...The Capital Structure of Nicci’s Pizza Palace September 13, 2011 The Capital Structure of Nicci’s Pizza Palace A company is funded by debt, equity, or retained earnings. The mixture of debt and equity is the company’s capital structure. There are four factors that influence capital structure; business risk, tax position, financial flexibility, managers, growth rate, and market conditions. Management’s decisions concerning capital structure should be geared toward maximizing the intrinsic value of the company. This value is the present value of its expected future free cash flows (FCF) discounted at its weighted average cost of capital (WACC). Business risk is the basic risk of the company's operations (EBIT), excluding debt. It raises the question how well can a company’s operating income be predicted? There are several unknown variables that can assist in answering this question. The product for example, has a cost associated with its’ creation. Then there is the uncertainty of how much to charge for it, demand, operating leverage, etc. The general rule is: the greater the business risk, the lower the optimal debt ratio. Operating leverage is the use of fixed costs rather than variable costs. It is a measure of whether a company is getting value for its costs. It “can be a very powerful thing. With a cost structure geared toward a high proportion of fixed costs and few variables in the mix, strong sales almost automatically translate into higher profit growth. Companies...
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...Case Study: PizzaPalace’s Capital Structure Made by A. C a. Provide a brief overview of capital structure effects. Be sure to identify the ways in which capital structure can affect the weighted average cost of capital and free cash flows. The capital structure decision change the value of the firm either through the the free cash flow or the cost of capital. V = ∑ ∞ t=1 FCFt (1 + WACC)t With FCF= NOPAT-change in ( NOWC+NFA) WACC= wd (1-T) rd + wers An additional debt has an effect on WACC and FCF: On WACC: -debt increase the cost of stock rs as the stockholders require a higher return due to the risk associated with additional debt -debt reduce the tax paid by the company as the interest is tax deductible -debt increase the risk of bankruptcy so debtholders will require a higher promised return rd ***low taxes Vs high cost of equity,high cost of debt => uncertain effect on WACC On FCF: -the probability of bankruptcy increases and generates direct costs ( legal fees,fire sales..) and indirect costs: lost customer s( NOPAT decreases) , reduction in productivity of employees , and reduction in credit offered by suppliers ( A/P decrease so NOWC increase ) - bankruptcy risk affects agency cost : decrease them bu reducing wastful spending And increase them by causing the manager to be too risk averse: underinvestment...
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...brief business plan that highlights the financial, marketing, and organizational aspects. Now that you have identified several key components of your business, recommend how you would approach the first six months of operations. The name of the company is D-I-Y Pizza Palace. The origination of the name would be a self-explanatory approach to the business. D-I-Y (Do It Yourself) Pizza Palace will be a fun family oriented establishment that would allow its patrons to create their own pizza with numerous fresh veggies and toppings as options. Financial Aspect The startup costs for the business will be financed by personal savings and a close circle of family and friends who will serve as silent investors (no more than 4). These costs will include: building rental, purchasing of equipment, insurance, food, furniture (tables/chairs), supplies, etc. I will have enough funding to cover the first 6 months of rent, this will aid in my focus being more on building the brand and expanding customer bases without fretting over rent expenses. Marketing Aspect The marketing strategy describes the market’s need for the item and the way the business will fulfill it (Kurtz, 2012). The target audience for D-I-Y Pizza Palace is broad, I want to attract families, and therefore the ages can range from children to adults. My ideal location is within 1 mile from the most populated YMCA in the city. Families go the YMCA to participate in various activities and work out, having a place nearby...
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...Pizza is a flatbread generally topped with tomato sauce and cheese and baked in an oven. It is commonly topped with a selection of meats, vegetables and condiments. The term was first recorded in the 10th century, in a Latin manuscript from Gaeta in Central Italy. In 2009, upon Italy's request, Neapolitan pizza was safeguarded in the European Union as a Traditional Speciality Guaranteed dish. The Associazione Verace Pizza Napoletana is a non-profit organization founded in 1984 with headquarters in Naples. It promotes and protects the "true Neapolitan pizza". Pizza is sold fresh, frozen or in portions. Various types of ovens are used to cook them and many varieties exist. Several similar dishes are prepared from ingredients commonly used in pizza preparation, such as calzone and stromboli. It is a popular fast food item. Etymology The origin of the word pizza is uncertain. The term "pizza" first appeared "in a Latin text from the southern Italy town of Gaeta in 997 AD, which states that a tenant of certain property is to give the bishop of Gaeta duodecim pizze every Christmas Day, and another twelve every Easter Sunday". Suggested etymologies include: The Ancient Greek word πικτή, "fermented pastry", which in Latin became "picta", and Late Latin pitta > pizza. Compare Greek pita bread and the Apulia and Calabrian pitta. The Ancient Greek word πίσσα, "pitch", or pḗtea, "bran" . The Italian word pizzicare meaning "to pluck", which refers to pizza being plucked quickly...
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...impulse to learn and build on her knowledge. The novella also states that Queen didn’t like being contradicted, and if she came across any reading that wasn’t in line with her thoughts and actions, she used to lose her patience at it. Her lack of interest in reading can be judged by the incident when Norman, a servant sarcastically remarked about her reading sense by stating that the book ‘My dog Tulip’, must be comprehended by the queen to be about a dog. This can further be reinforced by the anecdotes about Henry James and Jean Ganet. However, over the course of time she developed a strong insight into reading. It all sprung off after the queen felt obliged to borrow books from a City of Westminster Mobile Library outside the Buckingham Palace. She was guided by Norman, a former kitchen boy and an...
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...Central government is in charge at a national level, it is positioned in London where the houses of parliament and the House of Lords have many different types of responsibilities. One of their responsibilities is to protect the whole country at a national level. The good thing about this responsibility is that it will make our country a safer place to live in by creating new laws and policies which will help protect the people either from drink/driving laws or smoking ban where they keep you from harm. The bad thing about this responsibility is only a selected few hundred MPs can make the choice and even through the people in the House of Commons are voted in by us, they may not do what is in our best interest and will vote on their principles and beliefs and they could have a bias opinion. An example would be the House of parliament and when they are in session they discuss lots of different issues and reports and in front of the speaker. Our country signs treaties with other countries so we can make deals with each other which are friendly and to help keep the peace and so we can be allies with each other this is also another responsibility. The good thing about this responsibility is that it will keep peace between our countries and there is no fighting going on and the less likely chance we will go to war where there will be death caused by bombs, gunshot wounds and a great deal of injury. In 1992, the UN sent more than 10,000 British troops over to Yugoslavia to help...
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...then a prison. Now it is a museum. St. Paul's Cathedral is very large and fine. It was completed in 1710. The famous English architect Christopher Wren planned and built St. Paul's Cathedral. If the City is the business part of London, Westminster is the centre of administration. We can see the Houses of Parliament there. It is a beautiful building with two towers and a very big clock called Big Ben. The Houses of Parliament stand in Parliament Square. Westminster Abbey is opposite the Houses of Parliament. Many great Englishmen were buried in Westminster Abbey. To the west of Westminster Abbey you can see Buckingham Pa-lace. It is a royal residence. The ceremony of the chan-ging of the guards which takes place in front of Bucking-ham Palace is of great interest to the tourists. Rich people live in the West End. The best and most expensive clubs, restaurants and theatres, beautiful houses and parks are there. The East End — the district of plants, factories, slums and docks — is for the working people. London is unlike any other city in the world. It has rather wide streets but low houses. It looks very grey because there is so much rain and fog there. Only buses and pillar-boxes are red. This city has never been planned and it has many parts which are different from each other. Перевод текста: London Yesterday I watched a great cartoon "Hakuna Mathata". I liked...
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...The central government of the UK is based in at the Palace of Westminster in London. It contains the major central political institutions of the UK, the House of Commons and the House of Lords. Together with the ruling monarch, these three institutions are known as Parliament. The central government is the layer of government that operates across the whole country. It is usually located in the country's capital city and it has very specific responsibilities that no other level of government is able to do for example; signing treaties with other nations, making new laws and defending the nation. A proposed new law is called a bill. Bills must be agreed by both Houses of Parliament and receive Royal Assent from the Queen before they can become Acts of Parliament which make our law, The good thing about this responsibility is that it will make our country a safer place to live in by creating new laws and policies which will help protect the people either from drink/driving laws or smoking ban where they keep you from harm. The bad thing about this responsibility is only a selected few hundred MPs can make the choice and even through the people in the House of Commons are voted in by us, they may not do what is in our best interest and will vote on their principles and beliefs and they could have a bias opinion. An example would be the House of parliament and when they are in session they discuss lots of different issues and reports and in front of the...
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...Journal #1 In my opinion, I think that Louis XIV would be a better ruler to live under compared to his grandson and Marie Antoinette. The Sun King was successful at his ability establish a stable and powerful hold over his country through absolute monarchy. Meanwhile, Louis XIV failed to do so and lost his head as a result. In addition, Louis XIV knew how to retain and maintain power, especially over the nobles. The very act of establishing Versailles as a seat of government control forced the nobles to come to him and seek his support. He was adept at playing the nobles off against each other, and was practically the archetype of absolute power. Although he certainly made mistakes such as his foreign wars, he kept a tight rein on his nobles. This way, he was not affected by outside sources trying to sway his decisions. Thus, Louis XIV was a much more powerful king that was never at risk of losing his throne and his crown. Therefore, I would prefer to live in a country with absolute monarchy and have a king that was completely in power, rather than Louis XVI with his unstable shaky influence. Louis XIV was a good example of a political leader while Louis XVI tried to avoid politics as much as possible. When Louis XVI said "I am the state," he lived as if he were. While Louis XIV spent excessive amounts of money on his military, he could justify that decision for it was spent in order to fund for his wars. Marie Antoinette and Louis XVI spent large amounts on extravagant...
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...* Versailles * Second gate * Guards stand by to secure firearms, and that people are properly dressed * Swords and hats can be rented at entrance * Caterers * Laid table for royal family * Windows- from secon room * Can see hall of mirrors * Room called the Buzai? * Take shape from circular window * Tastes youth be ever present without him * Bed Chamber * Royal bed protected by guilded building * Personification of france watches over sleeping king * The royal bed is the symbol of power * Center of bed room * All who pass have to bow before it * Ritual * Ceremony of awakening * Ceremony of Grand Awakening * Constants stream of coming and goings * 100 people buzzingle in and out * ambassadors, parliamentary officials, bishops * to be seen and gossip * Louis the XIV chooses self portrait to hand on too of door * Painting of St .John, St. Mathew, St. Marc * Royal office * Louis XV transformed this room * Symbol of septor and hand of justice * 1682-1789 Versaille is seat of absolute monarchy * King rules alone * Demands consistency and obedience * Summons counselors and documents * Architects also summoned here * Originally hunting lodge ...
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...932). Increased nationalism in England also sparked a revival of Gothic architecture. After the Houses of Parliament burnt down in London (1834), the task of redesign the new building was assigned to Charles A. Barry and Augustus W. N. Pugin. Their Gothic design of the new Houses of Parliament make it a prime example of Victorian architecture today (Tansey 955). It is important to recognize that Romantic architecture was not only a return to the past. Modern technologies and materials, as well as non-European influences, also played a role. (Sporre 495-98; Tansey 956). One example is the Crystal Palace designed by Sir Joseph Paxton for the Great Exhibition in London (1851). Made of iron and glass, it was designed to be rapidly put together and taken apart. Another noted architectural example of this period was John Nash’s Royal Pavilion in Brighton (1815-18). The design of this palace was greatly influenced by Islamic and Eastern architecture (Flynn; Sporre 495-98; Tansey 956, 1014). Victorian architecture was both a rediscovery of the past and the precursor of Modern architecture. Some buildings embodied both of these characteristics. The Houses of Parliament and the Crystal Palace’s outside architecture had little to do with their functions and internal design. Their architects were revolutionizing the world of architecture and ushering in the Modern era (Sporre 495-98). Works Cited Tansey, Richard G., and Fred S. Kleiner. Gardner’s Art Through The Ages. 10th ed. Orlando:...
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...REVIEW OF EXHIBITIONIn Fine Style: The Art of Tudor and Stuart Fashion (London, The Queen’sGallery, Buckingham Palace, 10 May–6 October 2013). Catalogue In Fine Style:The Art of Tudor and Stuart Fashion, ed. Anna Reynolds. London: Royal Collec-tion Trust, 2013. 300 pp. illus., over 320 colour. £45.00. ISBN: 978-1905686445(hb).‘In Fine Style: The Art of Tudor and Stuart Fashion’, described as the Royal Collec-tion’s first exhibition of royal fashion, presented the visitor with an impressive numberof Tudor and Stuart portraits, most of which were drawn from the Queen’s Collection.Over sixty pictures, some very well known and others less so, were used to exploreclothing worn by the English monarchy and nobility between 1485 and 1714. Thevirtue of selecting paintings spanning approximately 230 years of English and thenBritish history, ranging from Henry VII to Queen Anne, made it possible to focussharply on how royal fashions changed over a significant period of time. And thesewere turbulent times that saw the rise and fall of two royal houses, queens regnant aswell as kings, a minority, a regicide, and the Restoration. Against this context, maleclothing evolved from the doublet and hose worn with a long gown (favoured by HenryVII), to being accompanied by a short, semi-circular cloak worn nonchalantly on oneshoulder (by the reign of James I), to the coat, vest and breeches. This forerunner tothe modern three-piece suit was introduced by Charles II and became really estab-lished under...
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...The Summer Palace (Chinese Pinyin: Yí Hé Yuán), northwest of Beijing, is said to be the best preserved imperial garden in the world, and the largest of its kind still in existence in China. It is only a short drive (15 km) from central Beijing but seems like another world. Most people find they need to spend at least half a day here, there’s so much to see and enjoy in the gardens, buildings, and waterways. You can take a 10 minute boat-ride to see an island temple, sit and watch a traditional Chinese performance in the restored theatre (one of the three great traditional theatres in China), or explore the recreated traditional shopsby the river. The story goes, that former Emperors, or their concubines, used to enjoy 'pretend-shopping', as normally everything was bought for them. Just wandering round enjoying the different buildings and courtyards, or just taking in the views from one of the many vantage points is a pleasure. A visit involves plenty of walking, so wear comfortable shoes and protection from the weather (sun or rain) and be prepared to be enchanted. There are many pleasant spots along the way to pause and enjoy this much-loved summer retreat, as well as places to enjoy cool drinks and snacks. The Summer Palace (Chinese: 颐和园; pinyin: Yíhéyuán), is a vast ensemble of lakes, gardens and palaces in Beijing, China. It serves as a popular tourist destination and recreational park. Mainly dominated by Longevity Hill (万寿山; 萬壽山; Wànshòu Shān) andKunming Lake (昆明湖; Kūnmíng...
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...Louis the great AKA the sun king believed in absolutism. This meant the king was chosen by God. So how dare you ever dispute a king. The sun king had several wars that changed the dynamic of France.He wanted to weaken the Hapsburg dominance His wars would change the perceived balance of power. The Hapsburg was dominating Europe during this time. Hapsburg was in Spain,Austria,Netherlands, just to name some places.Louis wanted to replace the powers of the Dutch AND THE Hapsburg..Louis would negotiate with King Charles of England,Scotland for money needed and King Charles would share the naval power.This would be called the Secret Treaty of Dover. Louis had a army of over 400,000. During this time an army of 400,000 Of just setting around...
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...Did you know that King George III was not expected to live when he was born? King George III was born on June 4, 1733 in London, England and he died on January 29, 1820 in Windsor, England. In this paper you will learn about King George III’s childhood, how he impacted the world, and other interesting facts about him. In this paragraph you will learn about King George III’s childhood. When he was born, the small boy was not expected to live so he was baptized the same day. At a young age he was educated by private tutors and he could speak many languages. He could speak German, English, and soon he would learn French. George was shy when he was a kid. John Stuart and Earl Bute helped him act more like a king by teaching him about...
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