...1-310-919-0950 Hi rlaughter1981 StudyMode.com Essays Book Notes AP Notes More Essays » Chemistry Dupont Case By tweaklefairy, Feb 2009 | 9 Pages (2,231 Words) | 1641 Views | 12345 Report | This is a Premium essay for members like you Executive Summary DuPont has been known for its low reliance on borrowings. In the 1970’s, the company had to assume a substantial portion of debt of Conoco, a newly acquired company. In 1983, the managers have to decide about the future optimal target debt ratio. Should the company continue to keep about 40% of its assets financed via debt or should it strive to lower its borrowings to 25%? We defined several criteria to determine our choice – return, risks and other quantitative and qualitative factors. Targeting a debt ratio of 40% will maximize the firm’s value. A higher earning’s per share and dividends per share will lead to a higher stock price in the future. Due to leveraging, return on equity is higher because debt is the major source of financing capital expenditures. To maintain the 40% debt ratio, no equity issues will be declared until 1985. DuPont will be financing the needed funds by debt. For 1986 onwards, minimum equity funds will be issued. It will be timed to take advantage of favorable market condition. The rest of the financing required will be acquired by issuing debt. Case Context DuPont is a very big company with a low debt policy designed to maximize financial flexibility and insulate operations...
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...1 Introduction The primary purpose of this essay is to comparatively analyze information disclosure of intellectual capital in the UK and China, using the content analysis method on company annual reports. In contemporary society, the importance of intellectual capital (IC) and the popularity of using IC to value a company’s competitiveness have been increasing. The definition offered by the Chartered Institute of Management Accountants (2001) is probably one of the most comprehensive definitions: “…the possession of knowledge and experience, professional knowledge and skill, good relationships and technological capacities, which when applied will give organizations competitive advantage.” Predicting a company’s future market performance is one of the key functions of IC information disclosure (Roslender and Fincham, 2004). Consequently, IC will have a significant role in the future value creation process. This study has some limitations, such as the small sample number, which has implications for how representative the data are. Ten companies in the respective stock markets were selected in the UK and China (total twenty) and content analysis was performed. A larger sample would have made the calculations too complex for the time available. The following paper reports the results of empirical research indicating that the trend of IC information disclosure is steadily increasing in both China and the UK...
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...Critical Review on ‘Revisiting the Capital Structure puzzle: UK Evidence’ Assignment for PGBS0140 Accounting & Finance for Managers Plymouth Business School Module No.:PGBS0140 Module: Accounting & Finance for Managers Group Members and Student No.: Word count: 1492 Critical Review on ‘Revisiting the Capital Structure puzzle: UK Evidence’ Al-Najjar, B. and Hussainey, K. (2011). Revisiting the capital structure puzzle: UK evidence. The Journal of Risk Finance, 12 (4), 329- 338. This essay will summarise and critically review the report of Al-Najjar and Hussainey (2011) in which the effects of potential drivers of corporate capital structure are differing for three different definitions of capital structure. The article of Al-Najjar and Hussainey is a meaning but problematic piece of research. This essay aims to critically analyse the strengths and weaknesses of authors’ arguments and mainly focuses on the introduction, theoretical background, hypothesis, empirical tests, and result. Summary Al-Najjar and Hussainey found a capital structure puzzle which is involved with different definition of capital structure and determinants of corporate capital structure. They collected a sample data of 379 non-financial firms in the UK from 1991 to 2002, and investigated firms’ corporate characteristics (including firm growth rate, risk level, firm size, asset tangibility, and firm’s profitability) and corporate governance elements (including non-executive directors...
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...u08a1 Essay – Minimizing Working Capital Using Internet resources or the Capella University Library, research and write an essay on the importance and challenges of minimizing working capital. Your paper should be 4–6 pages in length and include three outside references. Your writing should be well organized and clear. Writing structure, spelling, and grammar should be correct as well. How to improve better performance of Working Capital Management Read more: http://www.ukessays.com/essays/finance/how-to-improve-better-performance-of-working-capital-management-finance-essay.php#ixzz2E8PrJWkr http://www.studymode.com/essays/Working-Capital-408723.html http://blog.accountingcpd.net/2012/08/16/working-capital-optimisation-in-smes-part-iii/ http://www.termpaperwarehouse.com/essay-on/Working-Capital/53803 * http://www.termpaperwarehouse.com/essay-on/Minimizing-Working-Capital/30029 * http://www.ing-wholesalebanking.com/insights/assets/pdf/research/1482.pdf * http://smallbusiness.chron.com/effect-revenue-increase-working-capital-42574.html * Working Capital * In business accounting, working capital is a benchmark measure of your company's ability to meet its short-term obligations. It's calculated by taking your business' current assets and subtracting its current liabilities. Current assets are those that can or will be converted to cash in the next year. The major current assets are cash, accounts receivable and inventory. Current liabilities are obligations...
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...Orwell ‘A Hanging’ is a non fiction essay written by George Orwell in 1931 in which he recounts a personal experience in Burma as police officer where he observes a ‘criminal’ being hanged. The essay presents the reader with the subject of capital punishment in a structure to challenge the reader’s views and stipulate a response from the readers as it is a subject that creates a great controversy. Orwell chooses not to use facts such as statistics and figures that simply asks and creates a black and white answer; instead he arouses the readers emotions through imagery, setting and narrative structure as he explores the themes and the message. The essay starts with a pessimistic description of the setting instantly creating a depressing mood as the rain is ‘sodden’ which creates a negative depiction. Orwell’s use of pathetic fallacy is evident as the rain symbolises sadness and tragedy. The reader is made aware of the prisoner’s unhealthy living conditions through Orwell’s wordchoice: “a sickly light, like yellow tinfoil.” The simile suggests that the light appears unnatural. The word ‘sickly’ implies the sense of illness and wrongness as ‘yellow tinfoil’ further the feeling of death, decay and unnaturalness of the prisoners being left to rot. The feelings of unnaturalness is continued throughout the essay as his point is that killing a life, whilst in full flow is unnatural and appears to strengthen Orwell’s feeling of being against capital punishment. The reader’s sympathy is...
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...The purpose of this paper, prepared by Jessica Chan under the supervision of Robert F. Bruner is about analyzing the companies Coca Cola and Pepsi after Pepsi has announced a merger with Quaker Oats Company with a deal at around $14 billion. With this deal Pepsi would have access to 83.6% of the sport drink market and around 33% of the U.S. noncarbonated-beverage market, followed by Coke with 21%. The paper wants to answer the questions how the latest announcement of Pepsi has an effect on the two companies´ prospects for value creation by showing the company background of both companies, giving a briefly industry overview of the beverage market and competitive events and establishing a financial comparison, especially with ratio and economic profit analysis. In the world Coca Cola and Pepsi have towered as the two leading brands of beverages. In the year 2000, Coca Cola was the largest manufacturer, distributor, marketer of soft-drink concentrates and syrups in the world and its market value reached $110.01 billion. On the other side Pepsi was a $20 billion worth company in 2000, acting in the snack food, soft drink and noncarbonated beverage market. Both companies have reached worldwide expansion of their markets, which include a large product range of beverages, apparel and paraphernalia with their respective logos. Both have grown into longstanding global and social industry leaders. Coca Cola´s annual sales were $20.5 billion which were earned also through a variety of...
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... |Course Title __China’s foreign trade _ |Compulsory[ ] Optional[√] | | |Submission Date __Dec 5, 2012_ ____ | | | | |Mode of examination : | | | |Essay | |For Students |School International School Major IET | | |Name 謝玉麟 Student No. 2010054425 Mainland Student [ ] Non-mainland Student [√] | | |Essay topic Understanding China’s trade surplus | |Evaluations | | | |Comments： | | |...
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...Issues in Management Essay Introduction With the rapid development of knowledge, economy and communication technologies, the world economic integration and international division of labor is increasingly deepening. Enterprises, as one of the most important elements in global value chain are facing both opportunities and challenges. Traditionally speaking, medium sized enterprises (SME) are primarily facing towards their home-market (Lindmark, 1998). However, due to the trend of globalization, more small and medium-sized enterprises have already started international expansion (Knight and Cavusgil, 1996). In the process of economic globalization, the competitive advantage depends largely on the enterprise innovation and the ability to enter into the market quickly. This essay will discuss the globalization process of a manufacturing company located in a G7 economy making high quality agricultural equipment and both the positive and negative features of globalization. The globalization process of the company Although internationalization is a common sense in today’s marketing, however, to discuss the internationalization process of enterprise, it is important to define enterprise internationalization itself clearly. Beamish(1990) defined enterprise internationalization as "the process by which firms both increase their awareness of the direct and indirect influence of international transactions on their future, and establish and conduct transactions with other countries...
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...Essay 10: Earnings per Share Dividends or dividend requirements can either positively or negatively affect the computation of basic EPS. Basic EPS is calculated by subtracting preferred dividends from net income and dividing the result by the weighted-average of shares outstanding.(5) If preferred dividends are a larger amount it will result in a smaller EPS and vice versa. The treasury stock method of computing dilutive EPS assumes that the options or warrants are exercised at the beginning of the year (or the date of issue if later), and that the company uses the proceeds to purchase common stock for the treasury. If the exercise price is lower than the market price proceeds are insufficient to buy back all the shares causing the company to add the incremental shares remaining to the weighted-average number of shares outstanding to compute diluted EPS.(5) The treasury stock method must be used to compute dilutive EPS under GAAP. Convertible bonds are determined to be dilutive or anti-dilutive based on how their exercise affects EPS.(2) Dilutive convertible bonds will decrease EPS and anti-dilutive convertible bonds will increase EPS. A capital structure is complex if it includes securities that could have a dilutive effect on earnings per common share.(5) When a complex capital structure exists the company generally reports both basic and diluted EPS. Essay 2: Leases For the first transaction the leased computer should be shown in Superior Electronic’s (the lessee) financial...
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...publisher. BUS378 Knowledge and Organisational Learning Murdo 2 ch University Contents Unit information Information about the unit 3 Contact details 5 How to study this unit 8 Resources for the unit 10 Study schedule 11 Assessment 13 Appendix 1 Essay marking guide 17 Appendix 2 Presentation marking guide 18 Murdoch University BUS378 Knowledge and Organisational Learning 3 Information about the unit Welcome to: BUS378 Knowledge and Organisational Learning Unit description The management of information and knowledge and its role in organisations are widely recognised as important elements contributing to international competitiveness in the digital (knowledge based) economy. This unit examines how the concepts of information and knowledge assist in the understanding of organisational processes, organisational learning and strategy. Topics examined include: The origins and future of knowledge creation, dissemination and management; knowledge and organisational strategy; (hard) ICT and infrastructure based and (soft) human organisational systems; knowledge and learning in organisations; knowledge, innovation, value creation; knowledge stocks, Intellectual Capital(IC) and knowledge flows within Social Capital...
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...A VISUAL GUIDE TO ESSAY WRITING Dr Valli Rao, Associate Professor Kate Chanock, and Dr Lakshmi Krishnan use a visual approach to walk students through the most important processes in essay writing for university: formulating, refining, and expressing academic argument. ‘MetamorTHESIS‘ Your main argument or thesis is your position in answer to the essay question. It changes and develops as you undertake your reading and research towards the essay. how to develop & communicate academic argument “I love the way the authors explain what an argument is. I also love the way they justify holding opinions in an academic context … A Visual Guide to Essay Writing shows you excellently how to communicate with your marker by employing your ‘authorial voice’.” - Dr Alastair Greig Head, School of Social Sciences The Australian National University Valli Rao Kate Chanock Lakshmi Krishnan “This is a great book ... clear, useful, beautifully conceived and produced ... an intriguing approach, one that will make sense to students and really assist their essay writing skills.” - Brigid Ballard & John Clanchy authors of the international best-seller Essay writing for students: a practical guide How effective structure supports reasoned argument in essays1 Discipline/field Topic Underlying question Introduce discipline/field/context and topic Roughly, 10–15% of essay length Why is this topic interesting from the perspective of the discipline/field...
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...This essay will aim to investigate the ethical treatment of shareholders and workers in a traditional, capitalist corporation; The Ford Motor Company and compare and contrast the findings with the treatment of these stakeholders in the Mondragon Cooperative Corporation. The structure of this essay will be as follows; firstly the fundamental differences between the two contrasting organisations will be examined and how these differences impact the ethical treatment of the relevant stakeholders; secondly, the ethical treatment of shareholders in regards to corporate governance and the executive’s accountability and control will be investigated, and lastly, the ethical treatment of workers within the two contrasting organisations will be scrutinized in relation to the employees right to participation and association, as well as the right to fair wages. To frame the purpose of this essay; to investigate the ethical treatment of shareholders and workers in a traditional, capitalist corporation compared to the treatment of these stakeholders in the Mondragon Cooperative Corporation, it is imperative to firstly examine the contrasting ideologies and points of difference between the two ways of organising. In understanding the fundamental differences between the two contrasting organisations, it is then possible to recognise the ethical dilemmas that arise for both shareholders and workers. The fundamental differences between a traditional capitalist corporation and the Mondragon Cooperative...
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...Corporate Governance refers to the way an organization is directed, administrated or controlled. It includes the set of rules and regulations that affect the manager’s decision and contribute to the way company is perceived by the current and potential stakeholders. The corporate governance structure specifies the distribution of rights and responsibilities among different participants in the corporation such as; boards, managers, shareholders and other stakeholders and spells out the rules and procedures and also decision making assistance on corporate affairs. By doing this, italso provides the structure through which the company’s objectives are set and the means of obtaining those objectives and monitoring performance. Corporate governance may be the ways of bringing the interests of investors and managers into line and ensuring that firms are run for the benefit of investors. Given the state of the economy of Pakistan in 2010, troubled as it is; ideally it would be more desirable to look at the governance issues at macro level for Pakistan. As a famous economist, Dr Shahid Javaid Burki- a long observer of Pakistan’s economy has recently stated “Pakistan can generate a greater bounce in its economy than India by creating better governance. It has occurred before in the country’s difficult economic history and could happen again.” (Improved Governance: Dawn, 12th, October 2010). However, as a starting point , in this paper we look at closely the governanceissues for the...
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...change EPS / % change EBIT = 1,12 / 1,11 = 1,009 Higher DFL means higher EPS variability 0% 1 30% 1,06 50% 1,1 70% 1,15 Debt to Capital = total debt / net worth Higher DtC ratio means higher risk 0% 0,009 30% 0,428 50% 0,99 70% 2,33 3. How much potential value, if any, can AHP create for its shareholders at each of the three proposed levels of debt? EPS goes up as % of debt goes up ($3.18 - $3.49) 0% $3.18 30% $3.33 50% $3.41 70% $3.49 Dividends rise 0% $1.90 30% $2.00 50% $2.04 70% $2.10 4. What capital structure would you recommend as appropriate for AHP? To determine the ‘debt capacity’ of a firm: EBIT/Interest Current: 954.8/2.3 = 415 Debt @ 30%: 922.2/52.7 = 17.5 Debt @ 50%: 922.2/87.8 = 10.5 Debt @ 70%: 922.2/122.9 = 7.5 All are great, so need to look at more figures What are the advantages of leveraging AHP? Access to additional capital • Tax shield – debt is tax deductible • Increase in shareholder value • Increase in EPS • Increase in Dividends What are the disadvantages? a. Higher risk How would leverage up affect the company’s taxes? a. As debt goes up, so do the tax shield benefits How would the capital markets react to a decision by the company to increase the use of debt in its capital structure? a. The market will expect higher return. How much might AHP implement a more aggressive capital structure policy? a. They are becoming more risky b. They are separating from the grip of the CEO (who will eventually leave) c. Company will...
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...Academic assistance is the defined as an activity for teaching available for students in all subjects including science, mathematics, management, business studies, business and law and information technology. In the academic assistance, all subject related helps is being provided to the students to meet specific subject related queries. It is defined as a tutoring practice, which provides support to the students in solving particular subject related queries. Apart from this, this makes the learning process easy for the students through providing ready to learn or tailor made notes and helps in solving specific subject problems. Basically, academic assistance is the new method of tutoring by a large number of institutions to facilitate the students in their studies. Academic assistance encompasses all types of subjects from English to Management. In the academic content development, a number of subjects such as business studies, marketing, accounting and financial management, operations management, qualitative techniques, history, science, statistics, dissertation and its proposal development, human resources and organizational behaviour are covered. In pertinent to the given subjects, academic assistance is a kind of help provided to the students in developing particular topic related subjects content. Academic assistance is not only limited to provide a notes specific to subjects, but also it covers a full helps in completing the project steps such as authentic data collection...
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