mixture of debt and equity it is called Capital Structure. A firm’s capital structure decision includes its choice of a target capital structure, the average maturity of its debt, and the specific types of financing it decides to use at any particular time. The value of a firm’s operations is the present value of its expected future free cash flow (FCF) discounted at its weighted average cost of capital (WACC). The WACC depends on the percentages of debt and common equity, the cost of debt, the
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It treats the entire subject of finance from the outsider's point of view (investment banks, lenders, other) rather than the financial decision maker in the firm. It places much importance of corporation finance and too little on the financing problems of non-corporate enterprises. The sequence of treatment was on certain episodic events like formation, issuance of capital, major expansion, merger, reorganization and liquidation during the life cycle of an enterprise. It laid heavy emphasis on
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CASE ANALYSIS: JOHNSON TURNAROUND * INTRODUCTION AND ISSUE RELATED TO THE COMPANY Johnson Pte Ltd (JPL) is a public non-listed subsidiary of FMCG group of companies based in southern Indian region. At first, it is a wholly-owned Indian government company. However, it was taken by Hong Kong group companies with 80% acquisition of the shareholdings after 20 years of operation. Johnson Pte Ltd manufactured and distributed a wide range of product including foods and commodities. Besides, it also
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AMITY INTERNATIONAL BUSINESS SCHOOL ANALYSIS AND VALUATION OF EQUITY SECURITIES OF TATA CONSULTANCY SERVICES , INFOSYS AND WIPRO LTD. SUBMITTED TO: SUBMITTED BY : Ms.Vibha Singh Atreya Vyas A1802011445 Section C MBA IB TABLE OF CONTENTS S.No | Topic | Page Number | 1 | Introduction | 3 | 2 | Research Methodolgy | 4 | 2.1 | Research Objectives
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items on the income statement and balance sheet relative to their values as of a common point in time 5: Relationships determined from a firm's financial information and used for comparison purposes 6: Formula which breaks down the return on equity into three component parts 7: U.S. gov't coding system that classifies a firm by the nature of its business operations 8: Source of cash (Asset decreases, Liability increases) 9: Use of cash (Asset increases, Liability decreases)
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National Chengchi University Department of Finance ETP Graduate Investments Fall 2014 Case Discussion Questions Instructor: Professor Edward H. Chow 周行一 Case study: financial bubble Case: Trouble with a bubble (9-808-067) 1. Why did Irving Fisher believe that stock prices had reached a permanently high plateau? 2. Why did the stock market crash in 1929? 3. Why did influential individuals like Fisher, Keynes and Rockefeller believe that the downturn would only be temporary? Case
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Financial Performance Evolution on “Square Pharmaceuticals Ltd” At first we want to express our great gratitude to our honorable Teacher to give us such a good topic for making a assignment. He gave us his helpful hand to do this assignment. His class lecture & advice help us to prepare our assignment very much which was very fruitful to us. So we are grateful to him. At the very beginning, a special note of acknowledgement is due to our course teacher, Mr. X, for giving us the permission
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Sample Operational and Financial Analysis Report Financial Analysis and Assessment Sample Company Industry: Contract Research Organization Periods: One fiscal year against the previous fiscal year LIQUIDITY Generally, what is the company's ability to meet obligations as they come due? In this case, the company's liquidity position is about average for the industry in which it operates. Having average liquidity means that, generally, there are adequate liquid assets relative to short-term obligations
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or debt ratio – debt compared with equity * Profitability of growth ------------------------------------------------- Equity ratio – how good you are in paying your short term debts SLIDES PROFITABILITY RATIO – examine the degree of profit – usually a percentage (less than 1) * Very few are times (e.g 1.1 times?) a) Return on assets: measures the overall profits on the assets that the company has used to generate the profits Return on Assets = Net income (revenue-expense)
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Running head: COCA-COLA VS. PEPSI Financial Management The Business Enterprise – BUS508 Abstract Coca-Cola and Pepsi are very popular and widely recognized beverage brands in the world. This document will discuss each company’s current ratio and profitability ratio and make conclusions for the company’s profits over the past three years. The document will also discuss based on research which company is more likely to satisfy it stockholders. I will provide rational for determining
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