In 2009‚ Chrysler announced the merger between Fiat and itself. The change in the management and in the leadership implies need of improvement in the management sector. Managers and supervisors’ function are the most crucial considering the situation. It hence implies
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introduction to Vaulted Structures Arches‚ Vaults and Domes (AVD) have been used since millennia worldwide. With the developments in the 20th century of reinforced cement concrete‚ tensile and steel structures‚ vaulted structures have been left aside since then. The Auroville Earth Institute attempts to revive these techniques‚ shapes and skills of builders with these aims: Segmental vault‚ 10.35 m span‚ at Deepanam School‚ Auroville • Bring a worldwide awareness about the possibilities
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The molecular structure of water is bent triatomic. A bent triatomic structure occurs when the two unshared pairs of electrons in water repel each other as well as the two O-H bonds‚ which also repel each other to assume a bent triatomic shape. Water occurs in three of the four states of matter‚ liquid‚ solid‚ and gas. The molecules in solid water are attracted insubstantially to each other. The molecules are organized in a crystalline structure. The energy of ice molecules is not very abundant.
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Airline for 4 consecutive years (AirAsia 2012). The Low budget fares are structured in the way that all fares are quoted one way to allow customers the flexibility to choose where and when they would like to fly. It also adopts a simplistic fare structure based on the time value relationship for seats. The earlier a person book the ticket‚ the cheaper the fare will be. The first few tiers are targeted to value conscious passengers so that they can get extremely cheap tickets if they book earlier.
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Environment (IFAS Table; see Exhibit 2) A. Corporate Structure 1. BBY corporate structure has many subsections that help differentiate the brand. In Europe they are known under Carphone Warehouse‚ Canada they run as Future Shops and in China they operate under Jiangsu Five Star. Nevertheless‚ the structure is the same and all reporting goes up a chain of command‚ and policies and procedures follow it. 2. Cooperate structure is comparable to a network structure in terms of operating‚ and it is perfect since
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Capital Structure Stewart C. Myers The Journal of Economic Perspectives‚ Vol. 15‚ No. 2. (Spring‚ 2001)‚ pp. 81-102. Stable URL: http://links.jstor.org/sici?sici=0895-3309%28200121%2915%3A2%3C81%3ACS%3E2.0.CO%3B2-D The Journal of Economic Perspectives is currently published by American Economic Association. Your use of the JSTOR archive indicates your acceptance of JSTOR ’s Terms and Conditions of Use‚ available at http://www.jstor.org/about/terms.html. JSTOR ’s Terms and Conditions of Use
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Capital Structure Policy In the normal course of business‚ Columbia Sportswear’s financial position and results operations are subject to a variety of market risks. Those market risks include interest movements on borrowing and investment activities. As well as the volatility of currency exchange rate movement. The business is also affected by the general seasonal trends due to the nature of outdoor industry. In 2011‚ approximately 65% of the net sale and all of their profitability were realized
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