Ratios Return on Equity 2011 2010 2009 8.94 7.11 6.28 Return on Assets 2011 2010 2009 4.54 3.77 3.39 Assets to Equity 2011 2010 2009 1.97 1.88 1.85 Accounts Receivable Turnover 2011 2010 2009 11.69 13.11 14.02 Average Collection Period 2011 2010 2009 31.23 27.85 26.03 Inventory Turnover 2011 2010 2009 6.08 4.51 3.47 Days in Inventory 2011 2010 2009 59.9 80.88 104.98 Debt Ratio 2011 2010 2009 .49 .47 .46 Debt to Equity Ratio
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"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 right to a pro-rata share in the uncertain venture.? This question has vexed at least three classes of economists: (1) the corporation finance specialist concerned with the techniques of financing firms so as to ensure
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Background: The Pioneer Petroleum Corporation is a hydrocarbons-based company, concentrating on oil, gas, coal, and petrochemicals. One of the critical problems confronting management and the board of Pioneer was the determination of a minimum acceptable rate of return on new capital investments. The company's basic capital budgeting approach was to accept all proposed investments with a positive net present value when discounted at the appropriate cost of capital. Further, the company is contemplating
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and the South Branch’s comparison when it comes to profitability, short-term and long-term liquidity. * Cash flow provided * North Branch 600,000 * South Branch 550,000 * Assumptions * The balances in asset and equity accounts at year-end approximate the average balances during the period. * Income tax rate was 30% Simplified and Condensed Income Statements Tasks Using appropriate financial
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Venture Capital and Private Equity Contracting This page intentionally left blank Venture Capital and Private Equity Contracting An International Perspective Douglas J. Cumming Associate Professor and Ontario Research Chair, York University – Schulich School of Business, Toronto, Ontario, Canada Sofia A. Johan Senior Research Fellow, Tilburg Law and Economic Centre (TILEC), Tilburg, The Netherlands AMSTERDAM • BOSTON • HEIDELBERG • LONDON • NEW YORK • OXFORD PARIS • SAN DIEGO •
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First of all, we need to know the meaning of the capital structure. Based on the view of business finance, capital structure is about how a company operates their finance such as equity and debt. It is a common thing for a company has a debt and equity. For example, a company has 30% of equity-financed and 90% of debt-financed; the ratio of debt over total financing is the leverage of a company (Capital Structure 2015). Capital structure can be explained through the theory such as trade-off
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Performance evaluation and ratio analysis of Pharmaceutical Company in Bangladesh Faruk Hossan Md Ahsan Habib Supervisor: José Ferraz Nunes Examiner: Bengt Kjellén Master‟s thesis in international Business 15 ECTS Department of Economic and Informatics University West Spring term 2010 0 ABSTRACT The thesis applies performance evaluation of pharmaceutical company in Bangladesh. It means evaluate how well the company performs. The main aim is achieved through ratio analysis of two
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view is based on four principles. First, bank defaults are costly for society because of the deposit insures mechanism. Regulation gives banks incentives to hold adequate capital levels to minimize the use of insurance. Further, the moral hazard problem of banking, that bank managers take more risk than desired by debtors, is addressed when losses are incurred by shareholders too due to lower dividends (retained earnings are used to build up buffers). Higher capital charges for riskier assets prevents
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significant loss in value. It’s desirable for firms to have high liquidity so that they have a large factor of safety in meeting short-term creditor demands. However, since liquidity also has an opportunity cost associated with it—namely that higher returns can generally be found by investing the cash into productive assets—low liquidity levels are also desirable to the firm. It’s up to the firm’s financial management staff to find a reasonable compromise between these opposing needs. The recognition
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accounts receivable from a customer. (c) Transfer of an accounts payable to a note payable. 2. Transactions (a), (b), (d) are considered business transactions and are recorded in the accounting records because a change in assets, liabilities, or equities has been effected as a result of a transfer of values from one party to another. Transactions (c) and (e) are not business transactions because a transfer of values has not resulted, nor can the event be considered financial in nature and capable
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