"What is a working capital policy and why is it needed?" Working capital is a “measure of a company’s efficiency and its short term financial health” (Ivestopedia‚ 2008). To calculate a company’s working capital subtract its current liability from its current assets. Current assets include cash‚ accounts receivable‚ and inventory on hand. “Working Capital gives investors an idea of a company’s underlying operational efficiency” (Investopedia‚ 2008). A positive working capital ensures that a company
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Capital Punishment We are put on this world to experience life; however‚ if life is not valuable‚ what is valuable? Everyone has one life until the heart stops beating. Life is limited‚ the way which you personify your values depend on how you treat your life and the life of others. Capital punishment is a death sentence for a horrible crime. In Seventh Century B.C. ’s Draconian Code of Athens‚ the only punishment for all crimes was death ("Death Penalty Information Center"). In America‚ nearly
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did not take into consideration that as a global company with operations in countries that are hugely different from the U.S they needed a more sophisticated way to think about risk and the cost of capital around the world. besides‚‚ with AES’s international expansions‚ the model of capital budgeting was not supposed to be exported to projects overseas‚ since the same model became increasingly strained with the expansions in brazil and Argentina because hedging key exposures such as regulatory or
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CAPITAL PUNISHMENT SHOULD IT BE ABOLISHED? Capital punishment or the death penalty is a legal process whereby a person is put to death by the state as a punishment for a crime. The judicial decree that someone be punished in this manner is a death sentence‚ while the actual process of killing the person is an execution. Currently‚ 58 nations actively practise it‚ and 97 countries have abolished it. The real question that arises is whether it should be abolished or not. People have various
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Cons of capital punishment One advantage of having capital punishment is that it can serve as a deterrence. When people are aware of the harsh consequences of their actions‚ they would usually prevent such actions to avoid the subsequent punishment that would be carried out. The idea of capital punishment would make many think twice before a certain action such as murder and thus‚ capital punishment can help to decrease the number of crime rate. Another advantage of carrying out capital punishment
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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 not
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Introduction The context of this paper is to investigate the relationship between capital structure and firm performance on Malaysia plantations industries. According to Brealey and Myers (1988)‚ the capital structure will determine the survival of a business. Damodaran (2001) defined capital structure as the mix of debt and equity used to finance the operation of firms. Capital structure is closed link with corporate performance (Tian and Zeitun‚ 2007). Corporate performance can be measured by
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Working capital management is crucial to a company’s goals and planning function. Proper management of working capital can mean that difference between a company’s ability to carry out pre-planned strategic goals and becoming stagnant and losing its competitive edge. A company’s current assets typically end up being its most liquid assets‚ which makes them some of the most valuable when it comes to making corporate decisions. Working capital management is defined as a “managerial strategy focusing
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Chapter 6 Capital investment:regardless of whether they involve a tangible or intangiable asset. The incestment creates wealth if the discounted value of the future cash flow exceeds the up front cost. The problem is what to discount- stick to these rules: 1. Only cash flow is relevant. Net present value depends on future cash flows it’s the difference between cash received and cash paid out. Cash should be recorded only when they occur and not when work is undertaken or a liability is incurred
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articles written about the importance of working capital management regarding the profitability of a firm (Shin and Soenen‚ 1998; Deloof‚ 2003; Garcia-Tereul and Martinez- Solano‚ 2007; Raheman and Nasr‚ 2007; Mathuva‚ 2009; Dong and Su‚ 2010). Various authors have conducted researches in different countries on employing working capital in an optimal way in order to pursue profitability. But some authors still have different findings on how working capital management in terms of cash conversion cycle
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