East and Southern Europe), India, parts of South America, Southwest U.S./northern Mexico and
Australia. The operating characteristics of STPPs are relatively well matched with the
intermediate and peak electricity load requirements in these regions.
Two types of collectors have been used in STPPs: parabolic trough and central receiver.
Electricity is generated by incorporating the solar collectors with a Rankine cycle power plant or
as an add-on to a natural gas combined cycle (referred to as an ISCCS).
After studying chapter 15, you should be able to: Explain how a firm creates value, and identify the key sources of value creation; define the overall “cost of capital” of the firm, calculate the costs of the individual components of a firm’s overall cost of capital: cost of debt, cost of preferred stock, and cost of equity;...
Strategic Corporate Finance provides a ‘‘real-world’’ application of the
principles of modern corporate finance, with a practical, investment
banking advisory perspective. Building on 15 years of corporate finance
advisory experience, this book serves to bridge the chronic gap between
corporate finance theory and practice. Topics range from weighted average
cost of capital, value-based management and M&A, to optimal capital
structure, risk management and dividend/buyback policy.
Strategic Corporate Finance provides a ‘‘real-world’’ application of the principles of modern corporate finance, with a practical, investment banking advisory perspective. Building on 15 years of corporate finance advisory experience, this book serves to bridge the chronic gap between corporate finance theory and practice. Topics range from weighted average cost of capital, value-based management and M&A, to optimal capital structure, risk management and dividend/buyback policy.
In a decentralized-decisions economy under uncertainty, the financial system can be seen as
the complex of institutions, infrastructure, and instruments that the society adopts to minimize the
costs of transacting promises under agents’ incomplete trust and limited information. Building on a
microeconomic, general equilibrium model that portrays such fundamental function of finance, this
study analytically shows that, in line with recent empirical evidence, the development of financial
infrastructure stimulates larger and more efficient capital industrial accumulation.
Chapter 1 introduces the concept of capital budgeting, and sets out the structure of the book.
The important points are:
Capital budgeting is the most significant financial activity of the firm.
Capital budgeting determines the core activities of the firm over a long term future.
Capital budgeting decisions must be made carefully and rationally.
One issue with using portfolio holdings to evaluate fund performance
is that the disclosed data reveal information about the major equity
positions at particular dates but do not indicate the exact purchase
and sale dates. As a result, the exact holding period of securities is
unknown. Furthermore, some funds may window-dress their portfolios
to hide their actual investment strategy from their investors or from
competing funds, as shown byMeier and Schaumburg (2004).
Abstract Most finance textbooks present the Weighted Average Cost of Capital WACC calculation as: WACC = Kd×(1-T)×D% + Ke×E% (1) Where Kd is the cost of debt before taxes, T is the tax rate, D% is the percentage of debt on total value, Ke is the cost of equity and E% is the percentage of equity on total value. All of them precise (but not with enough emphasis) that the values to calculate D% y E% are market values. Although they devote special space and thought to calculate Kd and Ke,
After studying this chapter in the lecture, you should be able to: Explain what the cost of capital represents and why it is so important, estimate the cost of equity using the dividend growth model approach and the security market line approach, estimate the cost of debt and the cost of preferred stock, understand when it is appropriate and to use the WACC as a measure of the firm's required rate of return,...
Chi phí vốn bình quân gia quyền, chi phí vốn, chi phí nợ sau thuế, cấu trúc vốn mục tiêu là những nội dung chính trong bài thuyết trình "Estimating the Cost of Capital". Hy vọng đây là tài liệu tham khảo hữu ích cho các bạn.
After studying this chapter, you should understand: How to determine the relevant cash flows for a proposed project, how to determine if a project is acceptable, how to set a bid price for a project, how to evaluate the equivalent annual cost of a project.
In this chapter, we examine some of the ways in which firms actually raise capital. After studying this chapter, you should understand: The venture capital market and its role in the financing of new, highrisk ventures; how securities are sold to the public and the role of investment banks in the process; initial public offerings and some of the costs of going public; how rights are issued to existing shareholders and how to value those rights.
Learning objectives of this chapter include: Know how to determine a firm’s cost of equity capital, know how to determine a firm’s cost of debt, know how to determine a firm’s overall cost of capital, understand pitfalls of overall cost of capital and how to manage them, understand the impact of an imputation tax system.
Chapter 13 - Leverage and capital structure. In this chapter you will understand the effect of financial leverage on cash flows and cost of equity, understand the impact of taxes and bankruptcy on capital structure choice, understand the basic components of bankruptcy.
The topic discussed in chapter 15 is raising capital. This chapter include objectives: Understand the venture capital market and its role in financing new businesses, understand how securities are sold to the public and the role of investment bankers, understand initial public offerings and the costs of going public.
Our study investigates how ultimate ownership structure and the corporate tax rate affect the equilibrium trade-off relation between manager ownership and debt in reducing agency costs. Considering the presence of the controlling shareholder, we find that higher corporate tax
rates strengthen the trade-off relation between manager ownership and debt while higher
control rights held by the controlling shareholder weaken it as well as the strengthening effect
of corporate tax rate.
Lecture Fundamental accounting principles - Chapter 25: Capital budgeting and managerial decisions. This chapter describe the importance of relevant costs for short-term decisions, evaluate short-term managerial decisions using relevant costs, analyze a capital investment project using break-even time, compute payback period and describe its use.
Analyzes the economic, political, and security issues associated with Korean unification and considers what the capital costs of unification would be under differing circumstances and assumptions The authors focus on the capital costs of doubling the North Korean GDP in a short period of time (four to five years) on the premise that
Chapter 15 explain the cost of capital and taxation issues in project evaluation. This chapter include objectives: Understand the concept of the cost of capital, understand the effect of risk on the cost of capital, understand how the cost of capital can be measured under the imputation tax system, understand why the cost of capital for a company is expressed as a weighted average of the costs of all of the company’s sources of capital,...