Problems in Capital Structure Research: The FinancialDebt-To-Asset Ratio and Issuing Activity Versus Leverage Changes IVO WELCH Brown University, RI and NBER ABSTRACT This paper points out two common problems in capital structure research. First, although it is not clear whether non-financial liabilities should be considered debt, they should never be considered as equity. Yet, the common financial-debt-to-asset ratio (FD/AT) measure of leverage commits this mistake. Thus, research on increases in
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Accounting FOR DUMmIES 4TH ‰ EDITION By John A. Tracy, CPA Accounting For Dummies®, 4th Edition Published by Wiley Publishing, Inc. 111 River St. Hoboken, NJ 07030-5774 www.wiley.com Copyright © 2008 by Wiley Publishing, Inc., Indianapolis, Indiana Published by Wiley Publishing, Inc., Indianapolis, Indiana Published simultaneously in Canada No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical
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Weekly Price: (US$) 1 Year 2 Years 55 50 45 40 35 TARGET PRICE $54.35 TARGET PRICE $54.35 TARGET PRICE $54.35 PRICE $54.35 1 Yr. 131.08 3 Yr (Ann) 0.36 30 25 20 15 Rating History HOLD Volume in Millions BUY 20 10 RETURN ON EQUITY (%) PFCB Q3 2009 11.86 Q3 2008 11.87 Q3 2007 10.70 P/E COMPARISON Ind Avg 9.91 25.50 33.38 S&P 500 3.25 9.77 15.84 2008 2009 2010 0 COMPUSTAT for Price and Volume, TheStreet.com Ratings, Inc. for Rating History RECOMMENDATION
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The Coca-Cola Company FINANCE Spring 2013 [FNCE 601] February 1st, 2013 | WEMBA38 | Team 17 Mathieu Verbeeck Why has coca cola been so successful in the past? When Douglas Ivester took over the reigns at Coca-Cola in October 1997, he had big shoes to fill – indeed, Goizueta – who passed away earlier in the year – would be remembered as one of the greatest wealth builders of the 20th century: during his tenure as CEO, Coca-Cola’s market value grew from $4.3 billion to $165 billion
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Accounting for Leases Rae Girl ACC306 Intermediate Accounting II Professor Bill Wax August 21, 2015 Accounting for Leases Leasing is a commonly used financing vehicle in both personal and business arenas because the lease allows the parties to accomplish a sales-type transaction that benefits each without the commitment of an outright purchase on the part of the lessee. While the basic concept of a lease is simple, there are many complexities in theory and practice that have given rise to
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Chapter 14 Working Capital and Current Assets Management LearningGoals 1. 2. 3. 4. 5. 6. Understand short-term financial management, net working capital, and the related tradeoff between profitability and risk. Describe the cash conversion cycle, its funding requirements, and the key strategies for managing it. Discuss inventory management: differing views, common techniques, and international concerns. Explain the credit selection process and the quantitative procedure for evaluating changes
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I. Industry Background San Miquel Corporation Established in 1890 as a single-product brewery,San Miguel Corporation (San Miguel) is the Philippines’ largest beverage, food and packaging company. Today, the company has over 100 facilities in the Philippines, Southeast Asia, and China. One of the country’s premier business conglomerates, San Miguel’s extensive product portfolio includes over 400 products ranging from beer, hard liquor, juices, basic and processed meats, poultry, dairy products
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Fire Sales: An Overview “The term “fire sale” has been around since the nineteenth century to describe firms selling smoke-damaged goods at cut rate prices in the aftermath of a fire” (Shleifer 2011). In the fields of economics and finance, “fire sale” has been adopted to describe the distressed sales of assets at prices well below their true value. This deviation of asset price is a key amplifier during financial crisis and often acts as a contagion, spreading illiquidity problems to firms in
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and equipment. It is the ratio of sales to net fixed assets. Total assets turnover ratio measures the turnover of all the firm’s assets; it is calculated by dividing sales by total assets. c. Financial leverage ratios measure the use of debt financing. The debt ratio is the ratio of total liabilities to total assets, it measures the percentage of funds provided by nonequity holders. The times-interest-earned ratio is determined by dividing earnings before interest and taxes by the interest charges
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10/24/2011 WHAT IS A FEASIBILITY STUDY • A feasibility study is defined as an evaluation or analysis of the potential FEASIBILITY STUDY impact of a proposed project or program. It is conducted to assist decision‐ makers in determining whether or not to implement a particular project or p g program. • The study is based on extensive research on both the current practices & the proposed project & its impact on the current practice of the enterprise. • The feasibility study
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