Nobody downloaded yet

Financial pros and cons - Essay Example

Comments (0) Cite this document
Summary to essay on topic "Financial pros and cons"
and discusses the various financing options available. Further, it discusses the financial viability of a new production plant and the hurdle rates at which the project can be accepted. The essay also…
Download full paper
Financial pros and cons
Read TextPreview

Extract of essay "Financial pros and cons"

Download file "Financial pros and cons" to see previous pages... Operating margin: The Company has a better operating margin in 2003 of 19.60% over the previous years. This indicates the company is very efficient in managing its operating expenses to generate revenue.
Return on Capital Employed: The Company have earned handsomely for its investors as return so far on its capital employed stands at approximately 25% which is far more than the cost of capital,
Let us write or edit the essay on your topic "Financial pros and cons" with a personal 20% discount.. Try it now
assuming it to be at 10%.
Debt Equity ratio: This ratio identifies the solvency of the firm by measuring the leverage position of a company. Higher the ratio the more leverage a company is and vice versa and hence higher financial risk. Superior Living Inc. has a very low debt equity ratio i.e. 0.025 for 2003, which indicates the company has a very low financial risk as a result it will be very easy for the company to raise debt in the market and banks would be willing to provide loans to the company without much hassle.
Raising money by going public indicates accepting money from investors in exchange of ownership and control of the company without the obligation of paying back the money. The company as per its convenience benefits the investors by paying dividend from time to time. This sounds like easy money for the company but the flip side is that the ownership and control over the company would be foregone for the amount invested via equity financing. In the case of Superior Inc. the company is comfortably placed in terms of book debts. The debt equity ratio very low which means the company has not used debt to the extent it should have used. Generally the ideal debt equity ratio should be 1:2 but for Superior it’s around 1:40. Therefore, the prudent course of action for Superior Inc. is too raise capital by debt financing route which also brings in tax advantage as interest paid on debts is deductible from profits and dividend paid on equity cannot be deducted from profits. Debt ...Download file "Financial pros and cons" to see next pagesRead More
Cite this document "Financial pros and cons"
  • APA
  • MLA
  • CHICAGO
(“Financial pros and cons Essay Example | Topics and Well Written Essays - 1000 words - 1”, n.d.)
Retrieved from https://studentshare.org/miscellaneous/1576016-financial-pros-and-cons
(Financial Pros and Cons Essay Example | Topics and Well Written Essays - 1000 Words - 1)
https://studentshare.org/miscellaneous/1576016-financial-pros-and-cons.
“Financial Pros and Cons Essay Example | Topics and Well Written Essays - 1000 Words - 1”, n.d. https://studentshare.org/miscellaneous/1576016-financial-pros-and-cons.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC "Financial pros and cons"
Financial pros and cons
Further, it discusses the financial viability of a new production plant and the hurdle rates at which the project can be accepted. The essay also discusses the financial pros and cons of going public and finally recommends the financing option the company should adopt based on sound financial principles.
4 Pages(1000 words)Essay
Acquiring degree online:the pros and cons
All too often, people put off their educational goals because they simply do not believe that they have enough time to devote to it, or would have to take valuable time away from the family in order to do so.
6 Pages(1500 words)Essay
Pros & Cons: Privatizing Jails and Prisons
The basic motive of this paper is to show all the factors that are causing an inflationary shift in the numbers of inmates, a pattern projected to continue into the foreseeable future. These factors include the recent emphasis placed on controlling illegal immigration, the crackdowns resulting from this lead to the swelling up of correctional facilities.
4 Pages(1000 words)Essay
Quantitative Easing (Pros and Cons)
Most governments feel that asset purchases provide additional stimulus to nominal spending and this is the important aspect in reducing the level of inflation in a country. While this may be true, economist is still skeptical on the effects of such a move on asset prices, the expectation of the public and the availability of credit for a stable economy.
5 Pages(1250 words)Essay
Hybrid Cars Pros and Cons
There would be less pollution, including noise pollution, and batteries would function as a viable alternative or supplement to oil. Families, businesses, and countries would save money and competition for oil would be less intense. What sounds too good to be true, however, often is too good to be true.
4 Pages(1000 words)Essay
Pros and Cons of Globalization
With this phenomenon, trade in various countries has been liberalized and businesses as well as investment funds moved across domestic markets to the international markets ("Investopedia"). According to economists, this term has come into common usage since the 1980s in light of the technological advances that have facilitated the convenience and speed of conducting international transactions in terms of trade and financial flows ("Globalization: Threat or Opportunity" 2000).
2 Pages(500 words)Essay
HPV Pros and Cons
The low-risk viruses can cause mild Pap tests abnormalities or genital warts. HPV also spreads across via sexual contact, because the infected individual rarely has any symptoms, this disease can be passed unintentionally to
3 Pages(750 words)Essay
Euthanasia(Assisted Suicide) Pros and Cons
which living feels extremely painful for the patient, so the patient chooses death over life in an attempt to permanently escape the unbearable pain. In other cases, euthanasia is given to old patients who have gone into comma and have remained in that state for years. This
2 Pages(500 words)Essay
Keystone Pipeline: Pros and Cons
If constructed, the pipeline would run 2000 miles from Alberta, Canada to Texas in the United States of America (Kadrmas, Lee & Jackson, Rooney, 2009). The keystone Pipeline is expected to move
4 Pages(1000 words)Essay
Pros and Cons of Tariffs
This essay discusses that the government use tariffs to enable it get revenue and fund its projects. Tariffs also allow the government to control and limit harmful and outdated goods from entering the country. They also minimize competition and allow local producers to grow. However, tariffs can be disadvantageous since they can discourage specialization and production.
5 Pages(1250 words)Essay
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 Financial pros and cons for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • Miscellaneous
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us