Capital Structure Stewart C. Myers The Journal of Economic Perspectives, Vol. 15, No. 2. (Spring, 2001), pp. 81-102. Stable URL: http://links.jstor.org/sici?sici=0895-3309%28200121%2915%3A2%3C81%3ACS%3E2.0.CO%3B2-D The Journal of Economic Perspectives is currently published by American Economic Association. Your use of the JSTOR archive indicates your acceptance of JSTOR's Terms and Conditions of Use, available at http://www.jstor.org/about/terms.html. JSTOR's Terms and Conditions of Use provides
Words: 12907 - Pages: 52
projects, achieve an optimal capital structure, and repurchase undervalued shares. To accomplish these goals, Midland must calculate an appropriate cost of capital that will allow reasonable valuations of their strategies. In funding overseas growth, Midland must use its cost of capital to analyze, evaluate, and convert foreign cash flows. In evaluating value-adding projects, the cost of capital must be used to discount project cash flows. To optimize its capital structure, the company must continuously
Words: 2133 - Pages: 9
When I was enrolled in the University of Nottingham Ningbo, I did not know I would foster such a strong interest in finance. From financial statements to financial instruments, great delight was evidenced in my study. Reviewing the past three years, my understanding towards classic financial theories was raised from vivid case studies and seminar discussions. Thanks to the advanced British concept of education, I was trained to think critically and allowed much time to be spent on the topics I am
Words: 849 - Pages: 4
Padgett Paper Products Case Study Solution Case Solution Outline -Summary -Problem Statement -Company -Market -Product -Projections -Options -Current Capital Structure -Proposed Capital Structure -Review Summary Objective: To find a mutually acceptable debt structure that will minimize lender risk while increasing company value. Constraints: 1) realistic cash flow projections, 2) Bank safety levels Situation for each Business Group Bank: Over extended and is in a bad situation
Words: 968 - Pages: 4
This capital can go to any financial need such as; research expenses, advertising, license and permit fees, and to the purchasing of supplies and equipment. There are many good reasons why a company would incur long-term debt, but too much debt could obviously cause problems. One area of long-term debts that we observed is the analysis of the debt to equity ratio. The following includes an evaluation of the impact on the capital structure, as well as recommendations for debt management, capital allocation
Words: 1491 - Pages: 6
Information 2012: 1 (b) Business structure and financial structure (comparison and relative advantages of the chosen organization) 5 (c) Compare and comment on the finances of business: 7 (d)Recommend potential investor for the investment decision: 8 (e)All possible Sources of finance for 500000 and best source 8 (f) Management of working capital: 10 Task 2: 11 (a)Preparations of a cash flow forecast and comment on budget and cash flow: 11 (b)Recommendation for managing cash flow: 12 Task
Words: 3459 - Pages: 14
Business Finance and the Capital Structure FIN 100 Strayer University August 4, 2014 Business Financing and the Capital Structure Small business can finance their firms through debt or through equity sources of capital. Debt sources typically include; short or long-term loans from wealthy individuals to banks, while equity sources often include the owner’s wealthy individuals and/or Angel Networks. Venture capital is not a typical source of equity financing for most small business
Words: 980 - Pages: 4
your analysis, what recommendations would you give Phillips on each of the items listed below? In each case, justify your recommendations and estimate how much the decision will change the “true” value of the company and its value in the eyes of an investor in a private company. a. The lease or buy decision, including whether to structure as an operating lease. The new canning equipment should be leased over the 14 year term with no bargain purchase option so as to structure it as an operating
Words: 336 - Pages: 2
cash flow projections and discounts the cash flow at a discount rate which was calculated using two of three options. In turn, this was done using the Weighted Average Cost of Capital (WACC). The motive for using WACC to get the discount rate is to attain excellent results. WACC’s utilization is viewed as a more ideal structure when the values attained reflects more than the Current Cost of Investment. The sum total of all the discounted cash flows are referred to as the Value of the firm. Mr.
Words: 1166 - Pages: 5
Financial Analysis of the McDonalds Company Stock ticker symbol, exchange where traded _________ Address of company headquarters _________ Company phone number __________ Your name, etc. PART 1, COMPANY OVERVIEW: a. Brief description of the company (one paragraph, briefly summarizing the company’s business) b. Company history (origin, major developments, etc.) c. Organization (describe how the company is structured) d. Main products and services (describe what the company sells; how
Words: 593 - Pages: 3
