Premium Essay

I Want This Paper

In: Business and Management

Submitted By lawrenceayoub
Words 377
Pages 2
. How much business risk does AHP face? Stable annual growth (10~15%) and profit margin (11~12%). Overall low-risk investments; ‘proven’ formulas instead of R&D. AAA Bond Rating. (EBIT 1981 / EBIT 1980) / % increase in sales. (954,8 / 857,5) / (4131,2 / 3798,5) = 1,02 2. How much financial risk would AHP face at each of the three proposed levels of debt shown in exhibit 3? DFL = % 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



5. 6. 7.

8.

9.

10.

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

Similar Documents

Free Essay

Sorry

...Sorry I just want to see this paper. Sorry I just want to see this paper. Sorry I just want to see this paper. Sorry I just want to see this paper. Sorry I just want to see this paper. Sorry I just want to see this paper. Sorry I just want to see this paper. Sorry I just want to see this paper. Sorry I just want to see this paper. Sorry I just want to see this paper. Sorry I just want to see this paper. Sorry I just want to see this paper. Sorry I just want to see this paper. Sorry I just want to see this paper. Sorry I just want to see this paper. Sorry I just want to see this paper. Sorry I just want to see this paper. Sorry I just want to see this paper. Sorry I just want to see this paper. Sorry I just want to see this paper. Sorry I just want to see this paper. Sorry I just want to see this paper. Sorry I just want to see this paper. Sorry I just want to see this paper. Sorry I just want to see this paper. Sorry I just want to see this paper. Sorry I just want to see this paper. Sorry I just want to see this paper. Sorry I just want to see this paper. Sorry I just want to see this paper. Sorry I just want to see this paper. Sorry I just want to see this paper. Sorry I just want to see this paper. Sorry I just want to see this...

Words: 273 - Pages: 2

Premium Essay

Nothing

...Nothing is going on here I just want to view this paper so that I can do my own report that is due in about 6 hours and I really need this class in order to graduate Nothing is going on here I just want to view this paper so that I can do my own report that is due in about 6 hours and I really need this class in order to graduate Nothing is going on here I just want to view this paper so that I can do my own report that is due in about 6 hours and I really need this class in order to graduate Nothing is going on here I just want to view this paper so that I can do my own report that is due in about 6 hours and I really need this class in order to graduate Nothing is going on here I just want to view this paper so that I can do my own report that is due in about 6 hours and I really need this class in order to graduate Nothing is going on here I just want to view this paper so that I can do my own report that is due in about 6 hours and I really need this class in order to graduate Nothing is going on here I just want to view this paper so that I can do my own report that is due in about 6 hours and I really need this class in order to graduate Nothing is going on here I just want to view this paper so that I can do my own report that is due in about 6 hours and I really need this class in order to graduate Nothing is going on here I just want to view this paper so that I can do my own report that is due in about 6 hours and I really need this class in order to...

Words: 333 - Pages: 2

Premium Essay

Phil201 Response Paper Advice

...Here's what I am looking for (and perhaps more importantly what I don't want to see). First of all, you must follow, thoroughly and exactly, all of the precise directions in the "Response Paper Instructions" document, which can be found under Course Content > Assignment Instructions. There is no substitute for reading and following all of the Instructions there. After you have read that Instructions document, you can move on to consider what I share below. I want you to succeed. The following is to help you avoid some common mistakes and shortcomings I've seen from past students. Note the following dos and don’ts.... 1. DO stick with the outline in the Instructions: you could even turn the five questions into headings (and sub-headings if necessary). DON’T go down rabbit trails. Avoid peripheral issues. I do not want to see a general article on the existence of God, I want to see an article responding precisely to the points that were specified. 2. DO focus on understanding and applying the arguments and concepts in the course materials. DON’T just repeat arguments verbatim from the book. I want you to refer to the book in your answers, however I don’t want you to just copy an argument out of the book and feel like you answered the objection. Explain how this argument from the book answers this particular claim. 3. DO take the article seriously and treat all “sides”...

Words: 1301 - Pages: 6

Premium Essay

Healthy Eating

...Associate Level Material Appendix D Research Plan As part of your research plan, you must first draft a research question for your research paper that will guide the rest of your writing. A research question, which is more specific and focused than a general topic, is the question that your research paper will be answering. For example, if your general area of interest is social security, a possible research question might ask, “How can low-income families save more money if the United States had a reformed social security plan that includes personal retirement accounts?” As you develop a research question, keep in mind that you will need to research sources to support your topic. Do not pick a one-sided question that will limit your research. Instead, develop a research question that lends itself to further exploration and debate—a question you genuinely want to know the answer to. Try to pick a research question that is neither too broad (covering too much) or too narrow (covering too little). It should be broad enough to be discussed in a short research paper. Part 1: Complete the Research Plan |What is your general topic or area of interest? |Healthy eating | | | | | | ...

Words: 1019 - Pages: 5

Free Essay

Joining Site

...I am just trying to join this site and take a look at what kinds of papers and information may be on the site. There is a minimum 250 word essay required to join. I am not presently uploading an actual paper but certainly may once I get on the site and look around and decide if I want to continue or not. I am just trying to join this site and take a look at what kinds of papers and information may be on the site. There is a minimum 250 word essay required to join. I am not presently uploading an actual paper but certainly may once I get on the site and look around and decide if I want to continue or not. I am just trying to join this site and take a look at what kinds of papers and information may be on the site. There is a minimum 250 word essay required to join. I am not presently uploading an actual paper but certainly may once I get on the site and look around and decide if I want to continue or not. I am just trying to join this site and take a look at what kinds of papers and information may be on the site. There is a minimum 250 word essay required to join. I am not presently uploading an actual paper but certainly may once I get on the site and look around and decide if I want to continue or...

Words: 253 - Pages: 2

Premium Essay

The Importance Of Thinking Before Dying

...not knowing would be just as horrifying. This would be a very important decision to make. If I were in that situation, I would probably choose to turn over the paper and accept my death. My first reason why I would turn over the paper would be, making the most of what you have left. You would be able to make the most of what is left of your life and spend it all up to the last second you have left. You could use the time to spend time with your family and do fun things for the last time with them. Another reason why I would choose to turn over the paper would be, because I would be prepared to die. You would be ready for it, when you die plus, you could prepare and get ready for it...

Words: 730 - Pages: 3

Premium Essay

The Four Components In The Rhetorical Situation

...components to the rhetorical situation are the writer, the reader, the text, and the medium. The first rhetorical situation I will analyze is the writer, and to mainly focus on what exactly I am trying to get across for the readers. The first thing when I am going through the steps of a writer is to start from the top, I feel as if some people jump around but I like to go in order I feel like as if it gives me a sense of direction when coming up with a reason to write my paper. Going into the second step of the writer is trying to find out what my goal is and that basically means what do I want my final outcome to look like and will it affect anything else? And to wrap up the next two parts of the guide since they kind of blend in together, is that I always want my readers to know the reason behind my own writing, I don’t want to leave them on a cliff, I always explain to them why I am writing this essay or prompt....

Words: 560 - Pages: 3

Premium Essay

My Writing Reflection

...Health Science major, I did not realize how big of a role reading, writing and communicating plays in the health sciences field until I start taking my degree specific classes. All of the writing thus far has helped me realize how important being a good writer is, and helped me to see some of my strengths and weaknesses. I have never truly liked writing especially in the academic setting, but I know how important it is. Writing is a good way of expressing yourself and reflecting and analyzing your thoughts. I have never been confident in my writing skills, but I have seen major improvement over the year and hope to continue to grow as a reader and a writer. Improvements in My Writing I have saw...

Words: 892 - Pages: 4

Premium Essay

Nats Controversy

...1775 Guidelines for Technological Controversy Assignment Instructor: Dr. Vera Pavri Once you have selected your academic and popular sources, I want you to gather information about each side of your debate and then start organizing the various arguments. Don’t worry about choosing sources that only present one side of the argument or another. That is not the point. Many scholarly sources for example, are likely to provide you with arguments that you will use for both sides of your controversy. While you don’t have to worry about choosing the same number of “for” articles and “against” articles, it is important to make sure you have a balanced number of arguments for each side of your debate. Finally, you also don’t need to separate your popular and scholarly sources as they are likely to examine similar issues. You don’t want to be repetitive when describing various arguments, so think about a way of effectively organizing the arguments you will presenting. Your paper is essentially going to be divided in two parts. The first part will be about describing the arguments on either side of the debate. I call this the descriptive component of your paper. The second part of your paper is the analysis. You will be analyzing two things. First, I want you to compare and contrast how your topic is presented in scholarly versus popular media. Think of areas like language (simple versus complex), use of references, and length of article as a starting point for your analysis. Make...

Words: 1997 - Pages: 8

Premium Essay

Research Plan

...question for your research paper that will guide the rest of your writing. A research question, which is more specific and focused than a general topic, is the question that your research paper will be answering. For example, if your general area of interest is social security, a possible research question might ask “How can low-income families save more money if the United States had a reformed social security plan that includes personal retirement accounts?” As you develop a research question, keep in mind that you will need to research sources to support your topic. Do not pick a one-sided question that will limit your research. Instead, develop a research question that lends itself to further exploration and debate—a question for which you genuinely want to know the answer. Try to pick a research question that is neither too broad, which covers too much, or too narrow, which covers too little. It should be broad enough to be discussed in a short research paper. What is your general topic or area of interest? My general topic is “Recycling”, which is one topic from the list provided in the syllabus. Recycling is an important part of my life, because I care deeply about our environment. I was taught to recycle at a young age, and was somewhat shocked to see how careless consumers are here in the United States, and the “throw-away” mentality most consumers have. What is it about your general topic of interest that interests you? I want to know how persistent recycling...

Words: 693 - Pages: 3

Free Essay

Mgt 300

...answered according to instructions; each heading is worth a percentage of each case grade. This is how I want your paper turned in. The introduction is generally one paragraph. The easiest way to explain this section is to think of it like an abstract or introduction. This section, if written properly, can actually act as the abstract for this paper. It will, in a sense, set up the rest of the paper, which is the review of the case, analysis, recommendations, and the summary and conclusions sections. If there is a second paragraph, it will look like this. An interesting APA fact is that there is only one space after the period. This is difficult for many to get used to and takes practice. The paper should be written in third person narrative. I do not want to see you writing in the first person. Note: I have bolded the required headings that must be present in the paper and please keep bolded. Answer the following questions by applying the concepts learned in Chapter 1. Also, conduct literature reviews on the subject of discussion and use to support your case study answers: (1) Based on the evidence presented, has discrimination occurred? If so, which type of discrimination (i.e., disparate treatment, disparate impact, both)? If you aren’t sure, what questions would you want to have answered to make your determination? (2) Which party (plaintiffs or defendant) has the burden of proof in this case? What defense could Xerox offer if...

Words: 918 - Pages: 4

Free Essay

Corporate Finance

...of 8 How to Structure & Organize Your Paper Organizing Your Thoughts Making sense out of your observations about a text is a difficult task. Even once you've figured out what it is that you want to say, you are left with the problem of how to say it. With which idea should you begin? Should you address the opinions of other thinkers? As to that stubborn contradiction you've uncovered in your own thinking: what do you do with that? Writing papers in college requires that you come up with sophisticated, complex, and even creative ways of structuring your ideas. Accordingly, there are no simple formulae that we can offer you that will work for every paper, every time. We can, however, give you some things to think about that will help you as you consider how to structure your paper. Let Your Thesis Direct You Begin by listening to your thesis. If it is well-written, it will tell you which way to go with your paper. Suppose, for example, that in responding to Richard Pipes' book, The Russian Revolution, you have written a thesis that says: The purpose of the Russian Revolution was not only to revise Russia's class system, but to create a new world, and within that world, a new kind of human being. This thesis provides the writer (and the reader) with several clues about how best to structure the paper. First, the thesis promises the reader that it will argue that the Russian Revolution was not simply a matter of class. The paper will therefore begin by saying that although...

Words: 4691 - Pages: 19

Premium Essay

Nghia Dinh

...ASSIGNMENTS PROSPECTUS RESEARCH PORTFOLIO RESEARCH PAPERS 1-3 RESEARCH PAPER 4 PROSPECTUS In the Prospectus (500-750 words/MLA format), you will explain your research topic for the semester. I will read your prospectus and I might reject your topic, or parts of your topic. If I do, you’ll have to re-do the prospectus, or parts of your prospectus. Therefore, you should probably speak to me or email me about your topic before you write the prospectus. Title your Prospectus Like this: Examining the: _______ Subculture (fill in the blank with the subculture you plan to study) WHAT TO INCLUDE IN YOUR PROSPECTUS Introduction Describe why you chose this subculture and what about it interests you. Body Section One (this corresponds to Paper One) Explain how the subculture is viewed, and/or how it should be viewed. Body Section Two (this corresponds to Paper Two) Explain what or who signified a significant change within the subculture (this might include trends, discoveries, inventions, a certain person, or another subculture, etc.). Body Section Three (this corresponds to Paper Three) Explain an argument regarding a controversial issue within the subculture. Body Section Four (this corresponds to Paper Four) Explain why the larger culture should care about the subculture. Conclusion RESEARCH PORTFOLIO: 10 – 15+ SOURCES The purpose of keeping a research portfolio is to create an artifact record of all the research you’ll compile this semester in regards to your chosen subculture. Each...

Words: 602 - Pages: 3

Free Essay

B173 Term Paper.Pdf

...Bio 173 Fisheries Biology: Term Paper Date: September 3, 2013 File: d:\B173-2013\B173_term_paper.wpd Summary You are to write a scientific term paper about a topic related to fisheries biology. Goal Ron Coleman The goal is for you to produce a term paper that illustrates that you have researched and thought in depth about a topic in fisheries biology. The term paper will tell me that you understand the important issues in a particular field and have identified the current cutting edge in that research. This paper is NOT an essay. I do not want you to explain a topic to me. I want you to discuss current research on a topic. If you find yourself including extensive background material then you are not doing the paper correctly. The paper is about the current research, not just about the phenomenon. For each of your source papers, tell me what the authors were trying to investigate, how they did their investigation, what they found and what it means. It is possible that you have never done this kind of paper before. If you are unclear about what you are doing, ask me about it. If you think that this is just like writing a typical term paper on some topic, then you are dead wrong. Most importantly, think of this as an opportunity to show me what you can do, not as something that you have to do. I want you to discover something and to share that discovery with me. Potential Topics I suggest you look at the following journals for inspiration: Science, Nature, Journal of Fish Biology...

Words: 3434 - Pages: 14

Premium Essay

Argument Analysis: The Boston Massacre

...The Boston Massacre, also known as the “Incident on King Street,” occurred on March 5, 1770 in Boston, Massachusetts. Before the Boston Massacre occurred, colonists were irate due to the Townshend Acts which was created by the British that put tax on tea, glass, lead, paints, paper goods, and many other common items. These items would be made in Britain and the exported to the colonies; therefore, Britain decided to put a tariff on these items, which included a fee for exporting and trade. The colonists were irate because they were British citizens. The Boston Massacre began with a small argument between British Private Hugh White and a few colonists outside the Custom House in Boston on King Street. The argument escalated, more colonists gathered and began to harass Private Hugh White by throwing sticks and snowballs at him. Colonists continued to increase in numbers until there were over 50 colonists at the scene and soldiers were sent to the Custom House to maintain the argument....

Words: 1531 - Pages: 7