fixed costs that Cat and Dogs, Inc. have include rent and executive salaries, which are paid no matter how many units the company builds. The company's total fixed costs are $113,200 per month. Variable costs are the factory labor and raw materials, Continue Reading...
Convertible Debt: Relevance and Features In basic terms, a convertible debenture can be viewed as a means of financing in which case the debt-holder is given an option of converting the debt to stock. Like an ordinary debt, convertible debentures pa Continue Reading...
Long-Term Debt 1st Student: According to Cleverley, Song and Cleverley (2011), there are four options for health care organizations for finding long-term debt financing. These four options are tax-exempt revenue bonds, Federal Housing Administratio Continue Reading...
U.S. Debt Crisis Financial crisis is not a totally new concept. It is a fact that more than three quarters of the entire members of the IMF, whether they are developed or developing countries have been affected by a serious financial crisis ever sin Continue Reading...
Sourcing equity / Tax management Contrasting between global tax systems National taxing has been proven to affect economic decisions made by MNEs. Typically, the settlement of taxation will take two different approaches, which are the worldwide app Continue Reading...
International Equity Markets Advantages and disadvantages of cross listing on stock exchanges When a company lists its stock exchange on many stock exchanges in different countries, it is referred to as cross listing. It entails exchanging in more Continue Reading...
The company entered into new deals with both the CAW and the UAW in order to shed some of the legacy costs (Merx, 2009). The deal in the United States gave the union-run Retiree Health Care Trust a 17.5% stake in the post-bankruptcy version of GM an Continue Reading...
Economics Coca Cola uses the equity method of accounting and, inherent in that and similar to it the SABC (activity-based costing) method. There are three cost accounting techniques: The Cost method -- the company records all income as received an Continue Reading...
Canceling Student Loan Debt for Black StudentsStudent loan debt problem is one of the major social issues in the United States education sector. This problem is fueled by various factors, particularly the fact that tuition fee is outpacing the abilit Continue Reading...
Shuffle master is a little known equity, as evidenced by the fact that it is 95% owned by institutional investors such as pension funds and mutual funds. It is what would be considered a small cap stock, with a capitalization of a mere 500 million do Continue Reading...
Question Debt is the main reason large companies have significant differences between the 25% and 75% quartiles, specifically focusing on the Asset Turnover, Net Profit Margin, and Equity Multiplier. Significantly, a debt increment gives the firm ext Continue Reading...
College?) It's become a widely recognized fact. College is expensive, and saddles students with lifelong debts. Moreover, observation shows that people learn very little in college and that knowledge and talent in a field may be unrelated to the de Continue Reading...
Texas-Based Company Sysco is an institutional food provider, selling to restaurants, hospitals, hotels and schools. According to their latest annual report, they earned revenues of $44 billion and net income of $992 million. The company has been inv Continue Reading...
International Equity Markets Residential investment property performed better than all investments in the last decade. Australian bonds were the second best performing asset class returning 6.4% p.a. Australian shares were the third highest with 6.1 Continue Reading...
ExxonMobil Even though investment prospects vary radically across businesses and industries, one would anticipate the manner of assessing financial returns on investments to be properly even. In this case, Exxon Mobil has its investments not only in Continue Reading...
GBATT Income Statement Review GBATT has a relatively stable company. It saw revenues decline 4.4% and profits by 4.24% last year. Expenses dropped in lockstep with revenues, indicating that the company has good ability to respond to changes in the p Continue Reading...
Valuation - Leveraged Buyouts In definition, in accordance to Kaplan and Stromberg (2008), in a leveraged buyout, a corporation or firm that is acquired or possessed by a specialized investment corporation by means of a comparatively small fraction Continue Reading...
JC Penney & Kohl's The Cost The first thing when it comes to determining how JC Penney could manage to pay for Kohl's is to think about how much it would cost to do so, and where JC Penney stands in relation to that. As has been noted previousl Continue Reading...
The 1990s and 2000s saw tremendous growth in the CAT brand as its new line of compact construction equipment receives tremendous support in the market place (CAT, history, 2011). Caterpillar is currently one of the most recognized brand names in th Continue Reading...
Proctor & Gamble accounts show a number of different types of expenses. Expenses can be generally divided into two broad categories; operating expenses and capital expenses. Capital expenditure will usually be seen on the balance sheet, as a cap Continue Reading...
If asset bubbles can be leading indicators of recession, that begs the question what assets are the most important? Several studies have shown that housing prices are critical. They were important in Japan and in 2008 in the United States. Babecky Continue Reading...
CAPM There are several different models that can be used to help determine the cost of capital for a company. Each is based on a model, and can be understood not only in terms of its formula but also in terms of its underlying assumptions. These ass Continue Reading...
Approximately 19% of the short-term liabilities in the form of notes payable and other short-term debt. The long-term liabilities consist of long-term debt and other miscellaneous liabilities. The debt portion of this represents approximately 39% o Continue Reading...
Long-Term Financial Planning FedEx Corporation FedEx Corporation was established in 1971 and the company has four distinct business segments that include FedEx Express, FedEx Ground, FedEx Office and FedEx Freight. Over the years, the company has o Continue Reading...
The company's promotional literature emphasizes the synergistic effects of this corporate structure: "IAG combines the two leading airlines in the UK and Spain, enabling them to enhance their presence in the aviation market while retaining their ind Continue Reading...
Global Financial Strategy Critical assessment of the proposal to raise capital locally rather than in the UK In the analysis of the proposal of raising capital locally rather than in the UK, it is essential to consider four critical aspects: costs, Continue Reading...
Risk There are two kinds of risk that a company faces. Systematic risk is risk that is inherent in the economy. This risk is generated largely by external factors to the company, such that the company has little control over these factors. This type Continue Reading...
Capital Structure A project should not be evaluated in terms of capital structure. The financing of a project is a decision that is independent of the decision to undertake a project. This flows from the Modigliani and Miller Theorem where the choic Continue Reading...
Therefore, the specific amount of debt within the firm has a strong impact on the determining the accurate weighted cost of capital. Actually, the determination of a firm's WACC is dependent on the debt value together with the value of equity. Whil Continue Reading...
Because Ameritrade's Initial public offering was in March of 1997, the time series is to short for estimating beta (August 1997), as the provided data will give inaccurate results. That's why in order to estimate beta for Ameritrade correctly we can Continue Reading...
FedEx Corporation offers worldwide delivery services in the overnight and ground businesses, along with other related logistics services. The company operates around the world, utilizing either wholly-owned subsidiaries or service partners to gain ma Continue Reading...
Finance One difference between industries with high leverage and low leverage is a split between the need for fixed assets (high leverage) and a reliance on intellectual capital (low leverage). Airlines need planes, construction companies need equip Continue Reading...
Wal-Mart: Financial Statement Analysis WAL-MART FINANCIAL STATEMENT ANALYSIS Company Description Wal-Mart Stores Inc. (WMT) is a world largest grocery chain and retail stores. The company operates 8000 stores across three business segments which i Continue Reading...
Ryanair Introduction & Recent History Ryanair is a leading discount airline based in Dublin. The company is known for its cost leadership strategy that has included some attention-getting publicity stunt ideas, and some that the company has act Continue Reading...
The market structure of Turkey is quite different from that of the UK. The cultural composition of Turkey is not a guarantee of making proportional sales. The reasons for the low performance of the company's product could as well reverberate in Turk Continue Reading...
CAPM The first scenario represents a diversifiable risk. The rate of inflation has an effect on the whole economy, but the nature and direction of that effect is something that will be different for each firm. Some firms may suffer more than others Continue Reading...
Statement 3 Another important issue to consider in the contraction of debt is represented by the impact of this debt on the company stakeholders -- employees, business partners, the public, and most importantly, the share holders. The primary scop Continue Reading...
The success rates of this venture are increased as investors are willing to risk their money in the hope of increased gains. Otherwise put, shareholders "can accept downside risks because they fully share the upside as well" (Dynamic Equity, 2002). Continue Reading...
33% on the 2013s; 27.78% on the 2018s 16.67% on the 2028s and 22.2% on the 2038s. Using market value the weighted-average cost of debt is 6.798%. The weights are 35.42% on the 2013s; 28.39% on the 2018s; 16.14% on the 2028s and 20.03% on the 2038s. Continue Reading...
Corporate Finance East Coast Yachts I My time horizon is long-run. I would want a diversified portfolio, but can afford to take the risk of equities. So the first decision is to go with 100% equities. I am not interested in company stock at the mom Continue Reading...
