Capital Structure Essays (Examples)
Study Document
Capital Structure Analysis
… Investment decisions determines the composition of assets held by a firm while financing decisions focuses on the optimal mix of debts and equity (capital structure). An optimal capital structure can be defined as a combination of equity and debt that maximizes shareholders’ wealth or value of a firm. The value of a … “is the present value of expected future cash flows to be generated by the assets, discounted at the company’s weighted average cost of capital (WACC). Generally, the determination of optimal capital structure is a complex decision process involving calculations of various debt-equity ratio. In this paper, the capital structure of Afterpay Touch Group Limited (ATP), FlexiGroup Limited (FXL), and Zip Co Limited (Z1P) will be calculated, theories of optimal capital structure will be discussed and optimal capital structure of ATP will be determined.
Calculation of capital structure
capital structure is described by the relationship between debt……
References
References
Estimating a synthetic rating and cost of debt. (n.d.). Retrieved from http://pages.stern.nyu.edu/~adamodar/New_Home_Page/valquestions/syntrating.htm
Fenebris.com. (2019, August 18). AU. Retrieved from http://www.market-risk-premia.com/au.htmlm
Intelligent Investor. (n.d.). FlexiGroup Limited. Retrieved from https://www.intelligentinvestor.com.au/shares/asx-fxl/flexigroup-limited/financials IntelligentInvestor.com. (n.d.). Afterpay Touch Group Limited. Retrieved from https://www.intelligentinvestor.com.au/shares/asx-apt/afterpay-touch-group-limited/financials
Yahoo Finance. (n.d.). FLEXIGROUP FPO (FXL.AX) Balance Sheet. Retrieved from https://finance.yahoo.com/quote/FXL.AX/balance-sheet?p=FXL.AXhttps://finance.yahoo.com/quote/FXL.AX/balance-sheet?p=FXL.AX
Study Document
Advantages And Disadvantages Of Interrelationships Between Organizational
1. Advantages and Disadvantages of Interrelationships between Organizational Functions and Impact on Organisational structure
Organizational Functions
The functions of an organization take into account the different aspects undertaken by the business including production or manufacturing, marketing, sales, … business including production or manufacturing, marketing, sales, accounting as well as research and development. In accordance to Sherman and Thompson (2019), the organizational structure delineates the relationship and interrelations between the functions of a business and ascertains the manner in which the chain of command operates through … business and ascertains the manner in which the chain of command operates through the various levels. The interrelationship between organizational functions and organizational structure is akin to a flow chart. This is in the sense that an entity can set up its business structure around the organizational functions. However, even if the entity fails to do so, the organizational functions and structure will have……
References
References
Air India. (2019). Board of Directors. Retrieved from: http://www.airindia.in/board-of-directors.htm
Aquinas, P. G. (2008). Organization structure and design. India: Excel Books India.
Burns, T., & Stalker, G. M. (2005). Mechanistic and organic systems. Organizational Behavior, 2, 214-25.
Choo, S., & Bowley, C. (2007). Emerald Article: Using training and development to affect job satisfaction. Journal of Small Business and Enterprise Development, 14(2),339 - 352.
Cichocki, P., & Irwin, C. (2014). Organization design: A guide to building effective organizations. Kogan Page Publishers.
Civil Aviation. (2019). About Us: Organizational Setup. Retrieved from: http://www.civilaviation.gov.in/en/aboutus/orgsetup
Cunliffe, A. L. (2008). Organization theory. New York: Sage.
Cunliffe, A. L., & Luhman, J. T. (2012). Key concepts in organization theory. New York: Sage.
Study Document
Human Capital Needs In An Army Unit
… sometimes affected by the size of the workforce. An inadequate number of personnel contributes to gaps between the existing workforce and the human capital needs of the unit/organization. These gaps can be addressed through hiring an adequate number of personnel as well as employing various strategies toward … employing various strategies toward employee engagement, training/retraining, and organizational adaptability. Your discussion correctly demonstrates that identification of gaps in the workforce and human capital needs should be based on the structure of the Army force structure and unit.
Personnel structure and composition differs between MTOE and TDA units because of differences in their geographical missions and specific tasks. Your Army unit or organization … their geographical missions and specific tasks. Your Army unit or organization finds it easy to identify gaps between workforce on hand and human capital needs of the organization because of its small structure. Being a very small……
References
Reference
U.S. Army War College. (2015, August). 2015-2016: How the Army Runs – A Senior Leader Reference Handbook. Retrieved November 22, 2019, from https://www.g8.army.mil/references/htar_how_the_army_runs.pdf
Study Document
What Business Entity Structure Should Be Used
The company should operate as a C corporation. There are a few reasons for this choice of business structure. As a sole proprietorship, Bob faces a number of challenges, including the reality that his legal downside includes his personal property. Maintaining his … tax bill that she might not be able to pay.
According to the IRS, a C corporation is a separate tax-paying entity. This structure would mean that the company pays taxes directly to the IRS, meaning that Mandy would not have a tax burden based on her … the business to Mandy at a time that brings about the lowest combined tax burden on the transfer – Bob would face a capital gain on an S corporation and so there could be significant timing implications for the transfer. Bob definitely wants to have a succession ……
References
References
IRS.gov (2020) S corporations. Internal Revenue Service. Retrieved April 12, 2020 from https://www.irs.gov/businesses/small-businesses-self-employed/s-corporations
Morah, C. (2020) Accrual accounting vs cash basis accounting: What’s the difference? Investopedia. Retrieved April 12, 2020 from https://www.investopedia.com/ask/answers/09/accrual-accounting.asp
SBA.gov (2020) Selling a small business and succession planning for small business. Small Business Association. Retrieved April 12, 2020 from https://www.sba.gov/sites/default/files/files/PARTICIPANT_GUIDE_SELLING_SUCCESSION_PLANNING.pdf
Study Document
Starbucks
… in total assets, about one-third of which were current assets. The company had minimal leverage, with shareholders’ equity amounting to 80% of the capital structure. In 2009, the growth of the company flatlined, but continued its growth as it came out of the recession. Starbucks now sits with … book value of its assets at $24.156 billion.
One of the big questions is whether the company would make any changes to its capital structure, based not only on its strategy, but on the prevailing financing environment, which included a very long run of rock bottom interest rates. … Starbucks to use debt as its primary mode of financing growth in the past ten years. By 2016, liabilities were 58% of the capital structure and the company had grown its long-term debt significantly. But in the 2018 fiscal year, Starbucks underwent a massive shift in its approach … in the……
References
References
Cannivet, M. (2019) Starbucks’ big stock buyback limits future upside. Forbes. Retrieved October 4, 2019 from https://www.forbes.com/sites/michaelcannivet/2019/08/29/starbucks-big-stock-buyback-limits-future-upside/#26c434067047
Hawley, J. (2019) Who are Starbucks’ main competitors? Investopedia. Retrieved October 4, 2019 from https://www.investopedia.com/articles/markets/101315/who-are-starbucks-main-competitors.asp
Macrotrends (2019) Starbucks. Macrotrends.com. Retrieved October 4, 2019 from https://www.macrotrends.net/stocks/charts/SBUX/starbucks/financial-statements
Marketwatch (2019) McDonalds Marketwatch. Retrieved October 4, 2019 from https://www.marketwatch.com/investing/stock/mcd/financials
Sharf, S. (2013) Starbucks ordered to pay Kraft $2.8 billion. Forbes. Retrieved October 4, 2019 from https://www.forbes.com/sites/samanthasharf/2013/11/12/starbucks-ordered-to-pay-kraft-2-8-billion/#5516b7fa167d
Starbucks 1999 Annual Report. Retrieved October 4, 2019 from https://s22.q4cdn.com/869488222/files/doc_financials/annual/1999/102640_financials2_99.pdf
The Coffee Brewers (2008) With Starbucks closing 600 shops, is the coffee business still lucrative? The Coffee Brewers. Retrieved October 4, 2019 from https://www.thecoffeebrewers.com/starbucks.html
Study Document
Integrated Waveguide Technologies Preparing For A Public Offering
… with the EPS. The dividend distribution policy ought to be stable to ensure investor confidence. Therefore, management faces the tradeoff of adopting a capital budgeting decision to lower dividends and use the resources for new investment, which potentially decreases the stock prices or the undertake borrowing to … pay dividends exclusively are largely becoming extinct. Stock repurchases have been identified to boost earnings per share, a tax-efficient approach of returning excess capital to investors since the stock repurchases incur capital gains tax. In contrast, the dividend income is taxed as ordinary income. Stock repurchases signal a stock undervaluation, which enables the managers not … et al., 2014).
Dividend Policy Theories
Dividend policy literature has produced a diversified theoretical foundation with foundations on the concept of dividend relevance, capital gains, and the tax and transaction cost indifference (Baker & Weigand, 2015). According to Mohanasundari & Vidhya (2016), the founding theories……
References
References
Al-Malkawi, H.-A. N., Rafferty, M., & Pillai, R. (2010). Dividend Policy?: A Review of Literatures and Empirical Evidence. International Bulletin of Business Administration, 5(9), 38–45. https://doi.org/10.12816/0037572
Baker, H. K., & Weigand, R. (2015). Corporate dividend policy revisited. In Managerial Finance (Vol. 41, Issue 2, pp. 126–144). https://doi.org/10.1108/MF-03-2014-0077
Black, F., & Scholes, M. (2010). The effects of dividend yield and dividend policy on common stock prices and returns. In Journal of Financial Economics (Vol. 1, Issue 1, pp. 1–22). https://doi.org/10.1016/0304-405X(74)90006-3
Farre-Mensa, J., Michaely, R., & Schmalz, M. (2014). Payout Policy. Annual Review of Financial Economics, 6, 75–134.
Mohanasundari, M., & Vidhya, P. (2016). Dividend Policy and Its Impact on Firm Value: A Review of Theories and Empirical Evidence. Journal of Management Sciences and Technology, 3(3), 59–69.
Travlos, Trigeorgis, & Vafeas. (2001). No Title. Multinational Finance Journal, 5(2), 87–112.
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Enterprise Risk Management In Wells Fargo During The Pandemic
… “consider both sides of the balance sheet” (Sartor & Dall, 2020). It looks at five components of enterprise risk: 1) unrestricted liquidity, 2) capital structure, 3) operations, 4) capital budgeting risks, and 5) defined benefit plans. Goldman Sachs is an international competitor of Wells Fargo and tends to succeed more than it … embraces and takes risks. It does so knowing that it has strong protections in place, including: an internal rule that poses that all capital at stake must be capital that the firm can stand to lose (i.e., no over-leveraging or playing with capital that would harm the company if lost); another protection is that managers discuss risk management models with staff and make sure lower level ……
References
References
Beasley, M. (2020). How to Leverage ERM Principles to Better Respond to COVID-19-Related Risks. ERM Professional Insights.
Derysh, I. (2020). Watchdog questions why Wells Fargo reported giving only one large PPP loan to a Black-owned business. Retrieved from https://www.salon.com/2020/07/22/watchdog-questions-why-wells-fargo-reported-giving-only-one-large-ppp-loan-to-a-black-owned-business/
English, C. (2020). Wells Fargo Forced to Cut Its Dividend After Fed Stress Test. Here’s What Other Banks Did. Retrieved from https://www.barrons.com/articles/wells-fargo-forced-to-cut-its-dividend-after-fed-stress-test-51593467664
Hall, J. (2007). Internal Auditing and ERM: Fitting in and Adding Value. Retrieved from https://global.theiia.org/about/about-the-iia/Public Documents/Sawyer_Award_2007.pdf
Kaplan, R. & Mikes, A. (2012). Managing risks: A new framework. Harvard Business Review, 3.
Lewis, M. (2010). The Big Short. NY: W. W. Norton.
Lundqvist, S. (2014). Abandoning Silos for Integration: Implementing Enterprise Risk Management and Risk Governance. Lund University.
Morgenson, G. (2020). More Wells Fargo customers say the bank decided to pause their mortgage payments without asking. Retrieved from https://www.nbcnews.com/business/personal-finance/more-wells-fargo-customers-say-bank-decided-pause-their-mortgage-n1234610
Study Document
Family Business Reliance Industries Ambani Family
… than in professionally managed firms (p. 709). The reason for this is that family-owned firms and heir-managed firms are more parsimonious with their capital and tend not to be profligate, as the money they spend is money that comes out of their own pocket rather than out … pay for labor and resources. As Sraer and Thesmar (2007) show, family owned companies “pay lower wages, even allowing for skill and age structure” while also making a strong effort to “smooth out industry shocks and manage to honor implicit labor contracts” (p. 3). Thus, family firms … the company and involved in the industry, and to preserve their bottom line they tend to “employ more unskilled, cheap labor, use less capital, pay lower interest rates on debt and initiate more profitable acquisitions” (Sraer & Thesmar, 2007, p. 3). Heirs and family run businesses are … founding family have greater value,……
References
References
Burkart, M., Panunzi, F. and Shleifer, A., 2003. Family firms. The journal of finance, 58(5), pp.2167-2201.
Daily, C.M. and Dollinger, M.J., 1991. Family firms are different. Review of Business, 13(1-2), pp.3-6.
McConaughy, D.L., Matthews, C.H. and Fialko, A.S., 2001. Founding family controlled firms: Performance, risk, and value. Journal of small business management, 39(1), pp.31-49.
Ray, A., 2020. Reliance to pay twice. Retrieved from https://www.livemint.com/news/india/reliance-to-pay-twice-to-those-employees-who-earn-below-rs-30-000-11585033829993.html
Reliance Industries, Limited, 2019. Retrieved from https://www.ril.com/DownloadFiles/Subsidiaries%20and%20major%20Associates%20of%20RIL.pdf
RIL Annual Report, 2019. Retrieved from https://www.ril.com/getattachment/2b3a5223-b9a3-4bc1-b9b6-99f9b1e85a07/Financial%20performance%20for%20the%20year%20ended%2031%20Mar,%202019.aspx
Sraer, D. and Thesmar, D., 2007. Performance and behavior of family firms: Evidence from the French stock market. Journal of the european economic Association, 5(4), pp.709-751.
Study Document
Army Organization Analysis Equal Opportunity Program
… the heterogeneity of its personnel pool: which amounts to one and a half million individuals (United States Army, 2014). A “strategy for human capital,” equal opportunity is employed as a rational means of remaining competitive in terms of its outputs, and also in terms of its human … that…[break]…levels of culture in an organization: artifacts, espoused beliefs and values, and also the basic underlying assumptions. Artifacts include the “visible and feelable structure and processes,” which are fairly easy to discuss, as well as the “observed behavior” that is being called into question (Schein, 1992, p. ……
References
References
“The Army Values,” (n.d.). Retrieved from: https://www.army.mil/values/
Daft, R. L. (2016). Organization Theory & Design (12th ed.). Boston, MA: Cengage Learning.
Morgan, G. (2006). Images of organization. Sage Publications, Inc
Schein, E. H. (1992). Organizational Culture and Leadership. 2nd ed. San Francisco: Jossey-Bass Publishers.
United States Army (2014). Army equal opportunity program. Retrieved from: https://www.army.mil/standto/archive_2014-03-21/
Study Document
Poverty And Education The Problem And The Solution
… improve their literacy skills, prepare better for kindergarten and perform better when they get to kindergarten. There is a need to look at structure as a problem when designed literacy intervention problems instead of the often used student-as-problem approach. Looking at structure-as-problem provides new ideas that can help improve reading and literacy. It is essential to re-design and pedagogical repertoires to ensure teachers become more …
Researchers Compton-Lilly and Delbridge (2019) recently investigated the matter of how poverty affects children's ability to learn. The researchers utilized Bourdieu's theory of capital and statistics from longitudinal studies to investigate how poverty affects learning for two students from a poor urban community. In the study, the … manner in which poverty affected the ability of poor parents to support their dependents in school. The researchers also particularly investigated how social capital and cultural capital can be leveraged in a bid to help……
References
Bibliography
The Problem
Compton-Lilly, C., & Delbridge, A. (2019). What Can Parents Tell Us About Poverty and Literacy Learning? Listening to Parents Over Time. Journal of Adolescent & Adult Literacy, 62(5), 531–539.
Dickerson, A., & Popli, G. K. (2016). Persistent poverty and children\\\\\\\\\\\\'s cognitive development: evidence from the UK Millennium Cohort Study. Journal of the Royal Statistical Society: Series A (Statistics in Society), 179(2), 535-558.
Hampden-Thompson, G., & Galindo, C. (2017). School-family relationships, school satisfaction, and the academic achievement of young people. Educational Review, 69(2), 248–265.
Thompson, K., Richardson, L. P., Newman, H., & George, K. (2019). Interaction Effects of Socioeconomic Status on Emerging Literacy and Literacy Skills among Pre-Kindergarten and Kindergarten Children: A Comparison Study. Journal of Human Services: Training, Research, and Practice, 4(1), 5.
The Solution
Borre, A., Bernhard, J., Bleiker, C., & Winsler, A. (2019). Preschool Literacy Intervention for Low-Income, Ethnically Diverse Children: Effects of the Early Authors Program Through Kindergarten. Journal of Education for Students Placed at Risk (JESPAR), 24(2), 132–153.
Comber, B., & Kamler, B. (2004). Getting Out of Deficit: Pedagogies of reconnection. Teaching Education, 15(3), 293–310.
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