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
Words: 4064 - Pages: 17
sales grew 1.4% and total sales grew 0.6% to $50.5 billion. Net earnings increased by 6.5% to $2.0 billion and diluted earnings per share increased 18.2% to $1.69. Operating cash flows, along with the net issuance of $1.4 billion of long-term debt, were used to acquire $1.2 billion in fixed assets and return $5.1 billion to shareholders through dividends and share repurchases. Robert A. Niblock Chairman of the Board, President and Chief Executive Officer OUR PROGRESS Our transformation is centered
Words: 42739 - Pages: 171
Cases Xytech, Inc. provides practice in accounting for various owners’ equity transactions. Innovative Engineering Company involves comparison of alternative financing arrangements for a new company. UPC, Inc., examines the calculation of earnings per share for annual periods. Maxim Integrated Products, Inc., provides a platform to discuss accounting for stock options under PAS 123R. This is a new case with this edition. Problems Problem 9–1 a. (1) Debt/Equity Debt/Capitalization Ratio Ratio Including
Words: 5515 - Pages: 23
distribution system through the acquisition of M&M aerospace hardware3. Due to the terrorist attacks in 2001 BEAV closed five facilities and also cut thirty percent of its workforce. PROBLEM DEFINITION In October 2004, the company had issued 18.4 million4 shares of common stock to raise 156 million5.This was done to clear some high yield debt and to reduce interest expense in order to achieve a more balanced capital structure. After this restructuring BEAV’s debt to value came down to 79%6. Tom McCaffery
Words: 2314 - Pages: 10
There are two widely applied approaches, viz. (a) profit maximization and (b) wealth maximization. The term 'objective' is used in the sense of an object, a goal or decision criterion. The three decisions - Investment decision, financing decision and dividend policy decision are guided by the objective. Therefore, what is relevant - is not the overall objective but an operationally useful criterion: It should also be noted that the term objective provides a normative framework. Therefore, a firm should
Words: 21079 - Pages: 85
yahoo2013.tumblr.com YAHOO 2013 ANNUAL REPORT EDITORIAL EXCELLENCE YAHOO ON THE ROAD MONTHLY MOBILE USERS “2013 was a year of tremendous progress at Yahoo.” YAHOO IN NYC SEARCH 400M+ Enhancing Search TOP TECH TALENT monthly mobile users INCREASE IN AVERAGE MONTHLY USERS TALENT TUMBLR ACQUISITION 340,000+ Job Applications 800M+ average monthly users YAHOO 2013 ANNUAL REPORT NEW MAIL EXPERIENCE YAHOO WEATHER APP 50% YAHOO SPORTS Nearly half of new hires
Words: 81782 - Pages: 328
decline in Net Income, and Gross Profit Margin. Secondly, current market value of equity /debt ratio reflects a way more positive situation than the book value ratio. However, since it heavily depends on the market value of its share, Deluxe has to keep the market value of its share stable at certain level. Another risk factor is the firm may have a hard time paying its commercial paper of 150 million in the near future. The risk of default is not significant yet. However, the company will have to make
Words: 1336 - Pages: 6
Summary Taxes and Business Strategy Chapter 1: Introduction to tax strategy The objective of the book is to provide you with a framework that is useful for thinking about how taxes affect decisions, both at the individual level and within organizations. The book adopts a global planning approach to taxes and business strategy. A. The three key themes underlying our approach to effective tax planning 1. Effective tax planning requires the planner to consider the tax implications of a
Words: 17141 - Pages: 69
people’s lives through manufacturing of useful products by using this complex technology called GPS. This way the customer’s daily lives become less complicated and improved. Garmin also has a proven track record of solid revenue and earnings per share growth (www.forbes.com/garmin). Balance Sheet Analysis: The balance sheet ratios for Garmin for different years test the company’s liquidity and financial strength. “The smart business analyst comes to the balance sheet first to gauge the overall
Words: 933 - Pages: 4
000 + 1716480 ) - (359,800 + 380,000) = -1,567,096 3. Uses of Free Flow for 2011 1. Pay interest to debtholders. 80(1-.40) = 48 2. Repay debt holders. (359,800+10000000)-(500,000-720,000)= 1139800 3. Pay dividends to debtholders. 250,000*.220=55,000 4. Repurchase stock from shareholders. 460,000-1680936=1220936 5. Buy short-term investments. 71,632-20,000=51,632 4. For 2011 Find the Following- Current Ratio: current assets/current liabilities = 2680112/1039800 = 2.6
Words: 446 - Pages: 2
