Download file to see previous pages...
Due to high dependency on equity in the capital structure, total cost of capital went quite high (19.63 percent). The required return on asset is 18 percent which is less then cost of capital, so the company’s new project does not seems profitable until and unless the prevailing capital structure is modified.
As per the market scenario in Kuwait, deferent debt instruments where determined to find out which one will be more suitable for the company. It is recommended that company should introduce more debt to reduce the cost of capital. As the market conditions are improving, the operating risk will go down and by enhancing financial leverage management will be able to boost profitability of the company.
The company, Kuwait Cement was established in the year 1968 by Amiri Decree. In 1978 the first phase of cement plant was inaugurated by Sheikh Jaber Al Ahmad Al Sabah which had the production capacity of 1,350,000 tons per annum. The company started production of white cement in the year 1979 and the capacity was to produce 75,000 tons of white cement per year. With passage of time the company’s capacity to produce cement went on increasing and it reached 2,070,000 tons per annum by end 1984. Kuwait cement entered in contract with M/s. PEG – Switzerland for providing consulting services to the project of clinker kiln whose production capacity was 1.8 million. The other services which the company was to provide were management of equipment at Shuaiba port, storage of fuel and conveyor belt management. At different point of time the company formed contracts with many international firms to enhancing the production capacity and to introducing better and advanced technology. With the growing demand of white cement in the market, Kuwait Cement went on increasing the white cement production and by the year 1999 the production capacity reached to 170,000 tons as compared to 75,000 tons
...Download file to see next pagesRead More
This report analyses two aircraft manufacturing firms; Airbus and Boeing. The report is based on a case which mainly revolves around the airline manufacturing industry. The most important players in the airline manufacturing industry are Airbus and Boeing and both are competing against each other.
To achieve this enlightened objective managers of the firms are required to make more considered decisions. Among many avenues of challenging decision making capital investment decisions also require extensive evaluation. Capital budgeting techniques are employed to make assessed investment decisions with quantitative results providing justification for the selection of certain opportunity among available options.
The company wishes to approach the Brazilian market in a distinct way since Brazilians need to experience more than just cars. Thus, it seeks to deliver the best possible customer satisfaction. If Brazilian government agrees to help, the company will need a total amount of $ 600 million US dollars to be functional.
According to the research findings, it can, therefore, be said that the key stages involved in the capital investment decision-making entail identifying investment opportunities, screening investment proposals, analysis and evaluating investment proposals, approving investment proposals, and implementing monitoring and reviewing investments.
Usefulness of Annual Reports
There are several stakeholders of all organizations, including investors, government, banks, creditors and shareholders. Investors are one of the stakeholders that utilize the financial information obtained through annual reports to make investment decisions.
Firms face two main types of risk: systematic risk and unsystematic risk. Systematic risk, otherwise referred to as market risk on the one hand is the risk that a firm faces as a result of movements in the market such as movements in the value of a stock index (e.g., the FTSE100 index); fluctuations in interest rates, fluctuations in currency exchange rates, as well as changes in inflation rates.
To my friend's parents I want to say thank you to you all. Their prayers and blessings serve as a shield towards the tremendous circumstances in life. My supervisor and course tutor has been a great source of motivation and care has helped me sharpen and refine it to the point where I have confidence to put it forward to the community.
The organization has also realized that most health insurers are requesting that physicians first refer patients to therapists with an aim of reducing medical costs. The target department, within the organization,