4 JJG Co is planning to raise $15 million of new finance for a major expansion of existing business and is considering a rights issue, a placing or an issue of bonds. The corporate objectives of JJG Co, as stated in its Annual Report, are to maximise the wealth of its shareholders and to achieve continuous growth in earnings per share. Recent financial information on JJG Co is as follows: Turnover ($m) Profit before interest and tax ($m) Earnings ($m) Dividends ($m) Ordinary shares ($m) Reserves
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EFB 360 Finance Capstone Case Study 2 Distribution to shareholder: Dividends and Repurchase The case of Gainesboro Machine Tool Corporation Abstract 1 Introduction 1 Dividend Irrelevance Proposition 1 Financial Flexibility 2 Agency Theory 2 Signalling Theory 3 Clientele Effects 4 The Optimal Payout Ratio 5 Share Repurchase 7 Conclusion 8 References 10 Appendices 13 Appendix 1: Detailed Calculation of Unused Debt Capacity (0%, 20%, 40% and residual payout) 13 Appendix
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area. The analysis of banking performance has received a great deal of attention in the banking literature. A common framework used by supervisors is the CAMELS framework, which uses basic financial ratios to help evaluate a bank’s performance (Yue, 1992 various studies includes the use of financial ratios to analysis the banks’ performance appraisal, including Beaver (1966), Atman (1968), Maishanu (2004), and Mous (2005). The CAMEL framework was proposed to determine when to plan on-site examination
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liquidity is measured by liquidity ratio such as current ratio, quick ratio, cash ratio. Financing current asset Current Assets require financing by use of either current funds or long term funds. There are three major approaches to financing current assets. These are: a) Matching Approach Under this approach, the firm adopts a financial plan which involves the matching of the expected life of assets with the expected life of the source of funds raised to finance assets. The firm, therefore,
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Finance is concerned with how individuals, such as managers, lenders, businesses, firms, investors, and borrowers allocate money over a specified period. This paper lists the definitions and roles of financial and accounting terms provided in the course design. The terminology that follows explains and interprets the concepts and elements relevant to the first week’s objectives and topics in Finance 370. Emphasis is placed on types of securities, markets, finance, equity, liability, ratios, and assets
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Foundations and Trends R in Finance Vol. 3, No. 1 (2008) 1–93 c 2009 C. Parsons and S. Titman DOI: 10.1561/0500000018 Empirical Capital Structure: A Review Christopher Parsons1 and Sheridan Titman2 1 2 University of North Carolina at Chapel Hill, USA, Chris Parsons@kenan-flagler.unc.edu University of Texas at Austin, USA, Sheridan.Titman@mccombs.utexas.edu Abstract This survey provides a synthesis of the empirical capital structure literature. Our synthesis is divided into three parts
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relationship. Lawrence Sports’ finance manager should also identify and create a similar list with relevant options for its current short term financing program. The company will use the cash inflow and outflow ratio and the cash balance to measure the aggressive approach policy. The finance manager will monitor a balance ratio of cash flow and will maintain a cash balance minimum of $100,000. The aggressive short term financial policy will be implement by the finance manager, account manager and
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Ch.19 – short-term financing is concerned w/ the analysis of decisions that affect CA & CL (Networking capital=CA-CL) *Short term financial management is called working capital management * The most important difference btwn short-term and long-term is the timing of the cash flows (short term – cash inflows and outflows within a year or less) * Cash = LT – debt + Equity + CL - CA other than cash – Fixed Assets ⇒activities that increase cash: 1. long term debt 2. equity (selling some stock) 3
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identity on account of poor financial back ground and belong to Below Poverty Line (BPL) segment. Ø 60% of farmers do not have access to credit from Banks. Ø Poor pay usurious interest at 40% to 50% to Money Lenders. Even Micro Finance Institutions charge 20-30% interest. Ø More than 40% of the government’s subsidy and social spending is being siphoned off, mostly by “ghosts” and undeserving recipients. Ø In spite of best efforts, the various welfare/employment
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The subject of finance in reference to the global perspective has changed through the years in response to a growing economy. The way our economy does business today is different from years ago when corporations were all industrial and had main concerns with mergers and acquisitions. Eventually finance began to center around being able to retain capital in regards to liquidity and how to help corporations from financial trouble, due to the Great Depression of the 1930s. This later lead to a more
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