information, capital structure theory has evolved to acknowledge that the use of debt does affect the value of a firm. Modern theories of capital structure can be classified into two categories: “static tradeoff models” and the “pecking order hypothesis.” Static tradeoff models imply an optimal debtequity mix which is determined by a tradeoff between the benefits and costs of debt (i.e., balancing the tax advantages of debt against the risk of bankruptcy and agency costs). The pecking order hypothesis
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INTRODUCTION Beverly Flax and Rick Rosenfield founded California Pizza Kitchen in 1985 in Beverly Hills, California. California Pizza Kitchen is a casual dining, full service restaurant concept that specializes in gourmet pizzas with unique topping combinations. At the end of the second quarter of 2007 they operated 213 locations in 28 states and in 6 foreign countries. The company derives its revenue from three sources: sales at company-owned restaurants, royalties from franchised restaurant
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Investments Ltd is considering a project that will result in initial cash savings of $5 million at the end of the first year, and these savings will grow at the rate of 3.2% per year indefinitely. The firm has a debt/equity ratio of 4.0, a cost of equity of 12%, and an after-tax cost of debt of 6%. The cost-saving proposal is related to the firm’s core business, so it is viewed as having the same risks as the overall firm. Under what circumstances should the firm take on the project? WACC = 7.20%
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Credit Management |Program |: |MBA |Class of |: |2007 | |Semester |: |IV |Sessions |: |33 | |Course Code |: |BKG 607 |Credit |: |3 Units | Objective The objective of this course is to provide the students with adequate knowledge about
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FIN 331 Financial Institutions and Markets FINAL TERM PROJECT Spring Quarter Group 5 Shad Boots Alejandro Carral Antonio Fernandez Johnny Pham June 11, 2014 CALIFORNIA STATE UNIVERSITY OF LOS ANGELES CONTENTS Introduction ...................................................................................................................................................................2 Financial Markets .......................................................................
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| Debt Management Program in the Philippines | The first debt and debt service reduction operation the World Bank financed was the Debt Management Program Loan to the Philippines, approved in 1990. Its main objective was to help restore the Philippines' creditworthiness by reducing the destabilizing pressures exerted by an excessive debt-service burden. The government, having inherited a huge debt service obligation, formulated a debt restructuring program for the country and a request for debt-relief
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Company 2010 2011 2012 LTM Q2-2013 $10,018.9 $10,611.0 $10,221.9 $10,278.5 4.0x 4.6x 4.4x 4.4x 5.7% 8.6% 7.9% 8.8% 3.1x 2.6x 2.6x 2.6x 4.2x 3.9x 3.6x 3.5x 15.0% 13.3% 14.2% 13.2% Net Sales (in Millions) Debt / EBITDA FCF / Debt (EBITDA-Capex) / Interest (FFO+Interest) / Interest RCF / Debt All ratios reflect Moody's Standard Accounting Adjustments Note: For definitions of Moody's most common ratio terms please see the accompanying User's Guide. Opinion Rating Drivers - Muted general economic
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Financial Institutions, Instruments and Markets—7th edition Instructor’s Resource Manual Christopher Viney and Peter Phillips Chapter 1 A modern financial system Learning objective 1.1: explain the functions of a modern financial system • The introduction of money and the development of local markets to trade goods were the genesis of the financial system of today. • Money is a medium of exchange that facilitates transactions for goods and services. • With wealth being accumulated
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these challenges the outlook for UST is still positive. UST benefits from incredibly high margins with a gross margin of 80% compared to the tobacco industry mean of 28%. Due to the high levels of cash generation and a historically conservative debt policy, UST has historically been able to maintain very high credit ratings. UST is currently planning to reinstate a previously approved stock repurchasing plan that would involve borrowing 1 billion dollars over five year to repurchase stock. Considering
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2005: NOL are prescribed to only debts cannot afford to pay both principal and interest or to fall into this situation. Within 3 months, if the debts that cannot afford to pay will be provided for bad debt. However, it also depends on the terms agreed upon by a loan agreement. Based on this Decision the NOL is classified in to 4 groups as follows: • NPLs Group 1 (Debts to which attention shall be paid) : includes debts overdue for less than 90 days and reschedule debts that are now no longer due according
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