"What Is The Role Of Equity Accounts In Raising Capital" Essays and Research Papers

  • What Is The Role Of Equity Accounts In Raising Capital

    Raising Equity Capital When a private company decides to raise outside equity capital to fund there firm, they can turn several potential sources, these include Angel Investors, venture capital firms, institutional investors and corporate investors. Angel investors are individual investors who buy equity in small private firms (often friends of relatives) and are usually the first round of outside financing typically receiving a sizeable equity share. Venture Capital Firm (VCF) is a limited partnership...

    Corporate finance, Initial public offering, Private equity 1387  Words | 4  Pages

  • What is Private Equity?

    What is Private Equity? some of us reading this stories, the word private equity may seems a little bit unfamiliar. The definition of private equity by the famous Investopedia is as follows, “Equity capital that is not quoted on a public exchange.” Simple isn’t it? Example of private equity in Indonesia is the Orang Tua group. So now we understand about private equity, but what’s in it for us finance students? The answer is the Private Equity Firm who specializes in dealing about the private...

    Corporate finance, Debt, Investment 679  Words | 3  Pages

  • Raising Capital Accounting Essay

    Accounting 311 Raising capital through investments in bonds or borrowing directly from a lender by taking out a loan generates an increase of capital influx into a business. However, there are differences in the accounting treatment for each method that should be considered when deciding how best to increase cash assets. In this essay there will be a focus on how each approach affects the balance sheet and how each is recognized on the income statement. Along with these factors, this paper will...

    Asset, Balance sheet, Debt 1193  Words | 3  Pages

  • Private Equity and Venture Capital as a Way of Raising Finance: Case Study of Innocent Drinks.

    Title: Private equity and venture capital as a way of raising finance: case study of innocent drinks. Word count: 627 There are many ways of raising finance for the startup or expansion of a business. This paper will examine two ways of raising finance which are venture capital and private equity. They provide capital to a firm in exchange for shares in business. The differences between them are amount and time of raising finance. Innocent Drinks was chosen as a case study because innocent drinks...

    Corporate finance, Finance, Financial terminology 831  Words | 3  Pages

  • Debt vs Equity Financing

    Debt versus Equity Financing Paper ACC/400 Debt versus Equity Financing Equity along with debt financing, are types of financing. The financial strength should be every organization’s main concern when looking for capital. The more capital the organization has invested in its business the easier it is to obtain financing. An organization should increase stockholder capital for additional capital, if it has a high portion of debt to equity, so that it...

    Asset, Balance sheet, Bond 548  Words | 3  Pages

  • Capital Account Convertibility

    Until 1997, Asia attracted almost half of total capital inflow to developing countries. The economies of Southeast Asia in particular maintained high interest rates attractive to foreign investors looking for a high rate of return. As a result the region's economies received a large inflow of hot money and experienced a dramatic run-up in asset prices. At the same time, the regional economies of Thailand, Malaysia, Indonesia, the Philippines, Singapore, and South Korea experienced high growth rates...

    Currency, Economics, Foreign exchange market 1711  Words | 5  Pages

  • Explain what sources of finance are available for small to medium sized companies and explain why they sometimes face difficulties in raising finance

    Explain what sources of finance are available for small to medium sized companies and explain why they sometimes face difficulties in raising finance 1. Introduction The SME (Small and medium enterprise) sector is one of the crucial important contributor to economic growth in terms of Gross Domestic Product(GDP) and job creation worldwide(IFC,2010). According to OECD(2006), SMEs had created more than sixty percent of the job opportunities for OECD countries. That situation for developing counties...

    Corporate finance, Credit, Credit rating 2357  Words | 7  Pages

  • Capital Account Convertability

    What is ECBCB? Source of funds for corporates from abroad with advantage of lower rates of interest prevailing in the international financial markets longer maturity period for financing expansion of existing capacity as well as for fresh investment Defined as to include commercial loans [in the form of bank loans, buyers’ credit, suppliers’ credit, securitised instruments (e.g. floating rate notes and fixed rate bonds, CP)] availed from non-resident lenders with minimum average maturity ...

    Bank, Bond, Credit 810  Words | 3  Pages

  • The Cost of Equity Capital and the Capm

    will look at the three most common models used for estimating the rate of return for a given company; dividend growth, Capital Asset Pricing Model (CAPM) and Arbitrage Pricing Theory (APT). The board of directors for Apple Computer Corporation will receive this report, and based on the findings and analysis included, Apple will be given a recommendation as to the cost equity model they should implement to estimate their future rate of returns. This report will discuss the accuracy and ease...

    Arbitrage, Capital asset pricing model, Cash flow 1284  Words | 4  Pages

  • Venture Capital

    Venture capital (VC) is financial capital provided to early-stage, high-potential, high risk, growth startup companies. The venture capital fund makes money by owning equity in the companies it invests in, which usually have a novel technology or business model in high technology industries, such as biotechnology, IT, software, etc. The typical venture capital investment occurs after the seed funding round as growth funding round (also referred to as Series A round) in the interest of generating...

    Angel investor, Growth capital, History of private equity and venture capital 1625  Words | 5  Pages

  • equity bank case study

    Name Professor Course Date due Equity Bank Group Equity bank group is a financial institution based in Kenya, East Africa, offering a variety of financial services. This company was founded in 1984 as a minor institution, specializing in mortgage financing, which targeted the low income earners. Based on the fact that Kenya is a developing country characterized by majority of citizens earning less than adequate income, the target population acted as strength and thus contributed to the company’s...

    Bank, Central bank, Equity Bank Group 2015  Words | 6  Pages

  • Cost of Capital

    Cost of Capital Definition: cost of capital is the rate of return that a company must earn on its project investments to maintain its market value and attract funds. The cost of capital to a company is the minimum rate of return that is must earn on its investments in order to satisfy the various categories of investors, who have made investments in the form of shares , debentures and loans. The cost of capital in operational terms refers to the discount rate that would be used in determining the...

    Corporate finance, Costs, Finance 1468  Words | 5  Pages

  • Equity

    Equity In accounting and finance, equity is the residual value or interest of the most junior class of investors in assets, after all liabilities are paid; if liability exceeds assets, negative equity exists. In an accounting context, shareholders' equity (or stockholders' equity, shareholders' funds, shareholders' capital or similar terms) represents the remaining interest in the assets of a company, spread among individual shareholders of common or preferred stock; a negative shareholders' equity...

    Asset, Balance sheet, Equity 1597  Words | 3  Pages

  • Capital Account Convertibility in India

    forwarded to me by someone.. i found it very useful. Capital Account Convertibility India has been relentlessly moving on the path towards liberalization, opening up its markets and loosening its controls over many economic matters so as to integrate with the global economy. Despite the opposition to globalization from some quarters, India has been quite watchful in its approach to embracing global economy. The issue of capital account convertibility is one such where the nation has tread very...

    Bretton Woods system, Currency, Exchange rate 1568  Words | 5  Pages

  • Debt Versus Equity Financing Paper

    Debt Versus Equity Financing Paper Chaz McNeil ACC 400 October 9, 2014 Dr. Running head: DEBT VERSUS EQUITY FINANCING PAPER 1 DEBT VERSUS EQUITY FINANCING PAPER 4 Debt versus Equity Financing Paper In the accounting industry, financing remains an important concept, as many organizations are reliant on them for financial stability and longevity. Although there are a plethora of financing options and types to choose from, the focus of the work will revolve around debt and equity financing...

    Corporate finance, Corporation, Debt 725  Words | 3  Pages

  • Capital Account Convertibility

    Capital Account Convertibility. Should India adopt full convertibility? Capital Account Convertibility-or a floating exchange rate-is a feature of a nation's financial regime that centers around the ability to conduct transactions of local financial assets into foreign financial assets freely and at market determined exchange rates. It is sometimes referred to as Capital Asset Liberation or CAC. CAC is mostly a guideline to changes of ownership in foreign or domestic financial assets and liabilities...

    Asset, Central bank, Currency 1070  Words | 4  Pages

  • Capital Account Convertibility in India

    INTRODUCTION The objective of this paper is to discuss the highly intensified debate on the issue of Capital Account Convertibility (CAC) in India. There is no formal definition of Capital Account convertibility but the Tarapore committee set up in February 1997 gave a pragmatic working definition of CAC as “CAC refers to the freedom to convert local financial assets into foreign financial assets and vice versa at market determined rates of exchange. It is associated with changes of ownership...

    Bretton Woods system, Capital, Capital accumulation 1485  Words | 5  Pages

  • Raising Finance

    introduction to raising finance When a company is growing rapidly, for example when contemplating investment in capital equipment or an acquisition, its current financial resources may be inadequate. Few growing companies are able to finance their expansion plans from cash flow alone. They will therefore need to consider raising finance from other external sources. In addition, managers who are looking to buy-in to a business ("management buy-in" or "MBI") or buy-out (management buy-out" or "MBO")...

    Corporate finance, Debt, Economics 1299  Words | 5  Pages

  • Raising the Interest Rate

     Raising the Interest Rate Principles of Finance Introduction After years of declining interest rates, we are facing a dilemma; should the Federal government increase rates to contain inflation, or keep rates low to boost the US economy? Increases in consumption of oil, metals, materials, and food, both foreign and domestic, are increasing demand. Prices are rising on a global scale as demand increases. Additionally, the US is experiencing rising costs for healthcare and education. ...

    Finance, Interest rate, Investment 998  Words | 6  Pages

  • equity

    QUESTION 1. Equity has made the law more fair. Discuss Equity can be defined in a technical sense as a branch of law administered by the court of chancery before the passing of the Judicature Act (1873-1875) with a view of supplementing the common law rules. Equity developed because of the problems of the common law. The word 'equity' has a meaning of 'fairness' and this is the basis on which it operates. The existing law as at the time equity arose was common law, equity acted as a supplement...

    Common law, Equitable remedy, Equity 796  Words | 3  Pages

  • Equity: Tax and Adam Smith

    the eassy I will discuss the meaning and importance of equity in taxation since Adam Smith included it as one of the Canons of taxation. Equity is defined as “redistributive taxation induces allocative distortions by driving a wedge between the price the consumer pays and the price the producer receives” (Begg et al. 2005, p.219). There are two types of equity to be considered: the horizontal equity, and vertical equity. “The horizontal equity requires that people in similar situations should be...

    Income tax, Progressive tax, Public finance 2038  Words | 6  Pages

  • Shareholder's Equity

    Shareholder’s Equity Samantha Partida ACC 306 Ashley Harper December 10, 2012 Shareholder’s equity, also known as stockholder’s equity, is essentially the amount of equity directly from stock. The calculation to determine shareholder’s equity is quite simple as outlined further in this paper. In order to figure out where the numbers are located for this figure, just look for the shareholder’s equity financial statement. Comprehensive income also plays a role in equity. Shareholder’s equity is also...

    Balance sheet, Corporate finance, Dividend 1609  Words | 5  Pages

  • Recommendations on Indian Capital Market Reforms

    Recommendations on Capital Markets Governance & Investor Protection 1 Recommendations 1. CAPITAL MARKETS – CHALLENGES, OPPORTUNITIES FOR INNOVATION During the discussion on Capital Markets – Challenges, Opportunities for Innovation, the experts suggested as under: Expand the retail investor base - For a developed Capital market, there is need to expand the participation of retail investor and also enhance the investor morale and domestic allocation. Following are the suggested...

    Finance, Financial markets, Financial services 1375  Words | 6  Pages

  • What Is Account Planning

    Rosser Reeves were all outstanding planners. No one has a guaranteed formula when it comes to account planning. One thing that all these experts have in common is that they understand people. The easiest way to answer this question is simply to say that account planning is about having consumer focus and providing the client with the right advertising. In other words, the planner plays and important role in creating a deeper and innate understanding of human nature or behavior, in which we call insight...

    Advertising, Advertising campaign, Advertising campaigns 1368  Words | 5  Pages

  • Role of Bank Capital

    Introduction The main aim of this report is to identify the key roles played by bank capital in the banking business. This report briefly outlines the main functions of bank capital and takes a brief look at the benefits of bank capital to the bank and the banking industry. It is hoped that from reading this paper a general understanding of the roles of bank capital in the banking business can be gained. Bank Capital A bank's capital also known as equity is the margin by which creditors are covered if the...

    Bank, Credit risk, Economics 1381  Words | 4  Pages

  • CAPITAL STRUCTURE

    Capital structure describes how a corporation has organized its capital—how it obtains the financial resources with which it operates its business. Businesses adopt various capital structures to meet both internal needs for capital and external requirements for returns on shareholders investments. As shown on its balance sheet, a company's capitalization is constructed from three basic blocks: Long-term debt. By standard accounting definition, long-term debt includes obligations that are...

    Corporate finance, Debt, Finance 1599  Words | 5  Pages

  • Sources of Capital: Owner's Equity

    Owner’s Equity as a Source of Capital Sources of capital come in two forms: debt and equity. Obtaining permanent capital through equity is the capital supplied by the entity’s owners. It is the owner’s share in the financing of all the assets. Richard Scott, United States accounting professor wrote, “one of the most deep-seated, and incontrovertible concepts embraced by accounting theory today is that of owner’s equity.” Through analysis of the case, we found this to be true. There are different...

    Corporate finance, Debt, Equity securities 1221  Words | 6  Pages

  • Global Capital Markets

    1. Executive Summary This report will evaluate the advantages and disadvantages of raising long term debt and equity capital via the global capital markets as opposed to the more traditional methods employed by the company of raising funds through the domestic markets. 2. Global Capital Revenue v Domestic Raising capital in the global market place has a number of advantages over raising capital solely in the domestic market place. The first advantage is that by going global it will open...

    Bond, Bond market, Euro 2074  Words | 7  Pages

  • equity

    The word ‘equity’ can be seen to have a wide range of meanings- to many it is a synonym for ‘fairness’ or justice’. Those within the legal community recognise equity as the body of rules developed and applied by the Court of Chancery; a court previously presided over by the Lord Chancellor with rules developed under his authority. The law of equity developed due to the inflexibility of the common law. Before the development of equity, The law was rigid (which was often cited as a weakness) for example...

    Common law, Court, English law 2568  Words | 7  Pages

  • Factors determining Capital Structure

    Capital Structure: The most important function of Financial Management is to make decisions about the capital structure of firm. Capital structure refers to the make up a firm’s capitalization. It represents the mix of different sources of long term funds in the total capitalization of the company like equity shares, preference shares, retained earnings, long-term loans etc. In other words it can be precisely told as financing plan of the company. Capital is required to finance investments in plant...

    Capital structure, Cash flow, Corporate finance 1612  Words | 5  Pages

  • Business Financing and the Capital Structure

    Assignment 2: Business Financing and the Capital Structure Principles of Finance Finance 100 December 12, 2013 Business Financing and the Capital Structure Raising Business Capital As a financial advisor to this business there are two options to consider for raising business capital, equity financing and debt financing. The details, advantages, and disadvantages of both options will be provided. Also information about raising capital by selecting an investment banker...

    Bond, Corporate finance, Debt 1466  Words | 5  Pages

  • Accounts

    Why are accounts important To begin by why accounts are important, a person should first know what accounts actually mean. Accounts are financial records of an organization that register all financial transactions, and must be kept at its principal office or place of business. The purpose of these records is to enable anyone to appraise the organization's current financial position with reasonable accuracy. Firms present their annual accounts in two main parts: the balance sheet, and the income...

    Annual report, Balance sheet, Financial statements 1928  Words | 6  Pages

  • Role of Human Capital in Economic Development

    Introduction Our research topic is to analyze the relationship between human capital and economic growth. Economic growths important determinant are physical capital, labor and human capital. But from the recent trend of world economic growth, we found that human capital is playing a key role by taking the place of material capital and labor. Human capital is intimately related to growth as it increases the nation’s capacity to produce goods and services. It also creates more job opportunities...

    Capital, Capital accumulation, Economic development 2134  Words | 7  Pages

  • Overtrading: Finance and Capital

    WHAT IS OVERTRADING? Overtrading means a situation of operating a business with insufficient long term capital to support the current volume of business. A situation in which a company is growing its sales faster than it can finance them. Overtrading often occurs when companies expand their own operations too quickly aggressively. Overtrading can arise even if the organization is trading profitably. Over-expansion of business is one of the main reasons for overtrading and therefore overtrading...

    Corporate finance, Debt, Finance 737  Words | 3  Pages

  • Role of Banks & Capital Markets in Resource Allocation

    The Role of Banks and Capital Markets in resource allocation between surplus and deficit units in an economy. By: Adetokunbo Olu. Aofolaju Introduction The issue of how scarce societal resource should be apportioned to different uses has always remained the central focus of economics. Given that the wants of a society are insatiable, the policy thrust of managers of any economy is establishing an appropriate framework for ensuring the deployment of resources to areas of needs that ultimately...

    Bank, Economics, Finance 2387  Words | 7  Pages

  • Debt vs Equity Financing

    Debt VS Equity Financing ACC/400 September 2013 Debt VS Equity Financing Most businesses are use financing for one reason or another. Whether it be startup, day to day operations, or financial stability financing is a fundamental part of operations. This summary will address what debt and equity financing are and how they are beneficial in business and everyday life. The summary will also explain which method is most beneficial in business operations. By...

    Capital structure, Corporate finance, Debt 954  Words | 3  Pages

  • What Is Organizational Capital

    Kindley, M. (2001) What is Organizational Capital? – Interview to Erik Brynjolfsson – CIO Insight The recent bursting of the internet bubble, together with its unsustainable and sometimes bizarre business models, has resurrected the debate on the degree to which IT investments contribute to productivity growth. While economist Erik Brynjolfsson is a firm believer in the long-term contribution of technology to productivity growth, he also believes the answer isn't as easy as buying a few computers...

    Balance sheet, Capital, Capital accumulation 2786  Words | 7  Pages

  • Accounts

    Rs 8 Give two examples of ‘Capital receipts’. Give two circumstances in which sacrificing ratio may be applied (1) (1) (1). (1) (1) Show how you would deal with the following items in the final accounts of a club: (3) Debit credit Prize fund Prize fund Investments 1,20,000 Income from Prize fund Investments Prizes awarded 9000 Q7. 1,20,000 12000 A,B and C are partners sharing profits and losses in the ratio of 1 : 2: 3. They have omitted interest on capital @ 8% p.a. for two years ended...

    Asset, Balance sheet, Depreciation 1757  Words | 7  Pages

  • Recent Changes in Indian Capital Markets

    changes in Indian Capital markets Introduction A capital market is a market for securities (debt or equity), where business enterprises (companies) and governments can raise long-term funds. It is defined as a market in which money is provided for periods longer than a year, as the raising of short-term funds takes place on other markets (e.g., the money market). The capital market includes the stock market (equity securities) and the bond market (debt). Money markets and capital markets are parts...

    Bond, Capital market, Financial markets 1701  Words | 5  Pages

  • Debt vs Equity Financing

    Debt Versus Equity Financing ACC/400 May 14, 2012 Debt versus Equity Financing Debt versus equity financing is a critical element in the process of managing a business and also the most challenging decision facing managers who require capital to fund their business operations (Schroeder, Clark, & Cathey, 2005). Debt and equity are the two main sources of capital available to businesses, and each offers both advantages and disadvantages. This paper will compare and contrast lease...

    Corporate finance, Debt, Economics 618  Words | 3  Pages

  • Owners' Equity Paper

    OWNERS' EQUITY PAPER Owners' Equity Paper University of Phoenix ACC 423 January 21, 2013 Owners' Equity Paper Stockholders’ equity, shareholders’ equity, and corporate capital all define the owners’ equity in a corporation. The stockholder’s equity normally has three categories that appear. The three categories are: capital stock, additional paid-in capital, and retained earnings. Capital stock and additional paid-in capital makes up and represents the contributed (paid-in) capital. Earned...

    Corporate finance, Finance, Investment 746  Words | 3  Pages

  • Case 1-1 E-Centives, Inc.—Raising Capital in Switzerland

    E-Centives, Inc.—Raising Capital in Switzerland 1. Possible factors (from Exhibit 1-7) relevant in e-centives decision to raise capital and list on the Swiss Exchange s New Market: a. Ease of raising capital (point 3). The Swiss Exchange s New Market has simple listing requirements designed to appeal to small companies. The contrast with the complex, detailed listing and reporting requirements in the United States is striking. b. Availability of capital (point 4). Switzerland...

    Capital market, Finance, Financial statements 884  Words | 3  Pages

  • Role of Qib in Indian Capital Markets

    ROLE OF QIB (QUALIFIED INSTITUTIONAL BUYER) IN THE INDIAN CAPITAL MARKET FOR THE LAST 6 YEARS A] Who are the Qualified Institutional Buyers? Qualified Institutional Buyers (QIBs), as defined under sub-clause (v) of clause 2.2.2B of the SEBI (DIP) Guidelines, can be one of the following: 1. A Public Financial Institution as defined in Section 4-A of the Companies Act. 2. A Bank 3. FII (Foreign Institutional Investors) that are registered with SEBI 4. Development Financial Institutional,...

    Initial public offering, Institutional investor, Investment 2338  Words | 7  Pages

  • Role of Cfo

    Past Role of CFO The past role of Chief Financial Officer(CFO) revolved around the following key core areas  Performing the role of the operating manager of finance function, controlling compliance and statutory reporting in publicly traded companies.  Counselling role or Advisory role and help in bringing about orderly and control centric growth in companies.  Performing the treasury duties which involve decision making on how to invest the company’s money, taking into consideration risk...

    Economics, Finance, Financial services 1282  Words | 4  Pages

  • Role of Capital Market in the Development of a Nation

    Role of capital market in the context of development of nation What is Capital Market? Institutional arrangements for facilitating the borrowing and lending of long term funds. INVESTORS IN CAPITAL MARKET Role of capital market Capital Formation Economic Growth Development of backward area Generates Employment Long Term Capital to Industrial Sector Generation of Foreign Capital Developing Role of Financial Institution Investment Opportunities Capital Formation Rate of capital...

    401  Words | 3  Pages

  • Debt/Equity Ratio

    Debt/Equity Ratio What Does Debt/Equity Ratio Mean? A measure of a company's financial leverage calculated by dividing its total liabilities by its stockholders' equity; it indicates what proportion of equity and debt the company is using to finance its assets. http://financial-dictionary.thefreedictionary.com/debt%2Fequity+ratio 'Debt/Equity Ratio' A high debt/equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings...

    Asset, Balance sheet, Debt 875  Words | 3  Pages

  • What Factors Determine a Firm’s Financing Choice?

    two categories. The first of these is concerned with spending – what spending decisions should be made in order to suffice a particular organisation’s future goals, which might be expressed in terms of profits, success in competition, new product development, growth and so forth. However, in order to realise these visions, each company necessarily needs to make decisions falling into the second category which is concerned with raising money for its spending. Spending financing represents an important...

    Corporate finance, Debt, Decision making 1898  Words | 5  Pages

  • More Retail Participation Is Needed in Indian Equity Market

    single objective of enhancing retail investors’ participation in the capital markets, either directly or indirectly, by reducing costs, expanding reach, increasing accountability of manufacturers and advisers and ultimately increasing customer value proposition. To begin with, the revised Direct Taxes Code (DTC) Bill will play a vital role in encouraging retail investment in the stock market by allowing tax exemption on long-term capital gains on the sale of listed shares. The individuals who fall in...

    Capital gain, Financial services, Security 923  Words | 3  Pages

  • The Role of Small and Medium Equity Investement Scheme in Financing Sme's

    The Role of Small and Medium Industries Equity Investment Scheme (SMIEIS) in financing Small-Scale Enterprises in Nigeria BACKGROUND TO THE STUDY Interest in the role of Small-Scale Enterprises in the development process continues to be in the forefront of policy debates in developing countries. The advantages claimed for Small-Scale Enterprises are various, including: the encouragement of entrepreneurship; the greater likelihood that Small-Scale Enterprises will utilise labour intensive technologies...

    Council of Smaller Enterprises, Finance, Investment 1609  Words | 5  Pages

  • Equity and Debt Financing

    Between debt and equity Financing Debt Financing Equity Financing Definition Debt financing refers to any borrowed money which theentrepreneur must pay back to the lending institution. It can come in the form of a loan, line of credit, bond, or even an IOU. An interest rate and other terms apply. Equity financing is money lent in exchange for ownership in a company.New businesses can use equity financing for their startups or when they need to raise additional equity capital to offset existing...

    Bond, Credit, Debt 878  Words | 3  Pages

  • Raising Capital Theory and Evidence

    convertible debt. Stock markets react to such news by adjusting the market value of the company either upwards or downwards. to take account of the newly announced information. In 1986, Clifford W. Smith Jr., took note of some very important patterns about the stock market’s reactions security offerings and explored them through his article entitled Raising Capital: Theory and Evidence. His primary finding was that, on average, announcements either lead to reductions in the market valuations of...

    Corporate finance, Finance, Initial public offering 3291  Words | 10  Pages

  • Toyota Cost of Capital

    Toyota Cost of Capital Case: General Methodology We used the following framework to do the calculations for all the companies. Afterwards we will discuss their implications: To estimate the cost of equity (RE) we used the following CAPM model: RE = RF + βE (RM-RF) whereby, Market Premium = RM – RF = 6% (Given in case) RM = Return for S & P 500 (a market return that takes into account systematic risk associated with the market place where our company is traded, NYSE) Risk Free Rate...

    Balance sheet, Business cycle, Capital 1434  Words | 5  Pages

  • Equity Valuation

    cash flow models: Dividend discount Free cash flow to the firm Residual income Multiples-based valuation: Price-earnings Value-EBITDA Value-EBIT Value-Sales Price-Book value Equity valuation In conjunction with the valuation of Coles Group, contained in “Excel03 Equity valuation” Real options valuation Equity markets price shares above the present value of expected future cash flows, due to the presence of embedded options not captured by DCF analysis Real options valuation is introduced...

    Cash flow, Corporate finance, Discounted cash flow 1175  Words | 7  Pages

  • Nike Cost of Capital

    1. What is the WACC and why is it important to estimate a firm’s cost of capital? Do you agree with Joanna Cohen’s WACC calculation? Why or why not? WACC- The weighted average cost of capital is the rate (percentage) that a company has to pay to its creditors and shareholders to finance assets. It is the “cost” of their worth. Companies raise money from many different types of securities and loans and the various required returns are what make up the cost of capital. WACC is used to decide if an...

    Arithmetic mean, Average, Finance 935  Words | 4  Pages

  • Role of International Finance Institutions

    ROLE OF INTERNATIONAL FINANCE INSTITUTIONS BB0030 2013 LOCHIN BAWEJA BBA (6TH SEMESTER) Roll No. - 521067514 Center Code - 01665 01665 Bachelor of Business Administration-BBA Semester 6 BB0030 – Role of International Finance Institutions- 2 Credits Assignment Set- 2 (30 Marks) [Each question carries 10 Marks. Answer all the questions...

    10000000, Developing country, Development 2330  Words | 7  Pages

  • Discuss the Role of Venture Capital, Past, Present and Future - for the Growth of Indian Economy.

    Discuss the role of Venture Capital, Past, Present and Future - for the growth of Indian Economy. According to the latest data available with SEBI, Venture Capital Funds (VCFs) and Foreign Venture Capital Investors (FVCI) have reduced their investment in real estate companies during the June-2008 quarter. However, the overall investment by VCFs and FVCI rose a modest 2.2 per cent to Rs 32,379 crore against March quarter figure of Rs 31,682 crore. While flows into real estate fell nearly 14 per...

    Corporate finance, Finance, Financial terminology 1427  Words | 4  Pages

  • Accounts Receivable and Debt-to-equity Ratio

    selling the Machine-Tech division. This sparks up interest to the users as to find out the reason behind it. It currently has a debt-to-equity ratio of 0.66. But, the Board of Directors has decided to raise a significant amount of debt to finance the construction of a new manufacturing plant for the Solar-Electro division. This would increase the debt-to-equity ratio, which could generate concerns to investors. It is sensible to assess a low acceptable audit risk when the external users rely greatly...

    Accounting software, Accounts payable, Accounts receivable 1251  Words | 6  Pages

  • Financing Working Capital

    Financing Working Capital The financing of working capital is of utmost important. What portion of current assets should be financed by current liabilities? What portion should be financed by long-term resources? Decisions on these questions will determine the financing mix. Approaches to financing mix: There are 3 basic approaches to determine an appropriate financing mix. They are a. Hedging or Matching approach. b. Conservative approach. c. Trade-off between the above two...

    Corporate finance, Debt, Economics 889  Words | 4  Pages

  • relationship between factors of capital structure

    INTRODUCTION 1.0 CHAPTER OVERVIEW Capital plays an important role in business. Every business enterprise, whether big, medium or small, manufacturing, services or industrial, needs capital to carry on its operations smoothly and to achieve its targets organization’s objective. Capital Structure means how an organization or company manage their capital or obtain financial resources to manage their business well. Business adopts different types of capital structures in order to meet the internal...

    Capital structure, Corporate finance, Economics 1811  Words | 7  Pages

  • Cost of Capital

    Cost of Capital Firms need to make capital investment i.e., purchasing fixed assets such as factories, machineries, equipment, etc. After deciding what capital investments to make, they need to decide on the financing – sources of capital. The sources: Long-Term Debt, Common Stock, Preferred Stock and Retained Earnings. Then they need to find the cost of obtaining each source of financing today (not historical). Cost of Capital - The rate of return that a firm must earn on its investment...

    Finance, Internal rate of return, Investment 1595  Words | 6  Pages

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