The American economic JUNE 1958 Revlew NUMBER THREE VOLUME XLVIII THE COST OF CAPITAL, CORPORATION FINANCE AND THE THEORY OF INVESTMIENT By FRANCO MODIGLIAN1 AND MERTON H. MILLER* What is the "cost of capital" to a firm in a world in which funds are used to acquire assets whose yields are uncertain; and in which capital can be obtained by many different media, ranging from pure debt instruments, representing money-fixed claims, to pure equity issues, giving holders only the
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sparkling idea rather then some thoroughly planned enterprise. Later become big player and taking its place into market niche. At first look it seems that the company has been raised as a child, engaging only family into the beginning with starting capital of just few hundred pounds. But we needn’t look at this briefly, we should focus exactly on this very moment and deduct conceiving of the idea from its initial start. As founder of the company says - ‘I was determined I wouldn’t go over my £600 –
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Nowadays, the global maritime logistics has developed more and more important role in the process of globalization. In the era of knowledge-driven economy, the external environment for global maritime logistics has changed a lot, which presents more and higher requirements for global maritime logistics management accordingly. The changes in global maritime logistics internal requirements and external environment certainly impel the adjustments in management philosophy, business strategy, institutional
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International Business What Is Organizational Architecture? * Organizational architecture is the totality of a firm’s organization including: 1. Organizational structure * the formal division of the organization into subunits * the location of decision-making responsibilities within that structure - centralized versus decentralized * the establishment of integrating mechanisms to coordinate the activities of subunits including cross-functional teams or pan-regional
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strategy BUSINESS STRUCTURES | ADVANTAGES | DISADVANTAGES | Companies | * Your liability for the company’s debts is limited, although this protection can be destroyed by creditors, including financiers, calling for guarantees from company directors * It’s easy to transfer ownership by selling shares to another party * Shareholders (often family members) can be employed by the company * Taxation rates can be more favourable * You’ll have access to a wider capital and skills base
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FINANCE HONOURS 2011-2012 Topic: Behavioural corporate finance Lecturer: Yue (Lucy) Liu E-mail: Yue.Liu@ed.ac.uk Outline Psychological phenomena Biases Heuristics Framing effects Impact on corporate finance Valuation Capital Budgeting Capital structure Dividend policy Mergers and acquisitions Yue (Lucy) Liu 2011/2012 Corporate Finance 2 Psychological phenomena Bias Excessive optimism Overconfidence Confirmation bias Illusion of control Heuristics Representativeness
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Social Science Vol. 2 No. 19 [Special Issue - October 2011] Perceived Relationship between Corporate Capital Structure and Firm Value in Nigeria Semiu Babatunde ADEYEMI Department of Accounting University of Lagos Lagos, Nigeria Collins Sankay OBOH Department of Accounting University of Lagos Lagos, Nigeria Abstract This study examined the empirical effects of corporate capital structure (financial leverage) on the market value of a selection of firms listed on the Nigerian Stock Exchange. Both
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purpose of this report is to evaluation Wheel Industries on their procedures involving long-term investment opportunities. This report will provide a detailed illustration of the use of several techniques for evaluating capital projects, including the weighted average cost of capital to the firm, the anticipated cash flows for the projects and the methods used for project selection. This report will also include evaluations of two other projects, in detail of the risk of future investments. Scenario:
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1.0 Introduction Capital markets are a major source of finance for large companies engaging in investment projects. Successful investment projects can bring tremendous returns to shareholders in the form of dividend payment and increased share value. However, the source of finance affects a company’s overall cost of capital and by extension its dividends to shareholders. This report addresses the importance of the capital market and the efficient market hypothesis theories. The various source of
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the his mid-sized telecommunications software company. The introduction of the case places TEOCO at a major juncture, having recently completed an acquisition which doubles the size of the company and committed to a new ownership structure with a venture capital company’s minority equity investment. Reasons behind the unlikely partnership agreement are discussed before delving into TEOCO’s background and core product categories. The industry landscape and company’s growth strategies are described
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