Chapter 12 Capital Structure and Leverage LEARNING OBJECTIVES After reading this chapter‚ students should be able to: • Explain why capital structure policy involves a trade-off between risk and return‚ and list the four primary factors that influence capital structure decisions. • Distinguish between a firm’s business risk and its financial risk. • Explain how operating leverage contributes to a firm’s business risk and conduct a breakeven analysis‚ complete with
Premium Capital structure Weighted average cost of capital Debt
for liberalisation of Industry in our country. 1) Heavy Reduction in Import Duty. 2) Foreign Equity Participation. 3) Elimination of Industrial Licensing System. 4) Encouraging Monetary and fiscal policy. 5) Introduction of SEBI and other financial measures. All above resulted into import of equipment‚ raw materials‚ components etc. very low prices. Also their features‚ specification quality etc. are far superior than indigenous products. Products are readily available with goods service
Premium Management Operations management Product differentiation
STANDARD OPERATING PROCEDURES 13 November 2013 AA01 PART 2 – PROJECT WORK STANDARD OPERATING PROCEDURE 1. Introduction a. Induction of new workers Philosophy ABC Kindergarten (ABCK) follows the philosophy and guidelines from the Ministry of Education for the Education of Young Children to offer a high quality early childhood program that provides a safe‚ healthy‚ and nurturing environment. ABCK is accredited through the Ministry of Education for the Education of Young Children. In
Premium Hygiene Childhood Child
in the capital structure of India Inc. are as follows: Key observations: * Indian corporate employ substantial amount of debt in their capital structure in terms of the debt-equity ratio as well as total debt to total assets ratio. * As a result of debt-dominated capital structure‚ the Indian corporate are exposed to a very high degree of total risk as reflected in high degree of operating leverage and financial leverage and‚ consequently‚ are subject to a high cost of financial distress
Premium Finance Capital structure Investment
(2-3) Little Books Inc. recently reported $3m of net income. Its EBIT was $6m‚ and its tax was 40%. What was its interest expense? ANSWER: Net Income $3 Million EBIT $6 Million Divided by 0.6 Less IBT $5 Million Income before Taxes $5 Million Interest Expense $1 Million **Interest Expense = $1M** (2-7) The Talley Corporation had a taxable income of $365‚000 from operations after all operating costs but before (1) interest charges of $50‚000
Premium Progressive tax Taxation Income tax
PUEBLO EAGLES COMPOSITE SQUADRON OPERATING INSTRUCTION 10-1 1 APR 2010 Administration GENERAL SQUADRON OPERATIONS This instruction prescribes general procedures for routine squadron operations. Table of Contents Page 1. Squadron Introduction and Information 1.1 Introduction 3 1.2 Definitions 3 1.3 Information 4 2. Squadron Organization 1. Flights 5 2
Premium Sergeant
UNIX/Linux‚ Mac‚ Microsoft Windows Operating System Differences University of Phoenix Abstract This paper will elaborate on the major differences of the main Operating Systems (OS)‚ which are UNIX/Linux‚ Mac®‚ Microsoft® Windows®. The areas of discussion for this paper will be on Memory Management‚ Process Management‚ File Management‚ and Security for each operating system. Operating Systems (OS) for a computer is the main processing software
Premium Operating system File system
CAPITAL GAINS According to income tax act 1961 ‘capital gains’ is the fourth head of income. Any profit or gains arising from the transfer of capital assets during the P.Y. shall be chargeable to income tax under the head capital gains and shall be deemed to be the income of P.Y. in which the transfer took place. Thus from a plain reading – Profits or gains earned on the sale of capital assets by an assessee during the P.Y. is called as capital gains. Meaning of Capital Asset: Capital asset means
Premium Generally Accepted Accounting Principles Bond Asset
AT THE BACK OFFICE USE ONLY QUESTION 1 2 3 TOTAL (OUT OF 60) MARK Question 1 (30 Marks) This question consists of 15 multiple-choice questions. For each multiplechoice question‚ choose the one correct answer from the four alternatives given by circling the correct letter A‚ B‚ C‚ or D on page 6. Each multiplechoice question counts as 2 marks‚ giving a total of 30 marks for Question 1. 1. Which one of the following is a capital budgeting decision? A. determining how many shares
Premium Net present value Cash flow
2.1 TYPES OF OPERATING SYSTEM A. Batch Operating System- Batch processing is the most primitive type of operating system. Batch processing generally requires the program‚ data‚ & appropriate system commands to be submitted together in the form of a job. Batch operating systems usually allow little or no interaction between users & executing programs. Examples of such programs include payroll‚ forecasting‚ statistical analysis‚ & large scientific number-crunching programs. Serial processing combined
Premium Operating system