Solution 1: (i) P0 = D1 Ke - g CA – IPC TEST CAPITAL STRUCTURE = 3.50 (1.06) 0.15 – 0.06 = `41.22 (ii) Ke = D1 + g P0 0.15 = 3.50 (1 + g) + g 50 7.50 = 3.50 + 3.50g + 50g g= 4 = 7.48% 53.5 Solution 2: (i) Determination of EPS at EBIT level of `22‚00‚000 Financing Plan (a) (b) Equity Shares (`) Debentures (`) Pref. EBIT 22‚00‚000 22‚00‚000 Less: Interest (16‚000) (1‚21‚000) Taxable Income 21‚84‚000 20‚79‚000 Less: Tax @ 30% (6‚55‚200) (6‚23‚700) EAT 15‚28‚800 14‚55‚300 Less: Dividend on Pref
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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
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[pic] [pic] • CAPITAL MARKET AND ITS TYPES • PUBLIC ISSUE • PRIVILEGED SUBSCRIPTION • REGULATION OF SECURITY OFFERINGS • PRIVATE PLACEMENT • INITIAL FINANCING • SIGNALING EFFECTS • THE SECONDARY MARKET • PRACTICAL STUDY (MARI Gas Company Ltd) o History and Background o MARI Gas Field o Regional Offices o Management
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Classical Theory Structure Introduction By way of illustration‚ in this document we will describe and explain the classical structural theory as presented by Max Weber. To highlight the advantages and disadvantages of this classical structure as used in a realistic modern organization we will apply this theroy as used today in our public police department. Classical Structural Theory In the classical structural theory a person is hired for their technical expertise rather than on
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Social Structure Theory In today’s society we have seen the increasing amounts of crime either in the newspaper‚ news in media‚ or even experience it on our own. The government questions what are the reasons people develop criminal behavior which more than likely leads to criminal activity. The social structure theory has created surveys and information regarding to the people’s reactions‚ feelings‚ knowledge and economic class that makes them develop the urge to get involved in crime. Social structure
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Pfizer Inc.’S Cost of Capital and Capital structure - Xiaoyue Shi The costs of capital and capital structures for Pfizer Inc. and its two competitors Merck & Co. Inc. and Johnson & Johnson in the pharmaceutical industry are analyzed in this memo. When calculating the cost of common stock for the three companies‚ three different approaches including Capital Asset Pricing Model (CAPM)‚ Discounted Cash Flow (DCF) and the bond yield plus risk premium are applied (Appendix A). For CAPM approach
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Social Structure Theories Tamera Lawson CJ 102 Instructor John Wagner October 9‚ 2012 Social structure theories are theories that aim to describe criminal behavior. These theories have been used for years to decipher the many aspects that plan a hand in people committing various crimes. The three main theories are social disorganization theory‚ strain theory‚ and cultural deviance theory. Each theory is different in determining the factors that cause criminal
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Contents :- Introduction on Capital Structure……………………..5 Summary and Evaluation of Articles…………………6 Conclusion………………………………………………………..8 References/Bibliography………………………………….9 Introduction On Capital Structure :- In the field of finance capital structure means a way an organization or firms finances their assets by the way of some mix and match of Equity‚ Debt or Hybrid Securities. The modern thinking on capital structure is based on the Modigliani-Miller theorem given by Franco Modigliani
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Social Structure Theory Shanee Mitchell CJS/231 December 1‚ 2014 Gary Howard Social Structure Theory In this paper I will address and discuss social structure theory. I have chosen the “Pelican Bay State Prison: War Zone” video. I will discuss how the video supports social structure theory‚ the primary subject or content of the video‚ and the social issues raised in the video. I shall also address the major principles of sociological theory addressed in the video and some possible ramifications for
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An Appraisal of Dividend Policy and Capital Structure of Apex Tanneries Limited 1. Company Profile Apex tanneries has been setting standard in Bangladesh leather export industry since 1976.equiped with the state of the art Italian modern machinery and maintaining high quality strictness. Through the years its production has been progressively entailing a constant expansion of building and machinery .Annual production exceeds 23 million square meters and company sales turnover amount to
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