...Write-up Anonymous I. Overview J.H. Stone & Sons, a cardboard container and paper products manufacturer was founded by Joseph Stone in 1926 and after World War II reincorporated as Stone Container Corporation. Early on in its conception Stone was able to grow significantly by way of acquisition. The company had a policy of paying for its acquisitions either entirely in cash or borrowing funds with early repayment. Continuing to grow, the company became publicly-owned when it issued its first 250,000 shares of stock in 1947. After its first IPO, Stone was able to widen its reach demographically. The company began acquiring even more to better diversify itself in the paper industry. By 1987 Stone had quintupled its production capacity but had borrowed heavily to do so. Stone Forest Industries, a subsidiary of Stone Container, was created to relieve some of this debt and Stone Container was able to diminish the rest. In 1989, Stone was back at it when it acquired Consolidated-Bathurst Inc in conjunction with its $3.3 billion of debt. Even with its high standing in the industry, in 1993 Stone Containers future was a shaking one; one that came down to how it would avoid defaulting on its $4.1 billion of debt. II. Condition of the Industry Summary of the Paper & Forest Products industry: * Industry Niches and relevant competitive leaders: * Paper and Wood- Georgia Pacific * Sanitary Tissue Products- Scott * Softwood...
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...The Savers–Spenders Theory of Fiscal Policy By N. GREGORY MANKIW* The literature on the macroeconomic effects of fiscal policy and, in particular, of government debt is founded on two canonical models. The purpose of this paper is to suggest that both models are deficient and to propose a new model to take their place. The first canonical model is the Barro-Ramsey model of infinitely-lived families (Robert Barro, 1974). According to this model, the government’s debt policy redistributes the tax burden among generations, but families, who want to smooth their consumption over time, reverse the effects of this redistribution through their bequests. Government debt is completely neutral—a proposition called Ricardian equivalence. The second canonical model of government debt is the Diamond-Samuelson model of overlapping generations (Peter Diamond, 1965). In this model, people smooth consumption over their own lifetimes, but there is no bequest motive. When the government issues debt, it enriches some generations at the expense of others, crowds out capital, and reduces steadystate living standards. In this paper, I first discuss the facts that lead me to reject these canonical models. I then propose an alternative model and develop briefly its implications for fiscal policy. consumption over time. There is much reason to be skeptical about this assumption. A large empirical literature, starting with Robert Hall’s (1978) seminal random-walk theorem, has addressed...
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...Instructor James Turner September 7, 2015 Introduction This paper will show an overview of the American economic system today from an etic (outsider’s) point of view as well as examine how the Japanese culture treats death from an introspective view to show readers how areas where they may already have an opinion on can be seen from other perspectives. In Part I, readers will be shown from an etic perspective how Americans have, over time, developed an addiction to indebtedness and live in abundance on credit, not caring of growing deficits and interest burdens. In his 2013 book, “Cultural Anthropology,” Crapo describes an etic analysis as “an outsider’s or observer’s allegedly “objective” account.” In Part II, the Japanese culture surrounding death will be described as how an insider would understand it. Crap described an emic analysis as “an insider’s or native’s meaningful account.” (Ch. 1.1). For various cultures around the world to truly understand and empathize with one another, it is important to be able to see things from each other’s perspective. Being able to understand an issue in America as an outsider would see it, and likewise to look at something that might seem strange to us as an insider would will help us grow beyond our preconceived notions and ignorance. Part I This section of the paper will detail an etic analysis of American economics, specifically revolving around debt. Americans do not see debt as an issue that threatens their existence but instead as a...
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...Debt Versus Equity Financing ACC400/University of Phoenix June 13, 2011 Debt Versus Equity Financing In the accounting industry financing is an important concept. Many companies would not be operable without acquiring some for of financing options. Although there are many types of financing, the two that will be discussed in this paper are debt financing and equity financing. Also this paper will give two examples of each type of financing and discuss which option will be the best choice for the company that will utilize them. Debt Financing Many businesses use debt financing which is money that a business borrows to run the company. The interest rate amount at the beginning of financing the loan is the most important fact to consider, however this is a factor that some companies fail to investigate or research. There are two categories of debt financing; short term and long term. Operating loans are short term debt financing because the repayment that is scheduled if for a period of less than one year. An example of short term debt financing is a line of credit. Long term debt financing are for loans that are for a period of more than one year or the life of the asset. Some examples of assets that a business would purchase with long term financing are machinery, buildings and property. (Ward. 2009) Equity Financing Whereas debt financing is used for operation purposes raising capital by selling stock to various investors is the objective of equity financing...
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...Final Assignment Debt in America is extremely common; many people are losing everything they have because of financial trouble. In reading paragraphs three and five, paragraph five was most effective in portraying the writer’s message. The writer gave explanations and examples that created sentence variety and rhythm. By doing this the writer has a flowing piece of writing that makes the reader want to read more. In paragraph five the writer explains in detail about how hard it is to avoid and manage debt. The writer gives superior examples about paying bills, going to the grocery store, and unexpected bills like car tags. He or she also included, that people are told to use cash instead of credit cards to stay out of debt. Is it possible that the use of credit cards can enable people to get ahead with their monthly bills and unexpected visits to the doctor? There can be many stressors that may come up in one’s daily life that cannot be predicted or controlled. What are the results of paying the additional monthly and unexpected bills, if people are expected not to use credit cards and there is no more money left in the budget? Being able to avoiding and managing debt is extremely difficult, particularly when people do not know how to manage the unexpected bills that may come up throughout the month. Submitting my paper to WritePoint was extremely beneficial to my writing experience. After submitting my paper four times I finally came up with a piece that I felt was suitable...
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...1. One short term goal that I have is to draw up business plan for selling my art. One of the first thing I need to do to achieve this goal is to find an investor 2. One long term goal I have is to go to collage 3. Three long term financial goals I have are to be able to pay for collage,buy a house and get my owner company. Some steps I could take to achieve the goal of paying for collage is to choose an in state collage to go and get as many scholarships. I can cover the costs of some other things To buy a home i could ask for loans from the bank and slowly pay of the debt over time, and same thing for open my company 4. An example of financial in food from a fast food restaurant. An example of debt is collage loans 5. An example of earned income that I received is when I worked for the camp over summer and the form of income was wages 6. An example of unearned income is when a friend of mine bought me a $15 gift card for App Store 7 8i didn't do these because I can't open the file 9 10. The amount you spend on food you buy. can change an electric bill for a house is apartment an electric bill a slightly different amount each time, depending on how much electricity you used 11. Too non-discretionary expenses that I think I might have to pay are electric bill and groceries. There are two things I find most important when functioning daily basis 1. One short term goal that I have is to draw up business plan for selling my art. One of the first thing...
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...Proposal for Research On Capital Structure Determinants of the Pharmaceutical Companies in Bangladesh: A study in Incepta pharmaceutical Company Limited. Mirpur Cantonment, Dhaka-1216 Proposal for Research On Capital Structure Determinants of the Pharmaceutical Companies in Bangladesh: A study in Incepta pharmaceutical Company Limited. Prepared for Md. Sawkat Ali Lieutenant Colonel Internship Supervisor Faculty of Business Studies Prepared by |Ronald Halder | |ID – M 0910013 | |M.B.A 10th batch | Mirpur Cantonment, Dhaka-1216 September 19, 2010 December 19, 2010 Md. Sawkat Ali Lieutenant Colonel Internship Supervisor Faculty of Business Studies Bangladesh University of Professionals Mirpur Cantonment, Dhaka-1216. Dear Sir: Subject: Submission of Proposal for research on “Capital Structure Determinants of the Pharmaceutical Companies in Bangladesh: A study in Incepta pharmaceutical Company Limited”. Here I developed a proposal on “Capital Structure Determinants of the Pharmaceutical Companies in Bangladesh: A study in Incepta pharmaceutical Company Limited”. The proposal will focus on the steps of research through several variables. The main findings of the research will be to find out the determinants of capital structure and find the most vital one through statistical analysis and interpretation. I highly appreciate you for creating such opportunity...
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...“No one is useless in this world who lightens the burdens of another”, is a quote from one of the greatest authors of the 19th century, Charles Dickens. He was a famous novelist whose unique writing style is greatly praised by readers and still praised to this day. But how did Dickens come up with such a unique writing style? Simply, from his life events. Dickens’s early years of traumatizing debt and to his rise to fame for his weekly journals helped influence his writing style which contribute to his legacy as one of the greatest English novelist. Charles Dickens’s childhood was greatly spent outdoors. His family constantly moved around England, but the most influential location was London. In London, Dickens saw what city life was like...
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...Essays, Term Papers & Book Notes • Essays • Resource Center I'm Researching... • danielynn31 d… • • • ◦ Back danielynn31 Saved Recents Uploads My Answers ◦ Back ◦ Ask a Question ◦ My Questions ◦ My Answers ◦ Preferences • Account ◦ Back ◦ Account Settings ◦ Profile ◦ Sign Out • • • • • I'm Researching... Products • • • • • Home Research Drive Answers Texty • • • • • Company Legal Site Map Contact Advertise About • • • ©2016 StudyMode.com 1. Home > 2. Debt > 3. Student Loan Crisis... < Back to Debt Student Loan Crisis Research Paper Debt, Education finance, Higher education • • • • By sympathys Jun 11, 2013 1348 Words 220 Views PAGE 1 OF 5 �PAGE � How to Make College More Affordable Many of the protesters occupying Wall Street and other places say they are upset about the rising price of going to college. There is little dispute today that the number of students who have debt has increased, and that the amount of money they have borrowed has gone up (Billitteri). Many students incur large amounts of debt that will never pay dividends in higher wages or greater job satisfaction, and they graduate into a world with weak employment prospects. It's a betrayal of the American social contract that says if you work hard and invest in yourself through education, you'll be able to build a better life. The current system is badly in need of an overhaul, and this paper will present...
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...Costs associated with the issuance of debt Ryan Milliron ACC 311 Every established company will require additional capital at some point. They may choose to sell equity, obtain loans, or sell corporate bonds. When they sell bonds they incur an obligation to repay a certain amount, whether with interest or without, as well as administrative costs with the actual sale. The costs associated with either method of issuing bonds are recorded separately and amortized over the contractual life of the debt. For GAAP compliance these costs are debited to an asset account, called the debt issue costs account. IFRS on the other hand, include the costs with issuing the debt by decreasing the cash account, and decreasing the bonds payable by the costs incurred, effectively reducing the amount borrowed (IAS 39). It can be argued that IFRS in principle provides a greater level of understandability by maintaining a level of simplicity, rather than using additional asset accounts for the debt issue costs. Most companies typically do not sell their bonds to the public directly. Rather, they sell the entire issue to institutions such as investment banks who in turn sell the bonds to the public. The investment banks charge an underwriting fee to the company which may take into account the cost the investment bank pays the company for the bonds, and the re-sale proceeds the bank makes on the sale of the company’s bonds. A company may also choose to sell its debt to either a pension fund or an insurance...
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...Debt Vs. Equity Financing Paper Scarlett Halifax Accounting 400 March 25, 2013 Mrs. Marissa Portugal The last five weeks, we have learned many different principles in accounting. One of the most important principles we have learned in that of the different types of financing that are available to corporations. This paper will look at leasing versus purchasing and Debt versus equity financing. To understand and make the right decisions in financing, it is wise to look at your company’s internal statements and needs. Leasing is defined as an effective way for you to manage the cost of replacing business equipment and technology while maintaining your cash flow. Leasing is a good option is you need to do something immediate, but do not have immediate cash to outright purchase. There are also several benefits to leasing such as tax benefit and flexible interest rates. However, purchasing may be a better option for your company if you plan on keeping the equipment for the duration of its lifecycle. What is Debt Financing Debt Financing is defined as financing which is money that a business borrows to run the company. One of the most important things to consider is the interest rate amount at the beginning of financing the loan, but most to their determent this is a factor that a lot of companies seem to fail to investigate or research. A couple of debt financing examples are; short term and long term. A company’s operating loans...
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...are obese were $1,429 higher than those of normal weight. If Americans do not change their poor eating habits by 2030 forty-two percent of American adults will be obese which could put our economy further into debt. According to ABC News This article states that by the year 2030 over fifty percent of Americans will be obese. According to the model published in The Lancet last year estimates that if adult obesity rates continue at its current rate all 50 states rates could rise above 44 percent. Thirty-nine states could have rates over 50 percent and 13 states obesity...
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...acknowledge from the bottom of my heart those who were solicitous and benevolent enough to guide me throughout the period. First and foremost, I am deeply grateful to my college and my research project mentor Prof. Kedar Subramanian whose profound encouragement, cooperation, guidance and keen supervision at every stage of my research paper inspired me in pursuing and completing it successfully and within schedule. I also heartily thank the Head of the Department Prof. RC Agrawal and the Respected Dean for the continuous help and encouragement and the friendly atmosphere of education provided by them. Kritika Goel ABSTRACT The paper is divided into two major segments- Introduction and Review of Literature. Former, gives a foundation of capital structure decisions with its purpose, significance and methodology. Later, provide the development of the present research by examining the earlier literature or secondary data on the same. Capital Structure is a basically a structure or mixture of different types of funding employed by an organization to get the necessary resources for its performance, growth and efficiency. This paper is enriched with the thorough study of capital structure choices and analyses the decisions that a firm(s) makes in its initial year of operation or in the middle if it desire for expansion, to acquire the data mine by getting the sink of future results of their firm. The...
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...Introduction Dixon Corporation, a U.S.-based chemical company, is mulling on buying a plant from American Chemical Corp. American Chemical’s Collinsville plant makes sodium chlorate for the paper and pulp industry. Dixon will have to pay $12 million as purchase price for the plant. It may also pay $2.25 million to complete the laminate technology developed by the plant’s research and development staff, which is expected to improve the plant’s efficiency. Dixon already has transacted business with some of American Chemical’s major customers. Dixon, however, believes that the acquisition will enable it to widen product lines and penetrate the paper and pulp industry. Analysis To determine the economic feasibility of the acquisition, we can compute for the NPV of the acquisition, with or without the new technology. The NPV will show whether the Collinsville purchase will increase shareholder’s wealth or lead the company to insolvency. Under the net present value method, the weighted average cost of capital is used as the discount rate to calculate the present value of future cash inflows. Hence, for the case study, we will compute for the WACC, prepare projected cash flows then compute the NPV. Solution WACC The all-equity beta (β) of Dixon is 1.06. We assume that we could have a beta of 1.9 for the production of sodium chlorate, basing from the betas of other chemical firms. We could re-lever Dixon’s beta by using its 35% target capital...
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...– covering the syllabus without excessive detail and containing a bank of practice questions for plenty of reinforcement of key topics • A key study guide – guiding you through the study text and helping you revise • An online question bank for additional reinforcement of knowledge • An exam kit – essential for exam preparation and packed with examstandard practice questions • 2 tutor-marked mock exams to be sat during your studies • Key notes - highlighting the key topics in an easy-to-use format Total price: £160.95 Visit us at www.emilewoolfpublishing.com distancelearning@emilewoolfpublishing.com tel: +44(0) 1483 225746 ACCA ACCA Paper F3 (INT) Financial Accounting (International) Welcome to Emile Woolf‘s study text for Paper F3 Financial Accounting (International) which is: Written by tutors Comprehensive but concise In simple English Used around the world by Emile Woolf...
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