STANDARD EDITION Ross Westerfield Jordan FUNDAMENTALS OF CORPORATE FINANCE tenth edition StuDEntS... Want to get better grades? (Who doesn’t?) Prefer to do your homework online? (After all, you are online anyway…) Need a better way to study before the big test? (A little peace of mind is a good thing…) With McGraw-Hill's Connect Plus Finance, ® StudentS get: • Easy online access to homework, tests, and quizzes assigned by your instructor. • Immediate feedback on how you’re doing
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Total Capital | 50% Debt to Total Capital | 70% Debt to Total Capital | 1980 | Net Worth | $1,472.8 | $877.6 | $626.9 | $376.1 | $1,482.7 | Earnings per Share5-year CAGR | $3.1812.4% | $3.3312.4% | $3.4112.4% | $3.4912.4% | $2.413.0% | Return on Equity | 33.8% | 51.5% | 63.9% | 110.5% | 13.0% | Interest Coverage | 415.13 x | 17.5 x | 10.5 x | 7.5 x | 5.0 x | Debt to Total Capital | 0.9% | 30.0% | 50.0% | 70.0% | 32.4% | Bond Rating | AAA | | | | AAA/AA* | American Home Products
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CONDITION We experienced growth in earnings from $98M in 2002 to $1.84B in 2011, due to improved operating margins (Appendix 1). The improvements in ROE and ROA have outpaced our competitors, implying that we are getting higher returns for each dollar invested in shareholder’s equity and assets. Although we have a more aggressive debt strategy, our D/E ratio never exceeded 50% from 2002 to 2011. Despite the slight 4% decrease in our cash and current ratios, their values are still well above one. We are
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money in. This approach examines the past returns and volatility of various asset classes and also looks at their correlation—how they perform in relation to each other. From these numbers wealth managers calculate the optimum percentage of a portfolio that should be invested in each asset class to achieve an expected rate of return for a given level of risk. It is a relatively neat construct. But it has its problems. One is that past figures for risk, return and correlation are not always a good guide
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A Longitudinal Study of the Cause and Consequences of Changes in Diversification in the U.S. Pharmaceutical Industry 1977-1986 Author(s): Charles W. L. Hill and Gary S. Hansen Reviewed work(s): Source: Strategic Management Journal, Vol. 12, No. 3 (Mar., 1991), pp. 187-199 Published by: Wiley-Blackwell Stable URL: http://www.jstor.org/stable/2486592 . Accessed: 16/09/2012 06:40 Your use of the JSTOR archive indicates your acceptance of the Terms & Conditions of Use, available at . http://www
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class. 2) 2010 2009 Return on assets (ROA) -4.62% -2.68% Return on equity (ROE) -46.63% -24.32% Burden Ratio 4.02% 2.89% Net interest margin 2.41% 3.05% Non-Performing Loans/ Total Loans 4.69% 4.10% Rates Paid on Funds (RPF) 1.98% 2.25% Capital Adequacy Ratio (CRAR) 19.20% 14.09% From these financial calculation, Return on Assets and Return on Equity in 2010 had decrease from 2009. It shows that NBC was
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Introduction Recent global financial crisis has highlighted the problems in the current financial system. Some of the analysts have even termed it as the downfall of the capitalism and interest based economy driven by ‘greed’ and has acknowledged the need of a new financial system. One interesting development in this whole scenario was the relative stability of Islamic Financial Institutions (IFIs). In the last decade, IFIs have witnessed an impressive growth and have begun to make an impact on
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to facilitate their smooth operations. Cash requirement can be raised from different sources, ranging from equity, various forms of debt, to internally generated funds through retained earnings which would otherwise be distributed to shareholders (Myers and Myers, 1991; J. Gitman, 1991). The sources of finance can be classified as Internal and External, Short-term and Long-term or Equity and Debt (Bromwich & Bhimani, 2009, pp.45). The two main sources of finance for business include internal and
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b. Estimated value () is the present value of the expected future cash flows. The market price (P0) is the price at which an asset can be sold. c. The required rate of return on common stock, denoted by rs, is the minimum acceptable rate of return considering both its riskiness and the returns available on other investments. The expected rate of
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Limitations of the study: Of course this term paper is not flawless and we had several limitations. The limitations of the study are given below. * Time shortage was one of the major limitations. * Coordination among the group members was another problem. * Collecting information from the annual report was little bit difficult because we do not have that much practical
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