Comments (0) Cite this document
GSK is highly dependent on debt financing with a percentage of 79% to be accurate, which shows the fact that there is a high leverage cost being bore by the management in order to run its business smoothly and efficiently. The management not only takes the short term borrowing…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER98.2% of users find it useful
Read TextPreview


Download file to see previous pages mpany is evident and the company has declared a relatively high dividend of 57p per share in the year 2008 which is a significant improvement as far as last 3 year dividends declared are concerned. All in all, our mathematical method of computing WACC suggests that GSK is highly inclined towards debt financing, which is a prime reason behind the increment in WACC. We also conclude the fact that floating interest rate due to the current economic condition reduces the WACC and also consider the company’s performance which reflects on the net income which ultimately reflects on the dividends declared. It is prime evidence of the fact that the management takes all necessary measures to reduce the cost of doing business which is a major consideration for any and every business.
The operating, investing and financing activities of a company are very handy and useful information for the users of financial infrmation, such as creditors, investors, financial analysts, etc, because these activities change the financial position of the company. Let us now look upon some of the important activities that make some impression on GSK’s financial position.
GSK’s management has adopted sound business strategies in order to ensure smooth and efficient running of its operational activities. These strategies have expanded the cash generation from operations to £ 9,055m in the year 2008 in comparison to previous years. The reason behind this high figure of £9,055 million are the two reclassifications; the cash generated from operations is £106 million lower than that given in GSK’s unaudited or projected accounts issued on 5th February 2009. Also keeping in view that drop-off in liquid investments for the current year has been reclassified from financing activities to investing activities. Some accounting heads that create changes in the trade payables may have been a result of the growth of products that the company introduced. GSK management computes inventories on a ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“CORPORATE FINANCE - ASSIGNMENT Essay Example | Topics and Well Written Essays - 2000 words”, n.d.)
CORPORATE FINANCE - ASSIGNMENT Essay Example | Topics and Well Written Essays - 2000 words. Retrieved from
(CORPORATE FINANCE - ASSIGNMENT Essay Example | Topics and Well Written Essays - 2000 Words)
CORPORATE FINANCE - ASSIGNMENT Essay Example | Topics and Well Written Essays - 2000 Words.
“CORPORATE FINANCE - ASSIGNMENT Essay Example | Topics and Well Written Essays - 2000 Words”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document


Corporate Finance Assignment: Financial Analysis

...? Corporate Finance Assignment Corporate Finance Assignment Board of DirectorsSubject: Financial Analysis Date: 21-07-2012 a) The company’s profitability in the year to 31/12/2011 Income Statement Analysis: I am required to present a report on the profitability of the company International Commitments Ltd. The company in the year 2011 had net sales of € 13,193,000, which seems to show that the company is a large scale company. The cost of goods sold represents 30.7% of the net sales and other expenses comprise around the same of 30.6% of the net sales. The company is incurring large amount of other expenses, the expenses other than the...
10 Pages(2500 words)Assignment

Corporate Finance Assignment ( Questions )

...?CHAPTER Questions Agency problems and Corporate Ownership )Corporate ownership varies around the world. Historically , Individuals have owned the majority of shares in public corporation in the united states , in Germany and Japan , however , Banks , other large financial institution s , and other companies own most of the stock in public corporations . Do you think agency problems are likely to be more or less severe in Germany and Japan than in United States?? Agency problem is less severe in Germany and Japan and the reason for the same is the insider ownership transaction that takes place in US corporations. The Enron scandal and Arthur Anderson case has been the witness of this testimony. If the interest of organisation... and...
6 Pages(1500 words)Essay

Corporate Finance Assignment

...the opposite. Another risk that is present in the financial appraisal of the project is that the company might not have estimated the correct useful life of the equipment. The IT related hardware and equipment are subject to becoming obsolete at a greater pace as compared to the other kinds, so this risk is present. While making an investment appraisal decision, it is imperative to consider the impact of inflation in the future cash flow. The information provided does not include any relevant information about the price inflation over the three year period, which can significantly impact the expected NPV. The director of the company must also consider the sources from which the financing will be obtained for the...
7 Pages(1750 words)Essay

Strategic Corporate Finance ASSIGNMENT 2

...sentiments. In this way, the share prices of Marks & Spencer can be stable at a level of 400 pence. Works Cited Babu, G., 2012. Financial Management. New Delhi: Concept Publishing Company. Baker, H. K. and Martin, G. S., 2011.Capital structure and corporate financing decisions: theory, evidence, and practice. New York: John Wiley & Sons. Berk, J. B. and DeMarzo, P. M., 2010. Corporate finance. 2nd ed. New York: Prentice Hall. Bierman, H., 2003. The capital structure decision. New York: Springer. Brigham, E. F. and Ehrhardt, M. C., 2008. Financial management: theory and practice. 12th ed. New York: Cengage Learning. Eckbo, Bjorn Espen., 2008. Handbook of...
10 Pages(2500 words)Essay

Corporate Finance Assignment

...Corporate Finance There are three keys to selling short. The first key is to buy in while values are low. Secondly, the key is to amass as much property as possible while the values are still low. Thirdly, the final key to selling short is selling off the properties, when the market value rises, for a profit. The key to selling short in any way, shape, or form is to know when to buy into the market. In order to design and implement a strategy starting on May 1, 2007, what will have to be taken into account is perhaps making a chart of what the market will look like in the future year. Imagining we were able to tell the future, we could plot out when would be the best time to buy property based on the...
2 Pages(500 words)Assignment

Corporate Finance Assignment

...Advanced Corporate Finance Mergers and Acquisitions The objective of mergers and acquisitions is to insight the empirical literature in economics as regards the effects of acquisitions and mergers. The subject has far reaching applications for formulation of a policy of competition. The analysis of favorable and unfavorable effects based on the study of stock markets with the reinforcement of accounting on a large scale with studies of data and creating a base for methodology of conduct of interviews or methods with intensive data for ahead of merger as well as after merger performances to study distinctive mergers. Mergers and acquisitions create the potential for strengthening the market as well as technological superiority... ,...
6 Pages(1500 words)Essay

Advanced Corporate Finance Assignment

...Advance Corporate Finance Introduction The whole interest begun on the 25th of November, when Ian Read, who is the Chief of Pfizer approached AstraZenecas chairman, Leif Johansson to request them to discuss about a merger between the two companies. All agreed, and the meeting was scheduled for early the following year, 2014. The two sides of leadership then met on 5th January, 2014, in New York, for what was termed as ‘high level talks. The first proposal by Pfizer hit £58bn or £4661 per share, a price that was declined by AstraZeneca. On 26th April, 2014, Read requests to meet Johansson to initiate fresh talks. Johansson declines to any more talks on a merger. Two days later, Pfizer decides to make its...
2 Pages(500 words)Essay

Corporate Finance - Assignment 01

...Corporate Finance al Affiliation) Decision Making: Based on Exchange Rates Companies strive to maximize utility at the lowest cost possible. The major responsibility for a finance manager is to seek purchasing alternatives with the highest comparative advantage. In this case, the company (based in UAE) required purchasing equipment worth AED50million from a foreign supplier. The supplier gave a quotation for the equipment both in Great Britain Pounds and Eros. In addition, it would cost the company AED 5million to bring the equipment to the required location in the UAE. However, the transportation cost was to be paid to a UAE transportation company. It was prudent, as the...
6 Pages(1500 words)Assignment

Corporate Finance - Assignment 03

...Corporate Finance Task Introduction The company intends to engage in capital expenditure that would require an initial outlay of AED 55 million. The purchase can be made from two different suppliers situated in two different locations (The UK and Europe). As a result, the concept of exchange rate is considered crucial during the purchase. The reason is exchange rates tend to fluctuate from time to time thereby changing the price of goods and services purchased from an international market. On that note, one of the must-do obligations in this assignment is to study the exchange rate movements for AED against Euros and AED against the pounds. The study will be conducted for five days from 23rd December 2014 to 27th December 2014... . The...
6 Pages(1500 words)Assignment

3BM070 Strategic Corporate Finance ASSIGNMENT 2

...., Choi, S., Oh, G. and Jung, W. S., 2008. Hurst Exponent and Prediction Based on Weak-Form Efficient Market Hypothesis of Stock Markets. Physica A: Statistical Mechanics and its Applications, 387(18), pp. 4630-4636. Graham, J. and Harvey, C., 2002. How do CFOs make Capital Budgeting and Capital Structure Decisions? Journal of applied corporate finance, 15(1), pp. 8-23. Koller, T., Goedhart, M. and Wessels, D., 2010. Valuation: Measuring and Managing the Value of Companies. New Jersey: John Wiley and Sons. Lee, C. C., Lee, J. D. and Lee, C. C., 2010. Stock Prices and the Efficient Market Hypothesis: Evidence from a Panel Stationary Test with Structural Breaks. Japan and the World Economy, 22(1), pp....
8 Pages(2000 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic CORPORATE FINANCE - ASSIGNMENT for FREE!

Contact Us