unexpected considering the inactive debt market in Nigeria, the dominance of the money market in the Nigerian financial system, the shallow nature of the Nigerian capital market, the buy-hold syndrome of the Nigerian investors and the macro economic instability in the country. It was recommended that adequate fiscal policies, relevant capital market institutional and legal framework should be put in place. These measures, we believe, will enhance the development of the
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private equity firms, venture capital firms, or angel investors, each with their own set of goals, preferences, and investment strategies, yet each providing working capital to a target company to nurture expansion, new product development, or restructuring of the company’s operations, management, or ownership. Among the most common investment strategies in private equity are: leveraged buyouts, venture capital, growth capital, distressed investments and mezzanine capital. Insolvent Unable to pay
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The Investor Relations Society ‘Determinant Factors for Best Investor Relations’ 1. Best Communication of strategy, performance and key performance indicators (KPIs) in the annual report |Business and financial review |Best Practice | |requirements |
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environment which identifies four sets of variables, and an additional two, which influences a company’s ability to establish and maintain competitive advantage within international markets. These interacting determinants are: factor conditions; demand conditions; related and supporting industries; and firm strategy, structure and rivalry and form what Porter refers to as the “national diamond.” The four main determinants can also be understood as the availability of resources to various industries, the information
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Index | S/N | Topics | Page No. | 1 | ACKNOWLEDGEMENT | 00 | 2 | Initialization | 01 | 3 | Managerial Decision | 02 | 4 | Z- Score Analyze | 03 | 5 | Z – Score from Financial Statement | 03-09 | 6 | Result Verification | 10 | 7 | Reference | 00 | Initialization Bangladesh Development Bank Limited (BDBL) Bangladesh Development Bank Limited (BDBL) is fully state owned Commercial Bank of Bangladesh. In addition commercial banking, BDBL provides financial and technical assistance
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because increase in leverage will cause an increase of the beta of the firm. Moreover leverage increases Earnings per share, but still creates risk. Modigliani and Miller says that no capital structure is better than the other because this doesn’t change the total value of the outstanding shares by changing the capital structure. But the required return will be higher since leverage increases risk. As for stock repurchase, instead of paying dividend company may choose stock repurchase. There are 3 ways
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1.a.) Business risk is the equity risk arising from the nature of the firm’s operating activity, and is directly related to the systematic risk of the firm’s assets. Financial risk is the equity risk that is due entirely to the firm’s chosen capital structure. As financial leverage, or the use of debt increases, so does financial risk and, hence, the overall risk of the equity. Business risk depends on a number of factors, including competition, liability exposure, and operating leverage. b.) In
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between Inside Owner/Managers and outside owners 3. Conflicts between managers and shareholders Conflicts between stockholders and creditors Conflict between shareholders and creditors is common for the company which use debt capital to form an optimum capital structure. As mentioned earlier, agency relation exist when one party works as an agent of the principal. In an organization management works as a agent of owner or share holders. When managers work for the company they can be influenced
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How a company is finance its growing business, operations by using multi types of funds is called capital structure, both short & long term loan need to be counted when explaining a company capital structure. Company can chose whatever percentage of debt and equity they like to have is their business. Four primary factors influence capital structure decisions- 1. Business risk- the higher the company business risk, the lower the proportion of debt is good 2. Tax proposition- a significant
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Business-Level Strategy Business Level Strategy Is the objective of developing a firm specific business model that will allow a company to gain a competitive advantage over its rivals in a market or industry. The way that strategic managers define their company’s business is the first step in crafting business level strategy. Customer Needs and Product Differentiation Customer needs are desired, wants or cravings that can be satisfied by means of the attributes or characteristics of a product a good or
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