Application of Capital Structure‚ Costs of Capital for Multiple Division firms Case Analysis: Pioneer Petroleum Corporation (PPC).1 Submitted by: Joseph Donato N. Pangilinan‚ FICD Date Presented: April 12‚ 2012 Introduction: This landmark case seeks to break the risk-reward trade off involved in calculating Capital Cost. The object of the solution must be to minimize project risks while maximizing project opportunities available. We want a rate and a rating system that does not unnecessarily
Premium Weighted average cost of capital Finance Rate of return
Business Financing and the Capital Structure Explain the process of financial planning used to estimate asset investment requirements for a corporation. Explain the concept of working capital management. Identify and briefly describe several financial instruments that are used as marketable securities to park excess cash. As a business owner‚ it is important to know the value of your assets as they can be used as leverage for obtaining loans and can be used to estimate your ability to repay your
Premium Investment
| CS4264 E-Commerce: B2C Applications | Assignment 1: Amazon.com | Rachel Lin Peishi (U078952B) | Five Forces Analysis 1. Threat of New Entrants Threat of new entrants is low: The online books retailing industry has a high entry barrier. Newcomers will need high capital which includes website development costs‚ distribution channels establishment costs‚ branding costs and etc to startup. As such‚ the threat of new entrants is low. 2. Bargaining Power of Suppliers BP of
Premium E-book Amazon Kindle
and financing capital as well as focusing on the correct financial decisions. The main objective of this report is to examine the two major segments in finance which are capital structure decisions and financing sources. This report is broken down into 5 very specific areas of the 2 main segments‚ which are capital structure decisions and financing sources. The first section of this report touches upon the definitions of debt‚ equity as well as the definition of capital structure. The report also
Premium Finance Debt Capital structure
Describe briefly Intel’s current capital structure. Discuss whether in your view this capital structure is optimal for Intel‚ with particular emphasis on the pros and cons of Intel’s substantial cash holdings. Articulate and defend a “target” capital structure for Intel. Cee Capital Structure As shown in the financial income statement (Exhibit3)‚ Intel Corp. (INTC) has a capital structure consisting most of equity. Intel has very little debt in its capital structure and the cost of debt would have
Premium Stock Stock market Weighted average cost of capital
MBA 509 Recommended Chapter Questions These questions are the focus of what I am covering on the final exam. Understand the answers to these questions and should not be surprised by anything on the exam. Chapter 14: Capital Structure in a Perfect Market 14-5. Suppose Alpha Industries and Omega Technologies have identical assets that generate identical cash flows. Alpha Industries is an all-equity firm‚ with 10 million shares outstanding that trade for a price of$22 per share. Omega Technologies
Premium Stock market Stock Dividend
The optimal capital structure Is there such a thing? Is there an Optimal Capital Structure? • Miller and Modigliani: • 1. You cannot derive value from financing strategies. If you finance with debt in a world with taxes‚ then you might add value from interest payments tax shields • Question: • If this is true for everyone‚ then why do not find more debt financing in more companies‚ i.e you find little debt in technological companies Myers and the Pecking Order • Prof. Myers found the following
Premium Finance
no costs of financial distress or bankruptcy‚ what percentage of the firm’s capital structure would be financed by debt? 3 Exercise 3 The Holland Company expects perpetual EBIT of $4 mil. per year; the firm’s after-tax‚ all-equity discount rate (r0) is 15%; company is subject to the tax rate of 35%; the pre-tax cost of the firm’s debt capital is 10% p.a.‚ and the firm has $10 mil. of debt in its capital structure. What is Holland’s value? What is Holland’s cost of equity (re)? What
Premium Finance
Analysis of Industry This industry analysis will aid in discussing the industry in which Amazon.com will be located. Amazon.com is a part of the online retailing industry‚ which allows for consumers to purchase goods using the Internet and company websites. We will also determine how the company will compete in this industry. The online retail industry is affected by many trends in the general public. Some of these trends include‚ cultural trends‚ social trends‚ and technological trends. E-retail
Premium Retailing Online shopping Electronic commerce
retail industry. In recent years‚ Amazon has faced increased competition in the highly competitive online retail space as competitors invested heavily in their online storefronts and infrastructure. Positioned in a highly fragmented industry‚ Amazon must find solutions that can sustain its long term profitability and maintain its market share. To that end‚ Amazon should grow the Amazon Prime membership base and expand on its media and mobile offerings. While Amazon faces many issues in a rapidly
Premium Retailing Amazon Kindle Online shopping