Capital Structures
Essentially, there are really only two ways in which organizations can raise money -- debt or equity. The core of this comes down to cash flow for each type of financing. A debt claim, for instance, allows the holder to a set of cash flow, typically principle and interest; an equity claim entitles the holder to any leftover cash after meeting all other claims. Secondly, debt has prior claim on cash flow and assets. This complicates the matter of the way debt is managed and analyzed when looking at different industries. For instance, debt as a percentage of the market value of equity in an airline would be different than one in say, electronics -- all dependent upon a variety of inventory and supply/demand, price elasticity ratios.
Organizations that have high debt-equity ratios seem to be the ones that have longer term, or higher cost-based services; or those that are more fleeting and seasonally driven. Production and marketing costs figure...
Capital Requirement and Risk Behavior Arab African International Bank Midan ElSaray El Koubra, Garden City Caoro The research will mainly dwell on the capital requirements and risk behavior of banks, more in particular the credit risk. The purpose of this research is to identify and analyze the relationship between capital requirements and the risk behavior of banks in Egypt more in particular the Arab African International Bank, which is the case study for this
Overproduction In a capitalist economy, production is encouraged by the profit motive, not necessarily need. Prior to the capitalist economy, in the agrarian economy, production was roughly in line with need. The reason for this was the high costs -- capital, time and labor -- that were associated with the production of goods. These high costs ensured that production was largely limited to what was needed, or for what there was
Social Capital in Educational Literature" describes two competing theories of social capital. Bourdieu's theory, postulated in the late 1980s, they report as dealing with the way in which class status provides a sort of collective capital, and in which "essentially institutionalized relationships of mutual acquaintance and recognition" provide for the reproduction of class standing in the next generation and its support within the present generation. In general, it seems
Racial Capitalism: How Slavery Shaped American Economics and Capitalist Structure and became the Precursor of the Civil War Introduction It was William Henry Seward’s (1858) belief that “the very constitution of the Democratic party commits it to execute all the designs of the slaveholders, whatever they may be.” In other words, the Democrats of the 19th century were firmly in the pocket of slave owners—agents of the slave system. Seward represented the
As a consequence, investors may suffer. Importance of the Study It is necessary and pertinent to discuss the importance of any study, and this particular study is important to many people across many countries. Not only does it have importance for people who are trusting people with their pension and hedge funds in Germany, but it also has importance for people who are considering a career working with these funds and
While the first chapter was brief, it is important to explain what will be studied and then move forward into the literature review. In Chapter 2, the literature review provides a review of academic literature by way of journals and textbooks. This information is placed into separate sections which allow for ease of understanding. An introduction is made to capital structure, and information is given on the Indian capital structure
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