...Long-term Finance and Economic Growth Working Group on Long-term Finance The views expressed in this report are those of the Working Group on Long-term Finance and do not necessarily represent the views of the individual members of the Group of Thirty. ISBN 1-56708-160-6 Copies of this paper are available for $49 from: The Group of Thirty 1726 M Street, N.W., Suite 200 Washington, D.C. 20036 Tel.: (202) 331-2472 E-mail: info@group30.org; www.group30.org Long-term Finance and Economic Growth Published by Group of Thirty© Washington, D.C. 2013 Table of Contents Abbreviations ............................................................................................................................................................................... 5 Glossary .............................................................................................................................................................................................6 Foreword ..........................................................................................................................................................................................8 Acknowledgments ..................................................................................................................................................................10 Working Group on Long-term Finance ................................................................................................................
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...Finance Organization and Long-Term Planning Introduction Sensible Essentials, after considering the Genesis Corporation aggressive growth plan, suggested that Genesis should consider broadening their financing to consider long-term financing beyond just short-term financing. The organization has provided the potential costs and benefits of each long-term option available. Long-Term Financing A company needs long-term financing if they want to expand their business as Genesis is planning by starting operations in Europe and Asia. Sources of long-term financing include shares that are issued to the public and these holders are considered the owners of the business. There are two types of shares – equity and preference. The advantages of equity capital is no fixed maturity, no obligation to redeem, no compulsion to pay dividends, provides leverage capacity, and dividends tax exempt for investors. The disadvantages of equity capital are dilution of control of existing owners, high cost – rate of return expected by the equity holders higher than debt holders, dividends are not tax deductible, issue cost are higher due to underwriting, brokerage, and other issue expenses, along with higher servicing costs including post annual reports (Fedorov, 2012). Preference capital advantages are no obligation to pay dividend, no bankruptcy or legal action for non payment, financial distress of redemption obligation not very high, part of net worth which hence increases its creditworthiness/leverage...
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...Liabilities The role of a liability and what it means to the business as a whole is different for every business. What remains the same is the definition. A liability is a company’s legal debts or obligations that arise during the course of business operations and is recorded on the balance sheet. Liabilities can include many things to a business, such as, loans, accounts payable, mortgages, accrued expenses, etc. All the named liability accounts are just fancy for any money or service that is owed to another party. There are two types of liabilities, current liability and long term liability. Current liability is debt payable within one year and long-term liability is debt payable over more than a year. Current liability includes payables such as wages, accounts, taxes, and accounts payable. Long term liability includes long term bonds, notes payables, and long term leases. It is important that every business knows the concept of extinguishing liabilities. To extinguish liabilities means to satisfy the obligation and or payment to the creditor. Another way to extinguish liabilities is to transfer assets. This idea of extinguishing liabilities is meant for use by the SEC. There are many different industries that consider industry guidance in the FASB, Financial Accounting Standards Board, Codification and they include agriculture, contractors, entertainment, financial services and health care entities. The agriculture industry has many different characteristics represented...
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...Home health care was developed with the benevolent intention of providing a cost-effective alternative to existing forms of long-term health care, while permitting beneficiaries to receive needed short-term, posthospitalization, acute care in their own homes. However, the home health care segment of Medicare recently sustained an unprecedented and explosive growth in program cost. As a result of this alarming expansion, home health care has become the fastest growing expense of the overwhelmingly complex Medicare program and is in danger of spiraling out of control. This article begins with a review of the current structure and administration of the home health care program under the Health Care Finance Administration (HCFA). Mr. Davis details the requirements of Home Health Agencies and their patients to qualify for full Medicare reimbursement under the home health care program. Current practices, based on lenient administrative and judicial interpretations of these qualifications, have resulted in growing demand for home health services and the resulting increase in program cost. Mr. Davis explores the primary limitations on the home health care program, including the overemphasized potential for fraud and abuse, billing and budget inefficiencies, the overavailability of services, the ease of entry into the home health care market, the lack of meaningful physician or patient involvement, and the lack of any insurance copayment or deductible. Mr. Davis critiques contemporary...
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...Taking a Risk with Apple: Cost of Equity TUI University Monessa Catuncan Module 3 SLP FIN501- Strategic Corporate Finance Dr. William Anderson 26 March 2012 Introduction Debt Ratio and Debt to Equity Ratio Calculations for Apple Inc. Total Liabilities (L) = 39.756B Total Equity (E) = 76.615B Short-term Liabilities (SL) = 0 Long-term Liabilities (LL) = 0 (finance.google.com) Debt Ratio =LL+E= 39.75639.756+76.615= 39.756116.371=0.342 Debt to Equity Ratio =LE= 39.75676.615=0.519 Short-term Debt Ratio =SLL+E= 039.756+76.615= 0116.371=0 Short-term Debt to Equity Ratio =SLE= 076.615=0 Long-term Debt Ratio =LLL+E= 039.756+76.615= 0116.371=0 Long-term Debt to Equity Ratio =LLE= 076.615=0 Analysis of Apple Inc. Ratios and Debt Throughout the past decade, Apple’s tremendous success has allowed the company to achieve record-breaking values in total revenue, market capitalization, and cash flows, among many other values. While the calculations above show a debt to equity ratio of almost 0.6, Apple Inc. has not endured debt since 1999; therefore this value can be a slightly misleading. The total liabilities number above represents a wide variety of items such as payrolls, inventory purchases, taxes, etc. If Apple’s debt value were used as the total liability value, this ratio would be zero. The short- and long-term debt to equity ratios also equate to zero. While Apple currently enjoys a debt-free environment, the company has not always seen...
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...Community Living Assistance Services and Supports program (CLASS Act). The CLASS program is designed to expand options for people who become functionally disabled and require long-term services and supports. The CLASS program is effective on January 1, 2011. Working adults will be able to make voluntary premium contributions either through payroll deductions through their employer or directly Adults with multiple functional limitations, or cognitive impairments, will be eligible for benefits if they have paid monthly premiums for at least five years and have been em[ployeed for 3 of those 5 years Adults who meet eligibility criteria will receive a cash benefit that can be used to purchase non-medical services and supports necessary to maintain community residence; payments for institutional care are permitted. The amount of the cash benefit is based on the degree of impairment or disability, averaging no less than $50 per day CLASS is financed by voluntary premium contributions paid by working adults, either through payroll deductions or direct contributions • HOW DOES CLASS INTERACT WITH MEDICAID? CLASS will generally be the primary payer for individuals who are also eligible for Medicaid. The CLASS program gives working adults the opportunity to plan for future long-term care needs by providing a basic cash benefit to those who meet work requirements and have either functional or equivalent cognitive limitations. CLASS is designed to help individuals...
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...Continuum of Care- Long-term Care Long-term care has and is continuing to become an important part of the continuum of care. Years ago Long-term care (LTC) was considered only to be for the elderly, but as time passes it is for anybody and everybody who needs it. Barton (2006) stated, “Regardless of the length of time (i.e., from weeks to years), long-term care is an array of services provided in a range of settings to individuals who have lost some capacity for independence due to injury, chronic illness, or condition” (p. 367). According to Barton (2006), it states that the services long-term care provides help the consumer with basic needs and shows the individuals how to do daily living activities, along with therapy and being able to manage their conditions. Today long-term care is serving consumers of all ages in home, community, and institutional settings (Barton, 2006). Long-term care has contributed to the continuum of care tremendously because it is offering an array of services for consumers in different places and not just focusing on one specific population. In the last few years long-term care has become more of a need for more than 12million people in the United States, and out of these 12 million people, five million of them are nearly disabled (Barton, 2006). Barton (2006) stated, “a significant proportion of people needing long-term care-nearly half –is younger than 65: 40 percent are working age adults and about 3 percent are children younger than age 18”...
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...Psychiatric report (interviewed on october 14 2015 ) Azin deldar Group 10 Personal data Name: ILONA Age: 73 Address: lives in Debrecen Gender: female Place of birth: polgár Marital status: single. Divorced Occupation: retired now. But worked as a store manager Highest level of education: collage . Economics study and finance speciality Circumstances of admission The patient was admitted to the ward because she was experiencing delutions such that her home was infested with bugs coming from bird netsts that had been removed from the deforeastaation over the summer. She was admitted to the ward by her by her psyciatrist and she came in alone. Her date of admission was on october 9th 2015. Year 2005 she was treated in Kenezy hospital due to some family problems. In just that year she lost six of her close family members. In 2003 she was experiencing panic attacks and 2005 she was diagnosed with major depressive dissorder. Autoanamnesis Her current complaint were due to the bugs in her home. By the end of june a bird nest was found and later removed from a chimney in her home. She cleaned everything up but again next day they appeared again on her butter and toast. She was afraid of them due to health concerns. The patient told us that the bugs but her back ones and it got infected. After that she went to the family physician and got some steroid cream. Her symptoms appeared due to sleeping disturbances, she had trouble falling asleep at night time, she took sleeping...
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...United States provides continuum of care for health services. The need for long-term care is growing as the average life span of Americans continues to lengthen. The Centers for Medicare and Medicaid services estimates that about nine million men and woman over the age of 65 in the United States will need long-term care. Long-term care is a range of medical and social services designed to help people who has disabilities or chronic care needs. Services may be short or long-term and may be in a personal home in the community or in a residential facility. Long-term care facilities such as nursing homes provide care for the elderly or people who are unable to take care of them selves. The important of this paper is to discuss the continuum care of long-term care and examine the future trends of long-term care. Long-Term Care In defining long-term care there are several points. Long-term care is low tech, although it has become more complicated because many elderly patients with complex medical needs are being discharge into long-term settings. The age groups that mostly require long-term care are those who are 85 and older. This age group will double by 2030 and double again by 2050. Long-term care facilities are facilities that provide 24- hour skilled nursing assistance with activities of daily living, health services, and a number of activities. Many people would prefer not to be placed in a long-term care facility. However, some elderly have to because of their condition...
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...ASSIGNMENT CLASSIFICATION TABLE (BY TOPIC) Topics 1. Concept of liabilities; definition and classification of current liabilities. Accounts and notes payable; dividends payable. Short-term obligations expected to be refinanced. Deposits and advance payments. Compensated absences. Collections for third parties. Contingent liabilities (General). Guaranties and warranties. Premiums and awards offered to customers. Self-insurance, litigation, claims, and assessments, asset retirement obligations. Presentation and analysis. Questions 1, 2, 3, 4, 6, 8 7, 11 9, 10 12, 5 13, 14, 15 16 17, 18, 19, 20, 22 21, 23 24, 25 26, 27, 28 1, 2, 3 4 5 8, 9 6, 7 10, 11 13, 14 15 12 5, 6, 16 7, 8, 9, 16 13, 16 10, 11, 16 12, 15, 16 14 3, 4 10, 11, 13 5, 6, 7, 12, 14 8, 9, 12, 14 2, 10, 11, 13 9 6, 7 5, 6, 7 7, 8 Brief Exercises Exercises 1, 16 Problems 1, 2 Concepts for Analysis 1 2. 3. 4. 5. 6. 7. 8. 9. 10. 2, 16 3, 4 1, 2 1, 2 3, 4 2 11. 29, 30, 31 17, 18, 19 3 Copyright © 2010 John Wiley & Sons, Inc. Kieso, Intermediate Accounting, 13/e, Solutions Manual (For Instructor Use Only) 13-1 ASSIGNMENT CLASSIFICATION TABLE (BY LEARNING OBJECTIVE) Learning Objectives 1. 2. 3. 4. 5. Describe the nature, type, and valuation of current liabilities. Explain the classification issues of short-term debt expected to be refinanced. Identify types of employee-related liabilities. Identify the criteria used to account for and disclose gain and loss contingencies. Explain the accounting...
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...correlate that with the mind. Let me give you one example of something that is taught in class. Memory is an active system that receives, stores, and recovers information. In order for one to keep a memory for a longer length of time, the memory must pass through the sensory memory, short-term memory, and into the long-term memory. The sensory memory is only able to hold an exact copy of what you may see or hear but only for a couple of seconds. The information stored from a visual memory is called the iconic memory while information stored from hearing is called the echoic memory. However there is a lot of information when you see and hear things. Therefore we have something called selective attention that blocks out what we deem unimportant. An example would be when being in a concert the only thing you may remember is the band; however it would be fairly difficult if you were to try to remember the faces of everyone in the audience. Through selective attention we can filter out what we see and hear into the short-term memory. Short term memory is able to store a small amount of information. However if we do not utilize or rehearse the information, then it becomes lost forever. Example of a short-term memory may be a number to a telephone or a list...
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...Learning and Memory Humans are continually learning, storing and coding raw information that is sent to us from our sensory registers from the outside world. Because of such an overload of stimuli thrown at us, it is vital and necessary to learn as infants and throughout our lives how to store and process this information. We learn to pay attention to some material, while other data is filtered out immediately. Researchers have spent enormous amounts of time studying the different types of memory: short-term memory, long-term memory, procedural memory and declarative memory. Because the only way we survive, evolve and learn new skills and talents is by developing our minds and adapting to the ever changing demands of life. What scientists have discovered is that learning requires attention, coding and storing of past memories and experiences. In order to live healthy and happy lives, we can stimulate and encourage learning throughout our entire lifetime from infancy to late adulthood providing that our brain is biologically healthy and intact. Most important, scientists are now studying what simple changes can be made to stave off such diseases such as Dementia and Alzheimer’s. The only kind of memory that the world has ever been able to agree on is that one which saves occurrences from the past. Even more limiting is a methodical notion in which the procedure that creates memory (learning) is identified by the modification of the actions of an individual who...
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...brain works in regard to how it receives, processes and stores information during various stages of development (Zastrow & Kirst-Ashman, 2009, p.111). These theories have been directed by research conducted on various branches of psychology. Of particular interest is cognitive psychology, which can be defined as a branch of psychology that studies mental processes that facilitate learning, remembering, thinking and perception among other processes (Brown, 2006, p. 6). Previous studies on the different types of memories indicate that various parts of the brains have the ability to store different memories. This is further supported by a number of cognitive theories that discuss the presence of short term memory stores, which temporarily holds information before it is processed into long term memories. Despite the...
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...incentives on the supply of informal support from adult children to their disabled, older parents. This study focuses on one specific form of informal support, co-residence with a disabled parent. I compare changes in co-residence patterns between 1990 and 2000 across groups of middle aged women whose co-residence patterns were arguably comparable, and who experienced very different changes in employment incentives. Results from difference-in-difference models provide support to the hypothesis that increasing employment incentives reduces the supply of informal support to disabled parents. The third paper looks at the effect of education on health status. This paper builds on the extensive research literature on this topic by measuring health in terms of the number of Quality-Adjusted Life Years experienced by individuals over an extended period of time. This measure captures overall health status over time, which is arguably a more important measure than point-in-time measures of specific health conditions or longevity alone. I use changes in compulsory schooling laws to identify the causal effect of education on health. Instrumental variables models provide evidence that the health returns to education are both statistically significant and...
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...material, not just verbal material. Introduction Memory is a very complex and interesting area of psychology. It can take several different forms and is made up of a variety of different cognitive and social processes. As memory is a regularly occurring phenomenon which an individual will use every day, it is important to carry out research into the different aspects of memory to gain a better understanding of it and to be able to manage and control it. There has been a lot of interest in improving memory through organisation. Miller (1956) showed that one way of improving recall from short-term memory is by ‘chunking’ the information as it comes in. This is the process of breaking a large object, such as a phone number down into several smaller sections to make it easier to remember. There has been more work carried out into recall from long-term memory, where items have recently been presented and/or learned. Mandler (1967, cited in Gross, 1996) used a pack of 52 cards with a word printed on its back and asked participants to organise them into seven columns. Half of the participants were also told to try and remember the words, but the other half weren’t. After five trials, they were tested on their ability to recall the words. Participants instructed to just organise the words were able to recall just as many...
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