2. How credit ratings affect the capital structure of a firm Credit ratings is the assessment of the credit worthiness of a firm based on historyof borrowing and repayment. Credit rating is the credit worthiness of a debtor. The debtors ability to pay back the debt. Companies with high rating (AAA) have a good market reputation and logically would avoid not being in favor of more debt in capital structure to save them from any adverse circumstances. High credit ratings expose a firm to obtain
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loans have spiraled out of control within the last few decades and this is negatively impacting our society. The average of obtaining a degree at a public four-year college is $9‚300 and has been steadily rising by four percent since 1985. This trend is most likely going to continue the way it is and all the while the median family income remains stagnant or even slightly decreasing. This has led the students of today to take out more loans and just keep adding onto the growing student debt bubble
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was after hours. She then dared Hsieh to call up the Zappos headquarters and help her out since they claimed to have such a high quality customer service. Hsieh put the call centre agent on speaker and the first thing he said was: ‘You know we
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Ms. Henderson English 201 April 23‚ 2013 The Shackles of Student Debt? In this article‚ “A Lifetime of Student Debt‚” Robin Wilson interprets the different views on taking out loans for college students. The recent worry has been that taking out student loans are “threatening the financial future of today’s college students” (Wilson 256). However‚ recent studies has shown that one-third of college students will have no debt after their academic experience. College student nowadays are willing
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A. Debt Management Ratios (Leverage Ratios) The extent to which a firm uses debt financing‚ or financial leverage‚ has three important implications: 1. By raising funds through debt‚ stockholders can maintain control of a firm while limiting their investment 2. Creditors look to the equity‚ or owner-supplied funds‚ to provide a margin of safety‚ so the higher the proportion of the total capital that was provided by stockholders‚ the less the risk faced by creditors 3. If the firm earns more
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on your current debt) is 12.1%‚ then your bond rate (the rate on your long-term debt) is: 1. 10.7% (14% lower than the current debt rate) 2. 12.1% (the current debt rate) 3. 13.5% (14% higher than the current debt rate) 4. 6.05% (one-half the current debt rate) 5. 12.0% (one tenth percent less than the current debt rate) 7. At the beginning of the simulation‚ how many many assembly lines are there? 1. One‚ shared by all companies 2. Five line per company 3. As many
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Dear Voters‚ public transportation has been around since 1662‚ originated in Paris. Nearly 45% of Americans have no access to this option at all‚ due to the costs‚ public transportation should have no cost. It reduces congestion in cities and towns. Also reduces your carbon footprint‚ and is cheaper than the owning a car. The U.S. public transportation saves 37 million metric tons of carbon dioxide annually‚ and a household can save an average of $10‚000 annually by taking public transit. Transportation
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that influence employees’ behavior‚ attitudes‚ and performance. “Many companies refer to HRM AS involving people practice” according to Noe R.A. (2013) Effective HRM Practices has been shown to enhance company performance by contributing to employee and customer satisfaction‚ innovation‚ productivity‚ and development of a favorable reputation in the firm’s community. According to Noe‚ R.A. (2013) “Only recently have companies looked at HRM as a means to contribute to profitability‚ quality‚ and
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The national debt is increasing day by day‚ and the federal government is struggling to tackle it. As of now‚ the national debt has comprised to 18 trillion dollars. Americans and economists are concerned about the national debt‚ and the effect it will have in the country and even the world. As President George Washington once stated‚ “To contract new debt is not the way to pay old ones”‚ which is what seems to be happening recently. Debt needs to be addressed as a national issue along with the factors
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Today‚ women represent almost half of the workforce in the labour department. There have been increasingly more opportunities for women to enter the labour market who are equally competitive in some fields as men. Despite the high amount of achievement and participation that women have made in the labor force in recent decades‚ they are still struggling with the access to the upper level positions in the organization. This barrier to vertical movement for women in the workforce is commonly known
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