1 HOTEL OWNER / OPERATOR STRUCTURES: IMPLICATIONS FOR CAPITAL BUDGETING PROCESS Chris GUILDING Service Industry Research Centre, and School of Accounting and Finance Griffith University – Gold Coast Campus Queensland AUSTRALIA C.Guilding@griffith.edu.au Tel: (07) 5552 8790 Fax: (07) 5552 8068 I am grateful for funding support for this study provided by the Australian Cooperative Research Centre for Sustainable Tourism. I would also like to acknowledge the helpful comments
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negatively affected its Debt Equity ratios. The company intends to include the instrument as a separate class of capital under schedule 6 of Indian GAAP. This will not increase the interest burden of the company since the interest as and when paid will be recorded as a change in equity on its balance sheet. It can be counted as debt for tax purposes and as equity for ratings. The cost of capital through this instrument is also lower. Cost of equity for markets such as India is 16-24% and cost of debt
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Does high social capital lead to business growth Investments in human and social capital are widely believed to improve the performance of employees (Arthur, 1994; Bishop, 1994; Boselie, Paauwe and Jansen, 2001; Gelderblom and de Koning, 1996; Huselid, 1995; MacDuffie, 1995 human and social entrepreneurship-specific capital investments, such as earlier experience in starting up a business and the membership of an association for small business founders generate more promising start-ups.
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significant investment decisions. On the basis of recognizing cash flows differently from original proposal, the board should reject this Capex program at the present time, as it does not meet VC’s criteria for capital expenditure projects. Report A critical assessment of the capital-investment project at Victoria Chemicals’ Merseyside Works in Liverpool identifies a number of areas that need to be addressed through the identification of relevant cash flows; in particular, the treatment of: a
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through capital formation, export promotion, technological and skill transfer, increased tax revenues. Similarly, the creation of a larger middle class, encouragement of economic reforms and increased infrastructure spending has fueled the inflow of FDI into China further increasing the growth of China’s economic growth. FDI plays an extraordinary and growing role in global business. Tuan, C., & Ng, L.F-Y. (2007) pointed that FDI has fuelled economic growth in China by attracting capital investments
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increased revenue over its first ten years of business from $500,000 in its first year to $5 million in 2008. Facts However, in 2009 revenues declined to $4.5 million along with net cash flows from all activities declining in 2009 as well. Overall capital expenditures for the company have been continually increasing by 26% each year. Milton had planned on borrowing $20 million in the fourth quarter of 2010 from the credit markets. In 2010, current cash flow is expected to increase due to higher projections
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Human Assets versus Other Organizational Assets September 18, 2014 Schuler and MacMillan (1984) stated that gaining and maintaining a competitive advantage is critical to any organization’s growth and prosperity, this involves recognizing and capitalizing on their human assets (p.1). Human assets are one of the most critical parts of a business that helps the company to maintain a competitive advantage in the market (Mello, 2015). Unfortunately, some organizations do not recognize and capitalize
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Robyn Cox Unit 5 Individual Project Budgeting: FINA425-1403B-01 American InterContinental University August 23, 2014 Organizations should prepare budgets with budget control systems in place. The financial planning of the organizations targeted operation is considered budgeting. There are processes that are essential to protecting the financial well-being of the organization. There are challenges that may arise within the organization when implementing a budget and budgetary controls. What
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whether forecasted capital expenditures for DVD manufacturing should be covered through acquisition of additional debt or requested equity from New Era Partners, 2) determine if purchasing new packaging equipment should be executed immediately or postponed until 2004, 3) offer recommendations pertaining to operational and financial changes that may benefit Star River. It is recommended that Star River request equity from New Era Partners to offset the SGM 54.6 million capital expenditures forecasted
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INTELLECTUAL CAPITAL This is the intangible value of a company, and is measured as the difference between the enterprise value of a company and the market value of its tangible assets. Intellectual capital is knowledge that can be exploited for some money-making or other useful purpose. The term combines the idea of the intellect or brain-power with the economic concept of capital, the saving of entitled benefits so that they can be invested in producing more goods and services. Intellectual capital can
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