CASH HOLDINGS‚ WORKING CAPITAL AND FIRM VALUE: EVIDENCE FROM FRANCE Ruta AUTUKAITE* – Eric MOLAY** Abstract: Although companies deal with day-to-day short term financial decisions‚ in corporate finance the emphasis is being put on long term financial issues when talking about company’s value. In this paper a sample of French listed companies was chosen to assess the importance of short term financial decisions to company’s value by testing the following hypotheses: an extra euro invested in cash
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QUESTIONS - Offer 1. What is an offer? 2. What is an invitation to treat? 3. List the factors that the court will take into account in distinguishing between an offer and an invitation to treat? 4. Name a case which is authority for the rule that a request for tenders is an invitation to treat. 5. What is the effect of the distinction between offer and invitation to treat? 6. Is possible to make an offer to the whole world? Self-test Questions – uNILATERAL OFFERS
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------------------------------------------------- Gibrat’s law Gibrat’s law‚ sometimes called Gibrat’s rule of proportionate growth is a rule defined by Robert Gibrat (1904–1980) stating that the size of a firm and its growth rate are independent.[1] The law of proportionate growth gives rise to a distribution that is log-normal.[2] Gibrat’s law is also applied to cities size and growth rate‚ where proportionate growth process may give rise to a distribution of city sizes that is log-normal‚ as
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Introduction Ryan’s and Daughter Accounting Firm‚ originally founded in 2014‚ currently employ 1‚500 employees and earns an annual revenue of 25 million dollars a year. Currently‚ the company seeks to increase the company’s workforce by 20%‚ 300 new employees‚ with an expected annual income of 50 million dollars in annual revenue. This growth potential growth expectancy vaults Ryan’s and Daughter Accounting Firm from a small business to a medium size company‚ in the aspects of employees and annual
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company will focus on within this firm will meet‚ and exceed the client’s needs. These include a position in communication position that will deal with the clients while outlining the meetings and notes. This position will assist the consulting firm with planning. Another position critical within this firm consist of an editor position in charge of the oversight of the collecting data in the meetings‚ and editing including processing clients data information. This firm will include a research department
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discrimination enables firms to make more profit‚ firms‚ but not consumers‚ benefit from price discrimination Price discrimination is where a firm changes different consumers different prices for the same service. Consumer Surplus is the difference between what the consumer is willing to pay and the price they actually have to pay. In all three degrees of price discrimination firms are able to make more profit and eliminate any excess capacity they may have. Firms are able to do this by
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Two large state-owned enterprises are swooping on the Hong Kong market with their long-awaited IPOs almost simultaneously this week‚ and the prospect of two large offerings is likely to cast a pall over the city’s stock market. The decisions by Sinopec Engineering and China Galaxy Securities to launch their roadshows separately came after the two large SOEs‚ tightly controlled by the Chinese government‚ both managed to secure strong support from some key cornerstone investors. Sinopec Engineering
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“Primark Fires child Worker Firms” UK clothing firm Primark has fired three Indian suppliers because they used child labour to finish goods. The suppliers sub-contracted smaller firms‚ which were using child labour to carry out embroidery and sequin work. The BBC’s Panorama programme‚ which carried out a six-month investigation‚ alerted Primark to the problems. Consumers are increasingly demanding that companies produce goods in an ethical manner‚ turning the spotlight on worker wages and
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You are presently working as a paralegal in a large law firm in San Diego‚ California. Your supervising attorney‚ Janet Jones‚ has called you into her office. Janet just finished an interesting meeting with some potential clients. Rob and Bunny Sherman have a 15-year-old son named Rob Jr. Rob Sr. and Bunny want to bring suit against the Church of the Divine Light. It is similar to the Church of Scientology‚ but not actually related to any one‚ organized church. The parents allege that Rob Jr. was
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CHAPTER 18 VALUATION AND CAPITAL BUDGETING FOR THE LEVERED FIRM Answers to Concepts Review and Critical Thinking Questions 1. APV is equal to the NPV of the project (i.e. the value of the project for an unlevered firm) plus the NPV of financing side effects. 2. The WACC is based on a target debt level while the APV is based on the amount of debt. 3. FTE uses levered cash flow and other methods use unlevered cash flow. 4. The WACC method does not explicitly include the interest cash
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