Internal capital rationing Impositions of restrictions by a firm on the funds allocated for fresh investment is called internal capital rationing. This decision may be the result of a conservative policy pursued by a firm. Restriction may be imposed on divisional heads on the total amount that they can commit on new projects.Another internal restriction for capital budgeting decision may be imposed by a firm based on the need to generate a minimum rate of return. Under this criterion only projects
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Capital Rationing Capital rationing means that there is not sufficient finance (capital) available to support all the projects proposed in an organisation. In an ideal world any project which can earn a positive net present value or earn an internal rate of return greater than the cost of capital should be able to find a source of finance because there are rewards to the providers of capital. However‚ the world is not ideal and there may be restrictions on capital for any of the following reasons:
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htm Top management teams’ social capital in Taiwan The impact on firm value in an emerging economy Chaur-Shiuh Young Department of Accounting‚ National Chung Cheng University‚ Min-Hsiung‚ Taiwan‚ ROC Abstract Purpose – The paper aims to examine the contributions of top management teams’ (TMTs) social capital to the creation of business value. Design/methodology/approach – Least-squares regression is used to estimate the relationship between TMT social capital and Tobin’s Q‚ while controlling
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Working Capital Management and Firm ’s Profitability: An Optimal Cash Conversion Cycle Haitham Nobanee Department of Banking and Finance‚ The Hashemite University‚ P.O. Box 150459‚ Zarqa‚ 13133‚ Jordan. E-mail: nobanee@gmail.com Abstract The traditional link between the cash conversion cycle and the firm ’s profitability is that shortening the cash conversion cycle increases firm ’s profitability. On the other hand shortening the cash conversion cycle could harm the firm’s operations and reduces
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Rationing Healthcare: America ’s Best Bet John Curry Keller Graduate School Health Rights/Responsibilities HSM 542 Prof. Michelle Gomillion February 24‚ 2013 Abstract Rationing Healthcare: America ’s Best Bet Introduction. Within the last decade private insurance premiums have doubled‚ rising four times faster than wages. Insolvency of the current government assisted healthcare programs‚ Medicare and Medicaid‚ are on track to occur within the next eight years (Singer‚ 2009‚ para. 3)
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Mindy’s Sections Profitability BJB intends to apply a six sigma approach to improving profitability in the innovative CD changers. Using such tools provided through this approach will lead to major cost reduction and quality improvements that will result in an increase in profitability. The approach will involve measuring capability of processes to produce services and products that remain free of defect. Experts at BJB will analyze standard deviation‚ short term performance data‚ and critical
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The product as the first p something that is taken to the market to be noticed‚ sold‚ applied‚ or consumed; which is possible to satisfy a need or desire. Product can be a physical object‚ service‚ location‚ organization‚ or even an idea or thought (Moheb Ali et al‚ 1385: 195). The ultimate goal of organizations is to produce the products which are better and superior in one or more aspects compared with others to be welcomed by customers and make them to pay well for each product (Cutler‚ 179:1379)
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Impacts of Profitability and Financial Leverage on Firm’s Capital Structure By [Your Name] [Instructor’s Name] [Institution’s Name] [Date] Declaration While conducting the proposed research work‚ I‚ being a hard-working‚ innovative and conscientious researcher‚ come up with the factual severity of consequences allied with an act of plagiarising content from others’ work. Moreover‚ I do comprehend the rules and regulations my university encompasses against submitting a plagiarised document
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position is justified for the reason stated earlier. The adjustment for beta is: Since w* is negative‚ the result is a positive position in stocks with positive alphas and a negative position in stocks with negative alphas. The position in the index
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International Review of Business Research Papers Vol. 8. No.4. May 2012. Pp.157 – 176 Bank Profitability: The Case of Bangladesh Mohammad Abu Sayeed*‚ Piyadasa Edirisuriya** and Mohammad Hoque*** This study attempts to examine the impact of asset and liability management on the profitability of commercial banks in Bangladesh. Commercial banks are segmented into high profitable and low profitable and private and public banks. While applying Statistical Cost Accounting (SCA) methods
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