Capital structure decisions

Chapter 16 - Capital structure decisions: The basics. This chapter presents the following content: Overview and preview of capital structure effects; business versus financial risk; the impact of debt on returns; capital structure theory, evidence, and implications for managers; example: choosing the optimal structure.

19p abcxyz123_04 30-03-2020 14 2   Download

This chapter presents the following content: Overview and preview of capital structure effects; business versus financial risk; the impact of debt on returns; capital structure theory, evidence, and implications for managers; example: choosing the optimal structure.

77p nomoney12 04-05-2017 26 1   Download

(bq) part 2 book "financial management for decision makers" has contents: the cost of capital and the capital structure decision, making distributions to shareholders, managing working capital, measuring and managing for shareholder value, business mergers and share valuation.

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The study results have implications for investors and for managers in making decisions about optimal capital structure. The results are a basis for investors to predict the health of the companies in which they intend to invest, or delisted companies that have still the capability of developing.

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The purpose of this study is to examine the impact of capital structure choice on firm’s financial performance of delisted companies on the stock market. Based on the data collected from 80 companies delisted from Vietnam stock markets (HNX and HOSE) in the period from 2012 to 2015, using quantitative research methods, we find a correlation between the capital structure and the financial performance of the firms. The study results have some implications for investors and managers in making decisions to optimize their financial performance.

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Since MNCs commonly invest in long-term projects, they rely heavily on long-term financing. Once the capital structure decision has been made, the MNC must consider the possible sources of equity or debt, and the costs and risks associated with each source. Many MNCs obtain equity funding in their home country, and engage in debt financing in foreign countries.

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The connection between the capital structure decision and the value of the company was established in Chapter 4 with respect to financial risk. In this chapter, complexities are examined, including taxes, financial distress, and agency issues.

23p allbymyself_10 03-03-2016 48 3   Download

This paper investigates the role of firms’ board size on capital structure decisions in an oil-based economy. Using a sample of 121 listed firms in Saudi capital Market, over the 2009-2016 period, we find a strong negative linkage between board size and debt choice. Our findings suggest that strong corporate governance practice enforce the usage of lower debt financing to promote firms’ performance. This finding provides important implications for investors and policymakers.

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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.

13p muaxuan102 21-02-2013 57 19   Download

(bq) part 2 book "corporate finance and investment" has contents: returning value to shareholders - the dividend decision, capital structure and the required return, does capital structure really matter, acquisitions and restructuring, managing currency risk,...and other contents.

453p bautroibinhyen23 02-04-2017 45 6   Download

the book an emphasis on core financial principles to elevate individuals’ financial decision making. using the unifying valuation framework based on the law of one price, top researchers jonathan berk and peter demarzo have set the new canon for corporate finance textbooks.

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(bq) part 2 book "financial management - concepts and applications" has contents: assessing the cost of capital - what return investors require; understanding financing and payout decisions; designing an optimal capital structure; measuring and creating value,... and other contents.

161p bautroibinhyen27 11-05-2017 21 4   Download

(bq) part 2 book "applied corporate finance" has contents: capital structure - sell it off; the rocky marriage of risk and return; capital budgeting decisions - the end of the roads meets the beginning of another, this is so wacc!

177p bautroibinhyen21 14-03-2017 37 1   Download

(bq) part 2 book "corporate finance - a focused approach" has contents: the cost of capital, the basics of capital budgeting - evaluating cash flows, cash flow estimation and risk analysis, financial planning and forecasting financial statements, financial statements, capital structure decisions

432p bautroibinhyen23 02-04-2017 18 1   Download

Chapter 16, capital structure policy. After studying this chapter you will be able to: Explain how financial leverage affects earnings per share (EPS) and return on equity (ROE), compute the degree of financial leverage, define and compute the indifference earnings before interest and taxes (EBIT) and explain its importance in selecting between alternative financing opportunities, define and explain the term homemade leverage, explain why determining the optimal capital structure is important,...

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This study examines the impact of board structure on financial leverage decisions, as measured by the ratio of total debt to total assets, of nonfinancial firms listed on the Ho Chi Minh City Stock Exchange. Based on a dataset of 1,592 observations collected from 199 firms for the period from 2012 to 2019, the analysis shows a correlation between board characteristics and a firm’s financial leverage.

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The role of inancial executives in any business has expanded signiicantly in recent years as companies become more accountable to their stakeholders and regulators. Combine this increase in accountability with the increasing sophistication of technology, risk management, inancial analysis, and inancial records processing, and we see that the responsibilities of inancial executives in any organization have expanded signiicantly. our goal with The Complete CFO Handbook is to provide inancial executives with the background and tools for managing a company’s inancial functions.

859p huynhcongdanh 17-09-2012 102 36   Download

Chapter 17 Capital Structure Decisions: Extensions a. MM Proposition I states the relationship between leverage and firm value. Proposition I without taxes is V = EBIT/rsU. Since both EBIT and rsU are constant, firm value is also constant and capital structure is irrelevant. With corporate taxes, Proposition I becomes V = Vu + TD.

25p summerflora 27-10-2010 93 27   Download

Chapter 16 Capital Structure Decisions: The Basics a. Capital structure is the manner in which a firm’s assets are financed; that is, the righthand side of the balance sheet. Capital structure is normally expressed as the percentage of each type of capital used by the firm--debt, preferred stock, and common equity.

19p summerflora 27-10-2010 75 25   Download

Residential leases are regulated by provincial legislation. In some cases, the applicable legislation will override the terms of the lease agreement, regardless of the intention of the parties. In some provinces, the ability of the landlord to increase residential rents is limited by provincial regulation. Financing Most real estate !nancing is arranged through institutional lenders such as banks, trust companies, pension funds, credit unions and insurance companies.

21p quaivatxanh 01-12-2012 58 4   Download