What is the appropriate goal of a firm? Maximization of shareholder wealth is said to be the primary goal of a firm. The financial manager has the responsibility to act in their best interests. Since‚ the common stockholders are the firm’s most important stakeholders to continue operate the business. This goal means that the financial manager can best serve business owners by identifying goods and services that add value to the firm because the market place desires and values what the firm offers
Premium Stock market Stock Management
Pfizer Inc.’S Cost of Capital and Capital structure - Xiaoyue Shi The costs of capital and capital structures for Pfizer Inc. and its two competitors Merck & Co. Inc. and Johnson & Johnson in the pharmaceutical industry are analyzed in this memo. When calculating the cost of common stock for the three companies‚ three different approaches including Capital Asset Pricing Model (CAPM)‚ Discounted Cash Flow (DCF) and the bond yield plus risk premium are applied (Appendix A). For CAPM approach
Premium Stock market Stock Weighted average cost of capital
duration and the frequency of the pathways to user conversions. In this paper‚ we propose an alternative data mining framework for analyzing user-level advertising data. In the aggregation step‚ we compress individual user histories into a graph structure‚ called the adgraph‚ representing local correlations between ad events. For the reporting step‚ we introduce several scoring rules‚ called the adfactors (AF)‚ that can capture global role of ads and ad paths in the adgraph‚ in particular‚ the structural
Premium Data mining Advertising Pay per click
Environmental Dynamism‚ Capital Structure and Performance: A Theoretical Integration and an Empirical Test Author(s): Roy L. Simerly and Mingfang Li Source: Strategic Management Journal‚ Vol. 21‚ No. 1 (Jan.‚ 2000)‚ pp. 31-49 Published by: John Wiley & Sons Stable URL: http://www.jstor.org/stable/3094118 Accessed: 07/12/2009 10:37 Your use of the JSTOR archive indicates your acceptance of JSTOR ’s Terms and Conditions of Use‚ available at http://www.jstor.org/page/info/about/policies/terms.jsp.
Premium Capital structure Finance
000‚00 common stock 5 years warrant attached. What have been MCI sources of funds in the past (1972-1983)? What’s your opinion? Around 1972 MCI issued equity and later on time when the company started going well they issued debentures and convertible debentures. The main raison to do that is because equity cost use to be higher. First of all they issued debentures but they realise that the convertible debentures had lower cost of capital and they started issuing them. Due to the high growth
Premium Bond Finance Corporate finance
from external sources. As capital expenditures outstrip funds from operations‚ undoubtedly the company will need to seek further capital from the financial markets (Exhibit 1). However‚ these external financing needs could vary considerably. For one‚ as the antitrust settlement between AT&T and the U.S. Department of Justice mandates the breakup of AT&T by early 1984‚ both growth opportunities and cost uncertainties simultaneously increase for MCI Communications. MCI could certainly gain by having
Premium Corporate finance Bond Preferred stock
Capital structure decisions: To M&M and beyond Introduction Modigliani and Miller’s proposition one states that by introducing debt financing does not change the value of the firm or the value of the firm’s cash-‐flows but only the way that these cash-‐flows of the firm are split between its debt and
Premium Finance Investment
INTRODUCTION 1.0 CHAPTER OVERVIEW Capital plays an important role in business. Every business enterprise‚ whether big‚ medium or small‚ manufacturing‚ services or industrial‚ needs capital to carry on its operations smoothly and to achieve its targets organization’s objective. Capital Structure means how an organization or company manage their capital or obtain financial resources to manage their business well. Business adopts different types of capital structures in order to meet the internal needs
Premium Corporate finance Finance Capital structure
ch. 16 question 15-1 CHAPTER 15 Capital Structure: Basic Concepts Multiple Choice Questions: I. DEFINITIONS HOMEMADE LEVERAGE a 1. The use of personal borrowing to change the overall amount of financial leverage to which an individual is exposed is called: a. homemade leverage. b. dividend recapture. c. the weighted average cost of capital. d. private debt placement. e. personal offset. Difficulty level: Easy MM PROPOSITION I b 2
Premium Marketing Management Family
Contents :- Introduction on Capital Structure……………………..5 Summary and Evaluation of Articles…………………6 Conclusion………………………………………………………..8 References/Bibliography………………………………….9 Introduction On Capital Structure :- In the field of finance capital structure means a way an organization or firms finances their assets by the way of some mix and match of Equity‚ Debt or Hybrid Securities. The modern thinking on capital structure is based on the Modigliani-Miller theorem given by Franco Modigliani
Premium Finance Corporate finance Debt