...Big 3, health and well being of a company Income statement Balance sheet Cash flow Generally Accepted Accounting Principles GAAP Securities and Exchange Commission SEC Financial Accounting Standards Board FASC Issue Statements of Financial Accounting Standards SFASs 10-K, annually filed with SEC Quality of Financial Reporting Many opportunities for management to affect quality Timing of revenue and expense recognition Discretionary items Balance Sheet Summaries what firm owns and what firm owes to outsiders and to internal owners Shows financial condition of a company on a particular date Also called the statement of condition or the statement of financial position Snapshot in time of assets=liabilities + equity Assets are the engines of a business Operating cycle Time required to purchase or manufacture inventory, sell the product and collect the cash Working capital Also called net working capital Current assets less current liabilities Current assets Cash and cash equivalents Cash awaiting deposit Cash in a bank account Short term investments that can be converted Marketable securities Held to maturity Trading securities Securities available for sale Accounts receivable Customer balances outstanding on credit sales Net realizable value- actual amount of accounts less an allowance for doubtful accounts Allowance for doubtful accounts Affects balance sheet valuation Important in assessing...
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...Lockheed Martin – The Cost of Equity Tyrone Harris TUI University Introduction I will discuss the cost of equity of Lock Heed Martin and its comparison with other companies within the industry. Discussion Capital Asset Pricing Model (CAPM) The assumptions that have been taken to calculate the cost of equity of the Lockheed Martin is: The Capital Asset Pricing Model is selected to compute the cost of capital. The risk free rate is assumed as the yield on the thirty years US treasury bonds. The S&P 500 is used as a proxy for the expected return for the market. Using the CAPM formulae: [pic] E (Ri) = Rf + βi (E(Rm) – Rf) Where, E (ri) is the expected rate of return of capital on the asset i. βim is the Beta (amount of risk with respect to the Market Portfolio) E (rm - rf) is the excess return of the market portfolio. (rm) Performance of the market. (rf) Return on risk free asset. RF = 3% (30 Year U.S. Treasury Bond Yield Forecast, 2012). RM =5.93 % (S&P 500, 2012). Market Risk Premium: [RM - RF] = 2.93 % Beta of Lockheed: 0.62 = 3+ (2.93)*0.62 = 4.8166 % Ans Next, I calculated the Weighted Average Cost of Capital (WACC) of the Lockheed Martin. The Cost of Debt of the firm is approximately around 7 % and the Cost of Equity as calculated above is 4.8166%. The proportion of the debt/capital ratio of the firm is 60...
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...MGT-401 | Fundamentals of Management | | 6 | ECO-401 | Economics for Managers | | 7 | FIN-401 | Fundamentals of Finance/Introduction to Finance | | 8 | MKT-401 | Principles of Marketing | | 9 | HRM -501 | Human Resource Management | | 10 | BUS-403 | Legal Environment in Business | | 11 | MGT-402 | Organizational Behavior and Leadership Development | | 12 | MAT-402 | Quantitative Methods and Techniques in Business(A) | | 13 | MAT-402 | Quantitative Methods and Techniques in Business(B) | | 14 | BUS-404 | Research Methods in Business (Section-A) | | 15 | BUS-404 | Research Methods in Business (Section-B) | | | | Functional Courses | | | | Major in Finance | | 16 | FIN-501 | Financial Management | | | | | | 17 | FIN-502 | Financial Institutions and Market | | | | | | | | Major in Marketing | | 18 | MKT-501 | Marketing Management | | 19 | MKT-502 | Consumer Behavior | | | | Major in Human Resource Management | | 20 | HRM-502 | Comparative Human Resource Management | | | | Major in Accounting | | | | | | | | Capstone Courses (Compulsory for all) | | 21 | MGT-501 | Strategic Management (A) | | 22 | MGT-501 | Strategic Management (B) | | Major Courses | | Major in Finance | | 23 | FIN-503 | Corporate Finance | | 24 | FIN-505 | Working Capital Management | | 25 | FIN-506 | International Financial...
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...Comparative Summary Comparing the similarities and differences between the for-profit, not-for-profit, and government financial environments can be substantial because for-profit, not-for-profit, and governmental entities use different financial structure, policies, and unique management practices. According to Gapenski (2008), hospitals are classified by ownership as private not-for-profit, investor owned, and governmental. The statistical data show approximately 60 percents of all hospitals are private not-for-profit hospitals, approximately 25 percents consisted of governmental hospitals, and approximately 15 percents are investor owned hospitals. Main difference between not-for-profit and for-profit hospitals are not-for-profit hospitals received numerous tax benefits such as tax exemption from federal, state, and local government income taxes because hospital serves as a charitable purpose and provide benefits to the community in general. The hospital sector in the United States includes three different types of ownership forms. Not-for-profit hospitals are the most common type but for-profit and government hospitals also play substantial roles. Arnold Palmer Hospital for Children is not-for-profit hospital dedicated to the providing a shelter of hope and healing to the children. According to Orlando Health (2011), “Arnold Palmer Hospital is a 158-bed pediatric hospital located in Orlando, Florida.” Orlando Health is dedicated to offering community services by providing...
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...|Sandeep Kumar | | |[pic] | | |sandeep_sidhwani@yahoo.com | | | | | | | | |[pic] | | |+92 333 717 3723 (preferred) | | | | | | | | |[pic] ...
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...Developing a Financial Model (GROUP ASSIGNMENT) Finances in mission-driven organizations are critical because they serve the mission, which means having a financial strategy is integral to organizational survival (Greco, 2011). The financial model below demonstrates how Housing Helpers will support its home improvement work for low socioeconomic status households. Budge Responsibility A key component of financial sustainability is the commitment of board and staff to financial management that includes timely review of financial reports and advance planning. One way that board and staff plan for income and expenses in the future is by creating a budget. Approval of the annual budget is one of the fundamental building blocks of sound financial...
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...cause Repsol’s cost of capital to increase as financial risk increase due to political and economic in an emerging region, therefore resulting a higher WACC. * Diversification of business activities would affect the perceived operating risk and choice of payment and transaction financing would also affect the perceived financial risk of the firm. * YPF WACC = 12.55% * Repsol WACC = 8.14% * Repsol-YPF (all-debt) WACC = 10.6% * Repsol-YPF (all-equity) WACC = 11.07% 2. Is Repsol’s stock fairly priced in the market or is it overvalued or undervalued? DCF | 1 | 2 | 3 | 4 | 5 | Discount factor (WACC @ 8.1%) | 0.9251 | 0.8558 | 0.7916 | 0.7323 | 0.6774 | Free Cash Flow | 169 | 501 | 1,174 | 1,573 | 27,478 | PV of discounted CF | 156.34 | 428.73 |...
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...Principles of Managerial Finance The Prentice Hall Series in Finance Adelman/Marks Entrepreneurial Finance Andersen Global Derivatives: A Strategic Risk Management Perspective Bekaert/Hodrick International Financial Management Berk/DeMarzo Corporate Finance* Berk/DeMarzo Corporate Finance: The Core* Berk/DeMarzo/Harford Fundamentals of Corporate Finance* Boakes Reading and Understanding the Financial Times Brooks Financial Management: Core Concepts* Copeland/Weston/Shastri Financial Theory and Corporate Policy Dorfman/Cather Introduction to Risk Management and Insurance Eiteman/Stonehill/Moffett Multinational Business Finance Fabozzi Bond Markets: Analysis and Strategies Fabozzi/Modigliani Capital Markets: Institutions and Instruments Fabozzi/Modigliani/Jones/Ferri Foundations of Financial Markets and Institutions Finkler Financial Management for Public, Health, and Not-for-Profit Organizations Frasca Personal Finance Gitman/Joehnk/Smart Fundamentals of Investing* Gitman/Zutter Principles of Managerial Finance* * denotes Gitman/Zutter Principles of Managerial Finance— Brief Edition* Goldsmith Consumer Economics: Issues and Behaviors Haugen The Inefficient Stock Market: What Pays Off and Why Haugen The New Finance: Overreaction, Complexity, and Uniqueness Holden Excel Modeling and Estimation in Corporate Finance Holden Excel Modeling and Estimation in Investments Hughes/MacDonald International Banking:...
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...Principles of Managerial Finance The Prentice Hall Series in Finance Adelman/Marks Entrepreneurial Finance Andersen Global Derivatives: A Strategic Risk Management Perspective Bekaert/Hodrick International Financial Management Berk/DeMarzo Corporate Finance* Berk/DeMarzo Corporate Finance: The Core* Berk/DeMarzo/Harford Fundamentals of Corporate Finance* Boakes Reading and Understanding the Financial Times Brooks Financial Management: Core Concepts* Copeland/Weston/Shastri Financial Theory and Corporate Policy Dorfman/Cather Introduction to Risk Management and Insurance Eiteman/Stonehill/Moffett Multinational Business Finance Fabozzi Bond Markets: Analysis and Strategies Fabozzi/Modigliani Capital Markets: Institutions and Instruments Fabozzi/Modigliani/Jones/Ferri Foundations of Financial Markets and Institutions Finkler Financial Management for Public, Health, and Not-for-Profit Organizations Frasca Personal Finance Gitman/Joehnk/Smart Fundamentals of Investing* Gitman/Zutter Principles of Managerial Finance* * denotes Gitman/Zutter Principles of Managerial Finance— Brief Edition* Goldsmith Consumer Economics: Issues and Behaviors Haugen The Inefficient Stock Market: What Pays Off and Why Haugen The New Finance: Overreaction, Complexity, and Uniqueness Holden Excel Modeling and Estimation in Corporate Finance Holden Excel Modeling and Estimation in Investments Hughes/MacDonald International Banking:...
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...Equity Investments: Valuation, and Managing Investment Portfolios: A Dynamic Process. Ackerman, Carl, Richard McEnally, and David Ravenscraft. 1999. “The Performance of Hedge Funds: Risk, Return, and Incentives.” Journal of Finance. Vol. 54, No. 3: 833–874. ACLI Survey. 2003. The American Council of Life Insurers. Agarwal, Vikas and Narayan Naik. 2000. “Performance Evaluation of Hedge Funds with OptionBased and Buy-and-Hold Strategies.” Working Paper, London Business School. Ali, Paul Usman and Martin Gold. 2002. “An Appraisal of Socially Responsible Investments and Implications for Trustees and Other Investment Fiduciaries.” Working Paper, University of Melbourne. Almgren, Robert and Neil Chriss. 2000/2001. “Optimal Execution of Portfolio Transactions.” Journal of Risk. Vol. 3: 5–39. Altman, Edward I. 1968. “Financial Ratios, Discriminant Analysis and the Prediction of Corporate Bankruptcy.” Journal of Finance. Vol. 23: 589–699. Altman, Edward I. and Vellore M. Kishore. 1996. “Almost Everything You Wanted to Know about Recoveries on Defaulted Bonds.” Financial Analysts Journal. Vol. 52, No. 6: 57−63. Altman, Edward I., R. Haldeman, and P. Narayanan. 1977. “Zeta Analysis: A New Model to Identify Bankruptcy Risk of Corporations.” Journal of Banking and Finance. Vol. 1: 29−54. Ambachtsheer, Keith, Ronald Capelle, and Tom Scheibelhut. 1998. “Improving Pension Fund Performance.” Financial Analysts Journal. Vol. 54, No. 6: 15–21. Ambachtsheer, Keith. 1986. Pension Funds and the Bottom...
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...Journal of Banking & Finance 22 (1998) 613±673 The economics of small business ®nance: The roles of private equity and debt markets in the ®nancial growth cycle Allen N. Berger a a,b,* , Gregory F. Udell c Board of Governors of the Federal Reserve System, Washington, DC 20551, USA b Wharton Financial Institutions Center, Philadelphia, PA 19104, USA c Kelley School of Business, Indiana University, Bloomington, IN 47405, USA Abstract This article examines the economics of ®nancing small business in private equity and debt markets. Firms are viewed through a ®nancial growth cycle paradigm in which different capital structures are optimal at dierent points in the cycle. We show the sources of small business ®nance, and how capital structure varies with ®rm size and age. The interconnectedness of small ®rm ®nance is discussed along with the impact of the macroeconomic environment. We also analyze a number of research and policy issues, review the literature, and suggest topics for future research. Ó 1998 Published by Elsevier Science B.V. All rights reserved. JEL classi®cation: G21; G28; G34; E58; L89 Keywords: Venture capital; Small business lending; Bank; Mergers 1. Introduction The role of the entrepreneurial enterprise as an engine of economic growth has garnered considerable public attention in the 1990s. Much of this focus * Corresponding author. Tel.: 1 202 452 2903; fax: 1 202 452 5295; e-mail: aberger@frb.gov. 0378-4266/98/$19.00 Ó 1998 Published...
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...Project Financing Asset-Based Financial Engineering Second Edition JOHN D. FINNERTY, Ph.D. John Wiley & Sons, Inc. Project Financing Founded in 1807, John Wiley & Sons is the oldest independent publishing company in the United States. With offices in North America, Europe, Australia, and Asia, Wiley is globally committed to developing and marketing print and electronic products and services for our customers’ professional and personal knowledge and understanding. The Wiley Finance series contains books written specifically for finance and investment professionals as well as sophisticated individual investors and their financial advisors. Book topics range from portfolio management to e-commerce, risk management, financial engineering, valuation, and financial instrument analysis, as well as much more. For a list of available titles, visit our Web site at www.WileyFinance.com. Project Financing Asset-Based Financial Engineering Second Edition JOHN D. FINNERTY, Ph.D. John Wiley & Sons, Inc. Copyright C 2007 by John D. Finnerty. All rights reserved Published by John Wiley & Sons, Inc., Hoboken, New Jersey. Published simultaneously in Canada. Wiley Bicentennial Logo: Richard J. Pacifico No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States...
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...Toggle SGML Header (+) Section 1: 10-K (10-K) UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended February 1, 2014. OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-303 THE KROGER CO. (Exact name of registrant as specified in its charter) Ohio (State or Other Jurisdiction of Incorporation or Organization) 1014 Vine Street, Cincinnati, OH (Address of Principal Executive Offices) Registrant’s telephone number, including area code (513) 762-4000 Securities registered pursuant to Section 12(b) of the Act: Title of each class Name of each exchange on which registered 31-0345740 (I.R.S. Employer Identification No.) 45202 (Zip Code) Common Stock $1 par value NONE (Title of class) New York Stock Exchange Securities registered pursuant to Section 12(g) of the Act: Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes No Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. No Yes Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding...
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...Licensed to: iChapters User Eugene F. Brigham UNIVERSITY OF FLORIDA Joel F. Houston UNIVERSITY OF FLORIDA Copyright 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. Eugene F. Brigham UNIVERSITY OF FLORIDA Joel F. Houston UNIVERSITY OF FLORIDA Copyright 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. Licensed to: iChapters User This is an electronic version of the print textbook. Due to electronic rights restrictions, some third party content may be suppressed. Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. The publisher reserves the right to remove content from this title at any time...
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...Comparative Summary University of Phoenix HCS/577 Charlotte Igo July 30, 2012 The Health care financial environment is the most common for- profit, not-for-profit, and also the government funding. In this paper, it will be identified that one entity of these health care financial environments. Also it will describe the financial structure of the financial environment. Along with identifying the policies unique to each of the financial environment, and also to identify the financial management practices prevalent in the financial environment. Then it will be explained why the effective financial management is more difficult in health care than in other industries. First we will talk about is the Health Management Associates, Inc. that was founded in 1977. The Health Management Associates was founded to own, also leased and then managed the hospitals throughout the United States. As of the HMA, they operate about fifty nine hospitals in fifteen states with approximately eighty eight hundred licensed beds. Company employs around thirty two thousands associates and hosts a total medical staff of approximately eight thousands physicians. HMA is a for profit organization, with that the profit organization is with the three key features of investor-owned corporations. The owners aka known as the stockholders of the business are well...
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