This chapter introduces the basic elements of short-term financial decisions. First, we discuss the short-term operating activities of the firm. We then identify some alternative short-term financial policies. Finally, we outline the basic elements in a short-term fi nancial plan and describe short-term financing instruments.
After studying chapter 11, you should be able to: Understand the sources and types of spontaneous financing, calculate the annual cost of trade credit when trade discounts are forgone, explain what is meant by “stretching payables” and understand its potential drawbacks, describe the various types of negotiated (or external) short-term financing,...
Chapter 10 - Sources of long-term finance: Equity. This chapter include objectives: Outline the characteristics of ordinary shares, explain the advantages and disadvantages of equity as a source of finance, outline the main characteristics of preference shares, outline the main sources of private equity in the Australian market,…
Chapter 11 - Sources of long-term finance: Debt. In this chapter, you will learn: Explain the general characteristics of long-term debt, identify and explain the features of the main types of long-term loans, identify and explain the features of the main types of marketable long-term debt securities,...
Bài giảng Management theory and practice Financial: Chương 17 với các nội dung chính Cash conversion cycle; Alternative net operating working capital policies; Cash budget; Short-term financing policies... Cùng tìm hiểu và tham khảo nội dung thông tin tài liệu.
Chapter 11 - Short-term financing. After studying chapter 11, you should be able to: Understand the sources and types of spontaneous financing, calculate the annual cost of trade credit when trade discounts are forgone, explain what is meant by “stretching payables” and understand its potential drawbacks, describe the various types of negotiated (or external) short-term financing,...
In chapter 20, we examine the major long-term securities issued by firms to provide for their long-term financing needs – long-term debt (bonds), preferred stock, and common stock – and evaluate their features. Also, in the Appendix to this chapter we analyze the potential profitability of a company refunding (replacing) an existing bond issue with a new one.
This book has been written for people whose first language is not English, and who need to use
English in the context of banking and finance. It covers language useful for working in retail
banking, company finance departments and other situations involving financial transactions.
There is a strong focus on the language needed to communicate on financial topics, discuss
financial problems and plan projects. It does not cover rarely-used terms, or academic terms used
by economists. All the language in the book is intended to be accessible to intermediate level
students and above....
Adjusted present value (APV) The net present value analysis of an asset if financed solely by equity (present value of un-levered cash flows), plus the present value of any financing decisions (levered cash flows). In other words, the various tax shields provided by the deductibility of interest and the benefits of other investment tax credits are calculated separately. This analysis is often used for highly leveraged transactions such as a leverage buy-out.
Are you interested in real estate finance? Financing real estate is essential for most buyers; this is true for both residential and commercial properties. While the price of property can fluctuate most simply do not have the capital on hand to purchase in whole, or they do not want to make that large an investment all at once. Financing lets individuals and companies purchase property while spreading payment out over the long term.
The teaching and the practicing of corporate finance are more challenging and exciting
than ever before. The last decade has seen fundamental changes in financial markets and
financial instruments. In the early years of the 21st century, we still see announcements in
the financial press about such matters as takeovers, junk bonds, financial restructuring, initial
public offerings, bankruptcy, and derivatives. In addition, there is the new recognition
of “real” options (Chapters 21 and 22), private equity and venture capital (Chapter 19), and
the disappearing dividend (Chapter 18).
• Permanent Assets (those held 1 year)
– should be financed with permanent and
spontaneous sources of financing.
• Temporary Assets (those held
• Permanent Financing
– intermediate-term loans, long-term debt,
preferred stock, common stock
• Spontaneous Financing
– accounts payable that arise spontaneously
in day-to-day operations (trade credit,
wages payable, accrued interest and taxes)
• Short-term financing
– unsecured bank loans, commercial paper,
loans secured by A/R or inventory...
Most discussions of corporate financing policy focus on long-term
liabilities such as common stock, preferred stock, debentures,
loans, and leases. Yet trade credit—credit extended by a seller
who allows delayed payment for its products—represents a substantial component of both corporate liabilities and assets, especially in the
case of middle-market companies. For the 3,350 non-financial Nasdaq firms
covered by COMPUSTAT, accounts receivable amounted to 19% of corporate
assets, and accounts payable were 26% of corporate liabilities, at the end of 1992.
AN OVERVIEW OF CORPORATE FINANCING
We now begin our analysis of long-term financing decisions—an undertaking we will not complete until Chapter 26. This chapter provides an introduction to corporate financing.
McGraw Hill Fundamentals Of Corporate Finance III presentations on Introduction to Corporate Finance, Financial Statements and Long−Term Financial Planning, Valuation of Future Cash Flows, Capital Budgeting, Risk and Return, Cost of Capital and Long−Term Financial Policy, Short−Term Financial Planning and Management, Topics in Corporate Finance.
The term "economic globalization" has been discussed extensively in the popular
press, by business executives and by policy makers all over the world. While aca-
demic economists have made some excellent contributions to specific, technical
aspects of economic globalization, there appears to be a need for economists to
discuss the broader aspects of the issue in a more accessible manner. Failing this,
the general debate will be informed only by the writings of non-economists.
This paper presents a theoretical analysis of the relative use of general state
subsidies (tax finance) and tuition (user charge finance) in the state financing of higher
education. State universities across U.S. states are very different among themselves
In this study, we consider only the State Regime in which the state government
decides the user charge, head tax, and expenditure, taking the minimum ability of
students as given and the state university simply is treated as a part of government.
The Progress Microfinance investment by the EIB is part of EIB Group’s long term financing role
seeking to increase value added and catalyse funds in support of small companies. Progress
Microfinance illustrates the enhanced cooperation between the EU and the EIB Group through
innovative risk sharing structures with subordinated capital from the European Union, allowing
higher leverage on the Community budget and subsequently greater market impact and providing
value added to a still emerging market through more effective and efficient use of scarce
Mathematical Finance Introduction to continuous time Financial Market models
Dr. Christian-Oliver Ewald
School of Economics and Finance University of St.Andrews
Electronic copy of this paper is available at: http://ssrn.com/abstract=976593
.Abstract These are my Lecture Notes for a course in Continuous Time Finance which I taught in the Summer term 2003 at the University of Kaiserslautern. I am aware that the notes are not yet free of error and the manuscrip needs further improvement. I am happy about any comment on the notes. Please send your comments via e-mail to firstname.lastname@example.org.
Additional efforts are underway to further increase the attractiveness of capital market
investment in Brazil. The income tax exemption was extended to foreign investors’
investments in long term corporate bonds and infrastructure bonds.
The private sector is also
keen on this policy agenda. The private capital markets association (Anbima) launched a
“New Fixed Income Market” project to facilitate long-term financing operation.