...The Capital Structure of Nicci’s Pizza Palace September 13, 2011 The Capital Structure of Nicci’s Pizza Palace A company is funded by debt, equity, or retained earnings. The mixture of debt and equity is the company’s capital structure. There are four factors that influence capital structure; business risk, tax position, financial flexibility, managers, growth rate, and market conditions. Management’s decisions concerning capital structure should be geared toward maximizing the intrinsic value of the company. This value is the present value of its expected future free cash flows (FCF) discounted at its weighted average cost of capital (WACC). Business risk is the basic risk of the company's operations (EBIT), excluding debt. It raises the question how well can a company’s operating income be predicted? There are several unknown variables that can assist in answering this question. The product for example, has a cost associated with its’ creation. Then there is the uncertainty of how much to charge for it, demand, operating leverage, etc. The general rule is: the greater the business risk, the lower the optimal debt ratio. Operating leverage is the use of fixed costs rather than variable costs. It is a measure of whether a company is getting value for its costs. It “can be a very powerful thing. With a cost structure geared toward a high proportion of fixed costs and few variables in the mix, strong sales almost automatically translate into higher profit growth. Companies...
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...Case Study: PizzaPalace’s Capital Structure Made by A. C a. Provide a brief overview of capital structure effects. Be sure to identify the ways in which capital structure can affect the weighted average cost of capital and free cash flows. The capital structure decision change the value of the firm either through the the free cash flow or the cost of capital. V = ∑ ∞ t=1 FCFt (1 + WACC)t With FCF= NOPAT-change in ( NOWC+NFA) WACC= wd (1-T) rd + wers An additional debt has an effect on WACC and FCF: On WACC: -debt increase the cost of stock rs as the stockholders require a higher return due to the risk associated with additional debt -debt reduce the tax paid by the company as the interest is tax deductible -debt increase the risk of bankruptcy so debtholders will require a higher promised return rd ***low taxes Vs high cost of equity,high cost of debt => uncertain effect on WACC On FCF: -the probability of bankruptcy increases and generates direct costs ( legal fees,fire sales..) and indirect costs: lost customer s( NOPAT decreases) , reduction in productivity of employees , and reduction in credit offered by suppliers ( A/P decrease so NOWC increase ) - bankruptcy risk affects agency cost : decrease them bu reducing wastful spending And increase them by causing the manager to be too risk averse: underinvestment...
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...brief business plan that highlights the financial, marketing, and organizational aspects. Now that you have identified several key components of your business, recommend how you would approach the first six months of operations. The name of the company is D-I-Y Pizza Palace. The origination of the name would be a self-explanatory approach to the business. D-I-Y (Do It Yourself) Pizza Palace will be a fun family oriented establishment that would allow its patrons to create their own pizza with numerous fresh veggies and toppings as options. Financial Aspect The startup costs for the business will be financed by personal savings and a close circle of family and friends who will serve as silent investors (no more than 4). These costs will include: building rental, purchasing of equipment, insurance, food, furniture (tables/chairs), supplies, etc. I will have enough funding to cover the first 6 months of rent, this will aid in my focus being more on building the brand and expanding customer bases without fretting over rent expenses. Marketing Aspect The marketing strategy describes the market’s need for the item and the way the business will fulfill it (Kurtz, 2012). The target audience for D-I-Y Pizza Palace is broad, I want to attract families, and therefore the ages can range from children to adults. My ideal location is within 1 mile from the most populated YMCA in the city. Families go the YMCA to participate in various activities and work out, having a place nearby...
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...Pizza is a flatbread generally topped with tomato sauce and cheese and baked in an oven. It is commonly topped with a selection of meats, vegetables and condiments. The term was first recorded in the 10th century, in a Latin manuscript from Gaeta in Central Italy. In 2009, upon Italy's request, Neapolitan pizza was safeguarded in the European Union as a Traditional Speciality Guaranteed dish. The Associazione Verace Pizza Napoletana is a non-profit organization founded in 1984 with headquarters in Naples. It promotes and protects the "true Neapolitan pizza". Pizza is sold fresh, frozen or in portions. Various types of ovens are used to cook them and many varieties exist. Several similar dishes are prepared from ingredients commonly used in pizza preparation, such as calzone and stromboli. It is a popular fast food item. Etymology The origin of the word pizza is uncertain. The term "pizza" first appeared "in a Latin text from the southern Italy town of Gaeta in 997 AD, which states that a tenant of certain property is to give the bishop of Gaeta duodecim pizze every Christmas Day, and another twelve every Easter Sunday". Suggested etymologies include: The Ancient Greek word πικτή, "fermented pastry", which in Latin became "picta", and Late Latin pitta > pizza. Compare Greek pita bread and the Apulia and Calabrian pitta. The Ancient Greek word πίσσα, "pitch", or pḗtea, "bran" . The Italian word pizzicare meaning "to pluck", which refers to pizza being plucked quickly...
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...impulse to learn and build on her knowledge. The novella also states that Queen didn’t like being contradicted, and if she came across any reading that wasn’t in line with her thoughts and actions, she used to lose her patience at it. Her lack of interest in reading can be judged by the incident when Norman, a servant sarcastically remarked about her reading sense by stating that the book ‘My dog Tulip’, must be comprehended by the queen to be about a dog. This can further be reinforced by the anecdotes about Henry James and Jean Ganet. However, over the course of time she developed a strong insight into reading. It all sprung off after the queen felt obliged to borrow books from a City of Westminster Mobile Library outside the Buckingham Palace. She was guided by Norman, a former kitchen boy and an...
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...Central government is in charge at a national level, it is positioned in London where the houses of parliament and the House of Lords have many different types of responsibilities. One of their responsibilities is to protect the whole country at a national level. The good thing about this responsibility is that it will make our country a safer place to live in by creating new laws and policies which will help protect the people either from drink/driving laws or smoking ban where they keep you from harm. The bad thing about this responsibility is only a selected few hundred MPs can make the choice and even through the people in the House of Commons are voted in by us, they may not do what is in our best interest and will vote on their principles and beliefs and they could have a bias opinion. An example would be the House of parliament and when they are in session they discuss lots of different issues and reports and in front of the speaker. Our country signs treaties with other countries so we can make deals with each other which are friendly and to help keep the peace and so we can be allies with each other this is also another responsibility. The good thing about this responsibility is that it will keep peace between our countries and there is no fighting going on and the less likely chance we will go to war where there will be death caused by bombs, gunshot wounds and a great deal of injury. In 1992, the UN sent more than 10,000 British troops over to Yugoslavia to help...
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...then a prison. Now it is a museum. St. Paul's Cathedral is very large and fine. It was completed in 1710. The famous English architect Christopher Wren planned and built St. Paul's Cathedral. If the City is the business part of London, Westminster is the centre of administration. We can see the Houses of Parliament there. It is a beautiful building with two towers and a very big clock called Big Ben. The Houses of Parliament stand in Parliament Square. Westminster Abbey is opposite the Houses of Parliament. Many great Englishmen were buried in Westminster Abbey. To the west of Westminster Abbey you can see Buckingham Pa-lace. It is a royal residence. The ceremony of the chan-ging of the guards which takes place in front of Bucking-ham Palace is of great interest to the tourists. Rich people live in the West End. The best and most expensive clubs, restaurants and theatres, beautiful houses and parks are there. The East End — the district of plants, factories, slums and docks — is for the working people. London is unlike any other city in the world. It has rather wide streets but low houses. It looks very grey because there is so much rain and fog there. Only buses and pillar-boxes are red. This city has never been planned and it has many parts which are different from each other. Перевод текста: London Yesterday I watched a great cartoon "Hakuna Mathata". I liked...
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...The central government of the UK is based in at the Palace of Westminster in London. It contains the major central political institutions of the UK, the House of Commons and the House of Lords. Together with the ruling monarch, these three institutions are known as Parliament. The central government is the layer of government that operates across the whole country. It is usually located in the country's capital city and it has very specific responsibilities that no other level of government is able to do for example; signing treaties with other nations, making new laws and defending the nation. A proposed new law is called a bill. Bills must be agreed by both Houses of Parliament and receive Royal Assent from the Queen before they can become Acts of Parliament which make our law, The good thing about this responsibility is that it will make our country a safer place to live in by creating new laws and policies which will help protect the people either from drink/driving laws or smoking ban where they keep you from harm. The bad thing about this responsibility is only a selected few hundred MPs can make the choice and even through the people in the House of Commons are voted in by us, they may not do what is in our best interest and will vote on their principles and beliefs and they could have a bias opinion. An example would be the House of parliament and when they are in session they discuss lots of different issues and reports and in front of the...
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...Journal #1 In my opinion, I think that Louis XIV would be a better ruler to live under compared to his grandson and Marie Antoinette. The Sun King was successful at his ability establish a stable and powerful hold over his country through absolute monarchy. Meanwhile, Louis XIV failed to do so and lost his head as a result. In addition, Louis XIV knew how to retain and maintain power, especially over the nobles. The very act of establishing Versailles as a seat of government control forced the nobles to come to him and seek his support. He was adept at playing the nobles off against each other, and was practically the archetype of absolute power. Although he certainly made mistakes such as his foreign wars, he kept a tight rein on his nobles. This way, he was not affected by outside sources trying to sway his decisions. Thus, Louis XIV was a much more powerful king that was never at risk of losing his throne and his crown. Therefore, I would prefer to live in a country with absolute monarchy and have a king that was completely in power, rather than Louis XVI with his unstable shaky influence. Louis XIV was a good example of a political leader while Louis XVI tried to avoid politics as much as possible. When Louis XVI said "I am the state," he lived as if he were. While Louis XIV spent excessive amounts of money on his military, he could justify that decision for it was spent in order to fund for his wars. Marie Antoinette and Louis XVI spent large amounts on extravagant...
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...For my reading assignment I read the story, It's All the Same by Bewketu Seyoum. The story is about a man who has a problem with his spending habits. He proposed an Ethiopian Millennium to help beggars in Ethiopia and he ends up thinking of killing himself by drinking poison. Below is my assignment for this week. Dear Diary, So by now you are probably thought that I downed all the poison and that I do not have to worry about my spending habits anymore. Well it did not turn out quite like that. Do as it turned out, I did not drink the poison after all, I let it sit for a couple of days, until 2 days later.I woke up and looked outside of the window but nothing had changed to give me a clue on whether I should drink the poison or not.I sat...
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...Kyrsten Arnold Period 4 11/1/11 Scary Story This was going to be a scary night. First, at dinnertime, my mother, father, and I had the normal Friday night meal, pizza. All three of us had gathered in the family room and ate in silence as we watched my dad’s favorite TV show “Chopped”. After I finished my last delicious bite of pepperoni pizza, I became tired of cooking competitions, so I began to wash my dishes. As I did I took a glance out the window in front of the sink and had to do a double take, because there, slightly behind a tree, only a few yards behind my house was a tall man in a long dark coat and a pitch black hat. I blinked several times and rubbed my eyes. When I looked back, he was gone. Phew, it was just my eyes playing tricks on me. I let out a relived sigh as I finished my dishes and headed up to my room to read my book. Next, at bedtime, just as I was about to pull the sheets over me, I saw him again, but he looked different. He stood in rags and this time I could see his face. His pale face was like that of a vampire and his dead gray eyes burned into mine. Then I realized he was carrying something big. My eyes grew wide and I rubbed them frantically, but when I opened them again he was still there and had moved even closer to the house. As he moved forward he stepped into a pool of moonlight and I could see what was in his hands. A chainsaw. A bloody, red chainsaw was what he carried. I wanted to scream but my mouth felt dry and scratchy, like...
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...I made sure I was early so that I would make a good first impression. After I clocked in I made my way into the kitchen where I heard loud rap music. There was no one in the French fry smelling kitchen when I first walked in. I was a little confused to why I was hearing Method man and Redman blasting out of the speakers because no one was around. I began to take off my jacket when one of the older employees came out of the freezer with a large box of pizza dough. He introduced himself as Gary and told me that he was going to be training me tonight. It was Six O’clock and the Celtics game started at seven. We had an Hour to pre make pizzas and store them in the freezer. Gary started to show me how to make the pizzas. The dough was the hardest part. I kept getting holes in the dough whenever I would try and knead it. I eventually somewhat got the hang of it. I made about four pizzas and he made the rest. We had ten total pizzas made and it was about to be game time. Gary started to pop a few of the pizzas in the oven. Orders started to come in at the same time and that was my job. I can remember my first order was a BBQ...
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...management feasibility of the project. A. NAME OF THE BUSINESS: “PIZZAZZY” The name was formed due to its root word “pizzazz” meaning appealing and captivating. This embodies our pizza’s qualities. By introducing our very own “Pizzazzy” wrapped around pizza, it unleashes a new variety of scrumptious food to crave for. * Description of the Logo Figure 1.1 Description of Logo Business Logo “Pizzazzy” logo consists of a graphic representation of the product itself. The picture interprets scrumptious pizza wrapped around. The font for “Pizzazzy Pizza” illustrates ease and as to the hue rendered it gives off insatiable flow of energy. It was partnered with a shadowy light that means branching out, to spread the delight people had experienced. It is because we believe that the product is worthy of everyone’s taste buds. The green circle signifies prosperity and continuity in terms of satisfying service the business has to offer. Circular image represents ceaselessness of innovation and customer satisfaction. On the other hand, red being the warmest of all colors was chosen for the ribbon to symbolize our warm welcome to our customers and to increase their enthusiasm and interest about our pizza. It was also traced with a touch of yellow to brighten up the mood in each valued customer. We used these different colors because of their positive energy which we hope will transcend into our business B. STORE LOCATION * The business is located...
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...YOU WANT TO ORDER A PIZZA Scene One: Once Upon a Dinnertime Mary is hanging out with a few friends and her brother. She wants to order pizza tonight, but can’t afford to do so all by herself. She won’t be able to get what she wants unless she can convince all of the others to chip in for pizza, but she has her skills from English class to help her in her mission! Our story begins… Mary: (writes on whiteboard) “Thesis: We should order a couple of pizzas for dinner tonight.” Mary: (looks over at the people watching TV) Guys? What do you think? Chris: Maybe. What do the rest of you… hmm, maybe we’d better wait for a commercial. Well, I’m paying attention. Why pizza? Mary: Uh… hmm. Chris: Also, since when do you have a whiteboard in your living room? Mary: (writes) “Pizza was a regular dinner in my family, growing up. My brother and I were always happy when our parents said, ‘Pizza night!’ Both our parents worked, which meant that there was often no one with much time to cook. They enjoyed the break from cooking, and we all enjoyed the pizza (and the break from washing dishes). We’d only have it once every couple of weeks, though, so we never got tired of it. Basically, pizza is great.” Chris: o_O What was that? Mary: I was showing that pizza is delicious! …And time-saving and stuff! Chris: …Where did you talk about pizza being delicious? I just saw a story. Mary: In the middle! I said we all enjoyed the pizza. Chris: Um. I barely...
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...It was a beautiful fall evening. The sun was just beginning to give way to incoming twilight. I could smell winter in the air, even through my closed window. Soon there'd be snow on the ground. Matchbox Twenty was playing on my clock radio. I want to push you around...” The mood was set for a soft autumn night. However the mood inside my room was quite different. I was running around trying to do a million things a one time. My makeup was all wrong for my outfit. My hair was too big, no, now too flat. My stomach was rolling inside itself. My poor tummy was on tumble dry and I couldn't quite get it to stop. I couldn't find my shoes; my shirt had foundation on the side. What I really wanted to do was to sit on my bed and cry. Brian had called twenty minutes before the chaos. I could not believe he had called me. He probably thought I was stupid because I was so tongue-tied. He asked me if I would mind coming to dinner with him and a few of his friends. Would I mind? Do cows moo? The horn honked. My frustration grew. If this was a real date, my first one ever, shouldn't he come to the door and pick me up? Maybe take my arm in his and lead me to the car? I had envisioned my first date to at least start off right. This must be an omen. I walked out the door. The moment I heard the click of the lock I knew I looked horrible. A million thoughts raced through my mind, among these were the fact that I should have worn the blue shirt, my hair looks horrible, and oh God everyone is watching...
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