CHECK THESE SAMPLES OF Three Ways That Create Value for a Firm
...as investors look for other promising alternatives. Growth and profitability are two of the necessary ingredients for increasing value. The suggestion has been made that a way of resolving these conflicts in firms which want to continue to maintain high levels of growth is to consider using more short term debt (Jensen and Meckling 2006; Myers ). However, this constitutes an aggressive financial strategy which has high risks but can also have high payoffs. The debt structure is sometimes seen as a signalling device and so short term debt indicates that the assets are of a high quality (Flannery 1986). Impact of taxation on financial policies and the value of the...
14 Pages(3500 words)Literature review
...of the shareholders’ issue securities when they are overvalued. This is the reason the market discounts the value of the firm in way that it is reflective of any “adverse selection costs”. Myers & Majluf (1984) report that such costs are higher in the case of equity issue as compared to debt issue never making the issue of equity optimal (Autore & Kovacs, 2004). The pecking order theory states that the high growth firms with huge financing needs have high debt financing ratios as their managers are reluctant to new equity issues. Smith & Watts (1992) and Barclay et al (2001) suggest the opposite i.e. they state that the firms exhibiting high growth use...
23 Pages(5750 words)Literature review
...financial management decisions taken over the past three years. Critically appraise your findings detailing any theory used and assumptions made. The unit of analysis is a specific project that the company has been considering in that the value of all expected cash flows is discounted to reflect the company’s cost of investing in the various projects with different financial and dividend decisions. Essentially, the financial officers recommend accepting only projects expected to produce increased cash flows for the company by appraising less tangible areas of investment like the strategic planning process. The gap between the financial appraisal and strategic led the top management of BP to recognize the...
4 Pages(1000 words)Essay
...below.
1. To determine what factors most influence firms to make Mergers and Acquisitions effective.
2. To determine whether those factors are consistent over time cost effectively.
3. To identify what actions considered most appropriate to increase productivity and acceptability of Mergers and Acquisitions.
4. To ascertain whether Mergers and Acquisitions create value to explore a speedy drive for firms.
1-5. Scope and Limitations of the Study
The study's primary objective is to explore the implications of implementing Mergers and Acquisitions within the firms and develop a business case for service development. As part of author's role as a...
40 Pages(10000 words)Coursework
...segments with products created specifically for those segments. Differentiation of product, brand or service is the strategy aimed at creation of unique features valued by customers and perceived as better or absolutely different from the products and services of the competitors. This value added by the uniqueness allows the company to set premium prices. To succeed in differentiation strategy a firm must have such strengths as strong R&D department, highly skilled and creative work teams in all the sectors, perfectly-trained sales personnel, and strong corporate reputation. Firms pursuing customer intimacy would tailor and shape their products and...
12 Pages(3000 words)Essay
.... If the firms have to shell out less payment to the government then it is left with more cash resources for paying to the investors. In short the interest tax deductibility shields the pre-tax profits of the firm.
Source: (Brigham & Ehrhardt, 2010, p.613).
From the above equation it is evident that the value of the levered firm is equal to the value of unlevered firm plus any tax advantage of debt. In the above equation Tc is the rate of corporate tax, Ts is the rate of personal tax on the income earned from stocks and Td is rate of tax on income derived from debt. The argument put forward by Miller is that the rate of tax on stock...
13 Pages(3250 words)Assignment
... and also in creating a clear relationship among the parts. The use of plain color within the course has helped in creating an academic impression. Finally, the lack of images within the course is reasonable, considering that images are only useful in condensing information, whereas the content within the course is of fair length.
Reference
Edlund J. R. and Pomona C. L. (2012). Ethos, Logos, Pathos: Three Ways to Persuade.
Retrieved on June 5, 2012 from:
http://www.calstatela.edu/faculty/jgarret/3waypers.htm.... to an Audience
In an attempt to influence an audience, writers employ a number of strategies in order to elicit a desired reaction from their audience. Among these, as pointed out by Plato, is by appealing to the audien...
1 Pages(250 words)Essay
Throughout his work, Rappaport emphasizes the need to capitalize on long-term growth strategies at the expense of realizing short-term benchmarks.
The writer asserts that those corporations involved in responding to short-term strategies will eventually fail because of dynamics within modern commercial environments. Managers running such companies are obscured about the future prospects of an organization. Inasmuch as they concentrate on maximizing the momentary strengths of a company, they fail to take a glance at emerging opportunities and imminent threats. Since consumer preferences are bound to change and competition intensifies, then short-sighted company executives will have limited choices when trouble arrives.
In order to...
1 Pages(250 words)Essay
...., 2010-Present
Manager
Managed daily operations of a $0.8 million ceiling Insulation Company.
Created an effective marketing campaign along with restructuring the products discounts and pricing resulting in a 75% bid acceptance rate.
Executed new bidding process through the spreadsheets to have more accurate bids. Permitted for the individual job costs tracking and give feedbacks as to crews efficiency with regards to labor hours and material waste.
Supervised and trained work crew in more cost-effective product installation techniques that have minimized labor hours by 40% and material waste by 25%.
United States Rescue Officer, 2005-2010
Manager, (2008-2010)
Data Network Manager- Managed control and command data...
2 Pages(500 words)Assignment
...of criminal activities create a great concern for the people in the community. The people in the community can aid in addressing the security concerns in various ways. Firstly, people can learn to identify criminal activities in the community. Secondly, the people can set up a watch scheme for the local community. This involves collaborating with the security agencies to make communities safer by the provision of information on any suspected crime (Cohn, 2013). Finally, people could enhance their security through active participation with the local security authority. The provision of support to the security authority could improve the community’s security status.
Furthermore, people can aid in the...
2 Pages(500 words)Assignment
