relationship between working capital policy and operating risk: an empirical study on Jordanian industrial companies Abstract The study analyzes the working capital management practices and their impact on profitability and risk of industrial Jordanian firms for the period of 2004 to 2007. The total sample of the study consists of 59 industrial firms listed on Amman Stock Exchange. The working capital management practices examine the impact of aggressive/conservative working capital investment and financing
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existing major competitors, the so called “Big Three” operators of Rogers, Bell and Telus, begun to clash more intensively, the market place is attracting many fast growing new entrants as well. To achieve its growth goals, Rogers need to determine an optimal set of corporate level strategy and business level guiding policies to maintain its market leader position in the long term. Rogers need to seek ways to leveraging its resource strength and improving upon its weaknesses to develop a long-term sustainable
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amount of financing. 3. Based on your answers in Part 2 and the company’s financing requirements, identify and explain the company’s main source of financing. Evaluate the importance of the financing source and the effects on the company’s capital structure. Answer: PROFILE The history of the PROTASCO BHD can be traced back to the early 1990s when its founders, Dato’ Hasnur Rabiain bin Ismail and Dato’ Chong Ket Pen started in the road construction business by setting up of HCM in 1991. In
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determinants of capital structure which influence the leverage ratio and the study is also proposed to find out relationship of different explanatory variables with each other whether positive or negative influence exists. The variables taken in this study are Leverage, earnings before interest and tax, business size, fixed asset, depreciation and market to book value. This study also includes expression of different economic and financial analyst about the determinants of capital structure and this study
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the Cost of Capital The Cost of Capital The purpose of this case is to present evidence on how some of the most financially sophisticated companies and financial advisers estimate capital costs. This evidence is valuable in several respects. First, it identifies the most important ambiguities in the application of cost-of-capital theory, setting the stage for productive debate and research on their resolution. Second, it helps interested companies benchmark their cost-of-capital estimation practices
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Ecole des Hautes Etudes en Sciences Sociales Ann´e 2007 e Num´ro attribu´ par la biblioth`que e e e ———————————— Essais en Finance d’Entreprise THESE POUR LE DOCTORAT EN SCIENCES ECONOMIQUES DE L’ECOLE DES HAUTES ETUDES EN SCIENCES SOCIALES Pr´sent´e et soutenue publiquement par e e David SRAER le 29 Juin 2007 Directeur de th`se e M. Jean Tirole Directeur d’Etudes ` l’E.H.E.S.S. a JURY M. Denis Gromb, Mme. Ulrike Malmendier , M. Brunos Biais, M. Jacques Cr´mer, e Professeur
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Chapter 1 Answers Question 2.Shareholders want high long-term profits. Managers want job security and wonderful perks and amenities. Since risk and return tend to be positively related, managers may wish to avoid risks that shareholders want the managers to undertake. To encourage managers to take on risks, compensation committees can place a greater weight of their compensation on long-term incentives such as stock, options to buy stock, and bonus based on surpassing the performance of comparable
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quality of factors of production like land, labor, and capital * Companies can * lower their overall cost structure * improve the quality or functionality of their product offering * Firms source goods and services from locations around the globe to capitalize on national differences in the cost and quality of factors of production like land, labor, and capital * Companies can * lower their overall cost structure * improve the quality or functionality of their
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Recommend a capital structure approach that maximizes shareholder return In order for a company to acquire the necessary resources for its operation, it must have the right composition of capital structure financing. A capital structure is made of up of two types of financing, namely debt and equity. Debt comes in various forms such as bond and long term notes payable and equity can be either common stocks or preferred stock. Both methods of financing have their advantages and disadvantages.
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explain how they affect one another. More specifically, for what purposes are they used and how do they relate to one another: efficient portfolio, individual investor, short selling, Sharpe ratio, beta and CAPM. Efficient portfolio: It is an optimal portfolio that provides
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