Debt Essays (Examples)

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Market Returns

Words: 699 Length: 2 Pages Document Type: Essay Paper #: 84701079

Capital

There are a number of financing options for small business. The two major categories are debt and equity. Debt comes in a variety of forms. Bank loans are common. Credit cards are used sometimes by startups; bond issues by larger firms. Debt is an attractive option for a number of reasons. Debt has a lower cost of capital, which is beneficial to many small businesses. As well, debt financing allows the owners of the company to maintain control, and this is usually considered to be quite important for many small businesses in particular. The downside to debt is that the company is then obligated to pay that debt back before it can reinvest profits back into the business - debt repayment is more important than reinvestment in terms of financial obligations (Parker, 2012).

Equity comes at a higher cost than debt. Equity is also means that some control is…… [Read More]

References

Mahmood, D. (2013). How to choose the right investment banker. Inc. Magazine. Retrieved May 31, 2014 from  http://www.inc.com/david-mahmood/how-to-choose-the-right-investment-banker.html 

Parker, T. (2012). Small business financing: Debt or equity? Investopedia. Retrieved May 31, 2014 from  http://www.investopedia.com/financial-edge/1112/small-business-financing-debt-or-equity.aspx
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Macro Vision of Jefferson vs

Words: 2374 Length: 9 Pages Document Type: Essay Paper #: 12612725



Hamilton's Arguments in Favor of the Debt and the Bank

Jefferson would have no position against witch to argue had not Hamilton made the argument for the national debt so eloquently and so forcefully. Essentially, Hamilton and Jefferson entirely disagreed on the proper course to put the nation on a prosperous track. The greatest issue was whether the multitudinous colonial debts piled up by the individual colonies during and since the war with England should, in the spirit of e pluribus unum, be taken on by the federal government.

Hamilton postulated that the assumption of these colonies' - now states' - debts was essential to make the nation a credible, operating reality, deserving of trust in seeking credit from other countries. Also, Hamilton felt that "monied men" - those wealthy Americans who had made the loans to the state governments and how had in many instances not been paid yet…… [Read More]

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Long-Term Financial Planning FedEx Corporation FedEx Corporation

Words: 1117 Length: 4 Pages Document Type: Essay Paper #: 80308048

Long-Term Financial Planning

FedEx Corporation

FedEx Corporation was established in 1971 and the company has four distinct business segments that include FedEx Express, FedEx Ground, FedEx Office and FedEx Freight. Over the years, the company has obtained 6-year of CAG (compounded annual growth of 5%). However, the company is likely to obtain similar CAG of 5.9% over the next 8 years based on current economic environment. (FedEx Corporation .2010.

The WACC (weighted average cost of capital) is the average interest rate that a company should pay in order to secure a project. Moreover, WACC is the average rate of return that a company must earn from its current assets to satisfy investors, shareholders and creditors. Since FedEx Corporation is always trying to create value for shareholders, the paper calculates the WACC of the FedEx to evaluate the company ability to generate returns from its assets.

Estimation of WACC of the…… [Read More]

Reference

FedEx Corporation (2010. Annual Report.USA.
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Political and Economic Imlications of

Words: 1677 Length: 6 Pages Document Type: Essay Paper #: 6928414

The newly independent states were generally rated according to high level of political, economic or social risk (not entirely untrue), which meant that the levels of interest were generally extremely high. Even more, the sums paid for interest would generally surpass the actual funds that had been received. This meant that, instead of focusing the country's resources on development and internal projects, most of it had to be spent paying off debts which were not even viable and extremely costly.

On the other hand, from an international perspective, international debt is something fundamentally essential to the financial markets. Money is made to circulate and move around, which means that entities need to be connected to the financial markets, borrow on the open markets and use that money to create added value and generate more cash flow. The fact that, in many cases in the developing world, this mechanism was in…… [Read More]

Bibliography

1. Perkins, John (2004). Confessions of an Economic Hitman. Berrett-Koehler Publishers.

2. Herz, Noreena. The Debt Threat: How Debt is Destroying the Developing World. Democracy Now! January 2005.

3. Strange, S. (1986) Casino Capitalism, Oxford, OUP

4. Block, F. (1997). The Origins of International Economic Disorder.
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Tax Liability a Preview of Capital Structure

Words: 2119 Length: 6 Pages Document Type: Essay Paper #: 45408700

Tax Liability

A preview of capital structure issues

In regards to the overall business environment, capital structure has profound implications of the business, irrespective of its industry. For one, a firm's capital structure is then the composition or 'structure' of its liabilities. For example, a firm that sells $40 billion in equity and $160 billion in debt is said to be 20% equity-financed and 80% debt-financed. The firm's ratio of debt to total financing, 80% in this example is referred to as the firm's leverage. This leverage has implications on the entire firm. For example, leverage in many respects is a double edges sword. On one hand, leverage can amplify gains for firms. However, if used incorrectly, leverage can also amplify loses. As such, firms must be cognizant of its capital structure as complacency can hinder overall business performance. Debt and equity financing, can have a profound implications on the…… [Read More]

References:

1) Myers, Stewart C.; Majluf, Nicholas S. (1984). "Corporate financing and investment decisions when firms have information that investors do not have." Journal of Financial Economics 13 (2): 187 -- 221

2) Baker, Malcolm P; Wurgler, Jeffrey (2002). "Market Timing and Capital Structure." Journal of Finance 57 (1): 1 -- 32.

3) Lyandres, Evgeny and Zhdanov, Alexei, Investment Opportunities and Bankruptcy Prediction (February 2007) Available at SSRN: http://ssrn.com/abstract=946240

4) Timmer, Jan (2011). Understanding the Fed Model, Capital Structure, and then Some.
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Tax Deductions for Default

Words: 1187 Length: 3 Pages Document Type: Essay Paper #: 57996689

Tax Deductions: Are Unpaid Loans Tax Deductible?

John loaned his friend Jack $1,000. Jack did not repay the debt and left town. John wants to know if he can claim any tax deduction, and, if so, what is the character of the deduction? However, to answer John's question, one must first find out more information about the nature of the loan. This is critical because there are two broad types of loans and debts: business loans and personal loans. Furthermore, under the correct circumstances, it is possible for people to take tax deductions for certain types of business loans and personal loans. Knowing whether John made Jack a loan from his personal money or from his business money is the crucial first step in determining which, if any, Internal evenue Service (IS) regulations or tax laws will permit John to deduct the unpaid debt.

If John is a business owner…… [Read More]

References

Bailey, A.C. (2014). Unpaid personal loans can reduce your tax bill. Retrieved April 12, 2014

from MyTaxHQ website: http://mytaxhq.com/unpaid-personal-loans-can-reduce-your-tax-bill/

Fishman, S. (2013, June 7). Bad loans to friends and family may be tax deductible. Retrieved April 11, 2014 from Inman News website:  http://www.inman.com/2013/06/07/bad-loans-to-friends-and-family-may-be-tax-deductible/ 

Internal Revenue Service. (2013, December 12). Topic 453- Bad debt deduction. Retrieved April 12, 2014 from IRS website: http://www.irs.gov/taxtopics/tc453.html
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Macroeconomics Over the Last Several

Words: 982 Length: 3 Pages Document Type: Essay Paper #: 67937907

Since their introduction in the early 2000s, the tax cuts have diminished the nation's tax bill by hundreds of billions every year. Over the next ten years, they are expected to add $3.6 trillion to the debt. Without these cuts, our medium-term budget (say, over the next decade) would be sustainable. As long as new revenues are off-limits, attacking the deficit is equivalent to attacking the functions of government. That gives the anti-deficit argument strong ideological support from small-government advocates. But there are others who are not motivated by anti-government ideology but are misguided nevertheless. The ecovery Act, with a price tag of about $800 billion, was a historically large stimulus, and it was wholly paid for by borrowing. But by 2012 it will add less than 0.5% to the deficit-to-GDP ratio, and nothing to the growth in the debt (it does add to the level of debt, of course;…… [Read More]

References

Burnstien, Jared. "Rethinking Debt." Democracy Journal. Last modified 2012. http://www.democracyjournal.org/23/rethinking-the-debt.php?page=all

Chicago Format / http://owl.english.purdue.edu/owl/resource/717/05/

Jared Burnstien, "Rethinking Debt." Democracy Journal, last modified 2012. http://www.democracyjournal.org/23/rethinking-the-debt.php?page=all

Jared Burnstien, "Rethinking Debt." Democracy Journal, last modified 2012. http://www.democracyjournal.org/23/rethinking-the-debt.php?page=all
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Calculate Touring Enterprises' Weighted Average Cost of

Words: 1419 Length: 3 Pages Document Type: Essay Paper #: 6736490

Calculate Touring Enterprises' weighted average cost of capital (WACC).

Work as follows: first, compute the after-tax cost of debt, then compute the cost of equity.

WACC = E/V x Re + D/V x Rd x (1 - Tc)

Re = cost of equity

Rd = cost of debt

E = market value of the firm's equity

D = market value of the firm's debt

V = E + D = firm value

E/V = percentage of financing that is equity

D/V = percentage of financing that is debt

Tc = corporate tax rate

Cost of equity 5%

Cost of debt 10%

Total Equity- 7 million

Total debt- 18 million

Total 25 million

Determine the weightings of debt and equity in the capital structure.

Equity -28% (7 divided by 25)

Debt- 72%

Using your answers to the above questions, calculate the WACC

WACC = E/V x Re + D/V x Rd…… [Read More]

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Wmt in Order for Wal-Mart

Words: 592 Length: 2 Pages Document Type: Essay Paper #: 8003605



al-Mart's capital structure is relatively debt-heavy. For the end of fiscal 2008, Target had a debt/equity ratio of 0.4, indicating a capital structure more oriented towards equity financing. Costco had a debt/equity ratio of 1.25, again lower than that of al-Mart (MSN Moneycentral, 2010). These competitors provide interesting comparables in that neither is as heavily leveraged as al-Mart. They are very large companies with stable cash flow, just like al-Mart, but have chosen to take on less debt in their capital structure.

The financial crisis has also had an impact on al-Mart's capital structure. hen planning the optimal capital structure, firms need to consider the ability of the company to whether economic slowdowns. In al-Mart's case, the impacts of the slowdown were delayed somewhat, but eventually sales began to slump. The company increased its long-term debt in both 2009 and 2010. The debt/equity ratio increased to 1.50 in 2009 but…… [Read More]

Works Cited:

MSN Moneycentral. (2010). Retrieved November 23, 2010 from http://moneycentral.msn.com

Wal-Mart 2008 Annual Report. In possession of the author.
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Tax Cut Policy on Public

Words: 1450 Length: 5 Pages Document Type: Essay Paper #: 70977478

(the Bush Tax Cut: One Year Later)

The members of the AFSCME believe that the Taxes imposed under the Bush administration has influenced them very unenthusiastically, since it has assisted to restrict their capability to concentrate on vital national problems for fairly a few years, due to the reality that the Tax Act comprises every clause that would help the affluent and well-to-do and might add more new tax cuts slowly, and the entire would render the ultimate bill more costly than even George Bush had planned for it to be. Ultimately, every household holding job would be harshly hit by the plan. Besides, its influence on the question of Public Debt is worrying as well. The reality that novel Tax Cut might rescind the Estate Tax is an issue of apprehension as well, particularly since a majority of the states normally share this proceeds with the federal government. (the…… [Read More]

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Funds One of the Most Important Decisions

Words: 1059 Length: 3 Pages Document Type: Essay Paper #: 15347679

Funds

One of the most important decisions that businesses have to make when sourcing for funds is whether to use equity or debt financing. Debt and equity financing happen to be the primary sources of capital for entities. In this text, I discuss these sources of financing in significant detail. In so doing, I will amongst other things highlight the main differences between them as well as the various business characteristics that make one source of financing better than the other.

Debt and Equity Financing: Key Differences

A business seeking capital has to choose from a wide range of funding sources. Such a business can either seek to borrow from banks, issue corporate bonds or get private loans from other investors with a higher risk appetite than banks. All these can be classified broadly as sources of debt financing. Commercial banks however remain the commonest debt financing sources (Kuratko and…… [Read More]

References

Boone, L.E. And Kurtz, D.L. 2011. Contemporary Business (14th ed.). Hoboken, NJ: John Wiley & Sons.

Kuratko, D.F. And Hodgetts, R.M. 2008. Entrepreneurship: Theory, Process, Practice (8th ed.). Mason, OH: Cengage Learning.

Longenecker, J.G., Moore, C.W., Palich, L.E. And Petty, W. 2005. Small Business Management: An Entrepreneurial Emphasis (13th ed.). Mason: Thomson.

Moles, P., Parrino, R. And Kidwell, D.S. 2011. Fundamentals of Corporate Finance. West Sussex: John Wiley & Sons.
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Financial Markets in Their Seminal 1989 Work

Words: 1835 Length: 5 Pages Document Type: Essay Paper #: 7273689

Financial Markets

In their seminal 1989 work, Kopcke and Rosengren posed the question "are the distinctions between debt and equity disappearing?" They noted several challenges to the historical distinction between the two, including new instruments that combined elements of each (e.g. preferred shares, warrants, mezzanine financing) and an increased use in derivative securities. They noted that debt instruments were beginning to incorporate equity-like features, in response to market demand for such innovative forms of financing. The authors also note that in the U.S. At least the tax code and regulatory environment was not keeping up with the changes, contributing to the proliferation of hybrid securities. On closer examination, however, none of these changes indicates a fundamental change in the nature of debt or the nature of equity, simply a change in market preferences. Hybrids have not eliminated or even materially altered debt or equity, they have simply offered the market…… [Read More]

Works Cited:

Damodar, A. (no date). Chapter 7: Capital structure: Overview of the financing decision. Stern School of Management. Retrieved April 18, 2013 from  http://people.stern.nyu.edu/adamodar/pdfiles/acf3E/book/ch7.pdf 

Grout, P., Jenkins, A. & Zalewska, A. (2001). Privatisation of utilities and the asset value problem. CMPO Working Paper Series No. 01/41. Retrieved April 18, 2013 from http://www.bristol.ac.uk/cmpo/publications/papers/2001/wp41.pdf

Hawkins, N. (2010). Privatization revisited. Adam Smith Research Trust. Retrieved April 18, 2013 from http://www.adamsmith.org/sites/default/files/resources/privatization-revisited%283%29.pdf

Kopcke, R. & Rosengren, E. (1989). Are the distinctions between debt and equity disappearing? An overview. Federal Reserve Bank of Boston. Retrieved April 18, 2013 from http://www.bos.frb.org/economic/conf/conf33/conf33a.pdf
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Financial Ratios There Are a Number of

Words: 1342 Length: 5 Pages Document Type: Essay Paper #: 62679965

Financial Ratios

There are a number of financial ratios that will be valuable to a small business person. A small business is often concerned with cash flow, so ratios that are the most concern fall into three categories -- liquidity, profitability and efficiency. Liquidity ratios measure the ability of the company to meet its upcoming financial obligations. These ratios are important for ensuring that there is enough cash on hand to pay the bills. The profitability ratios are important because the business will be more successful if it is able to manage its margins. Efficiency ratios are concerned with how fast items like inventory or accounts receivable are turned over. These ratios are a direct reflection of the company's working capital, and improvements in these ratios improve the working capital flow.

These ratios are going to be slightly different from those that a large corporation values. The large corporation actually…… [Read More]

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Macroeconomics the Government's Policies That

Words: 610 Length: 2 Pages Document Type: Essay Paper #: 63383217



Bernstein also makes the point that government debt is not the same as household or business debt, and that is a valid point to make. There are a few differences of note. The first is borrowing -- government has much better ability to borrow than either business or households, the United States in particular. The size and diversity of the economy is one factor, the difficulty of putting a government into default is another, but also the U.S. has control over the value of its currency. It can devalue its way out of debt if need be, like Iceland did. Households and businesses do not have this luxury -- they are usually on very short leashes with their creditors, with grace periods measured in weeks and months, rather than decades.

Ultimately, the only logical choice in the face of a recession is to increase government spending in order to offset…… [Read More]

Works Cited:

Bernstein, J. (2012). Rethinking debt. Democracy Journal. Winter 2012. 71-82.
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Google Business Models Google and Microsoft Are

Words: 1857 Length: 6 Pages Document Type: Essay Paper #: 14534702

Google

Business Models

Google and Microsoft are competitors in two different businesses, search engines and mobile operating systems. Google is the industry leader in search engines, garnering massive amounts of traffic on its different sites. Google has a number of different search sites (maps, scholar, images, translate) that are in line with its mandate to make information more freely accessible. The company's Android mobile operating system has become a major product for the firm, spurring strong growth in the past few years. Android is licensed by OEM companies (smartphone and tablet makers) to use as an operating system. Much of Google's revenue comes from advertisement sales, which are based on search terms and customer information that has been gathered. The company holds a dominant position in this market.

Microsoft's main business is in the indows operating system and in the company's suite of software. These generate revenues both from OEM…… [Read More]

Works Cited:

Investopedia. (2012). Reading the balance sheet. Investopedia. Retrieved March 5, 2012 from  http://www.investopedia.com/articles/04/031004.asp#axzz1oHefP0yK 

Loth, R. (2012). Understanding the income statement. Investopedia. Retrieved March 5, 2012 from  http://www.investopedia.com/articles/04/022504.asp#axzz1oHefP0yK 

MSN Moneycentral (2012). Google MSN Moneycentral. Retrieved March 5, 2012 from http://investing.money.msn.com/investments/stock-balance-sheet/?symbol=us%3AGOOG&stmtView=Ann

MSN Moneycentral. (2012).
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Scott Equipment Organization Is Trying to Determine

Words: 993 Length: 4 Pages Document Type: Essay Paper #: 84047471

Scott Equipment Organization is trying to determine between short- and long-term debt for its operations next year. The company wants to examine three different scenarios to determine the rate of return on equity, the net working capital position and the current ratio that each of the options will deliver. The different scenarios are as follows.

Aggressive

$24 million STD

LTD 8.5%

Moderate

$18 million STD

LTD 8%

Conservative

$12 million STD

LTD 7.5%

This paper will analyze these different scenarios to determine the effect that each will have on the company's finances. The givens in the scenario are $30 million in current assets, $35 in long-term assets, $40 million in equity, sales of $60 million, EBIT of $6 million and a tax rate of 40%. The paper will not only analyze the three financial metrics but will examine the three scenarios in terms of the tradeoffs that they offer.

Return…… [Read More]

Works Cited:

Investopedia. (2013). Current ratio. Investopedia. Retrieved June 18, 2013 from  http://www.investopedia.com/terms/c/currentratio.asp 

Investopedia. (2013). Net working capital. Investopedia. Retrieved June 18, 2013 from  http://www.investopedia.com/terms/w/workingcapital.asp 

Jan, I. (2013). Return on equity (ROE) ratio. Accounting Explained. Retrieved June 18, 2013 from  http://accountingexplained.com/financial/ratios/return-on-equity
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Small Business Owner Financial Ratios Understanding Concepts

Words: 1170 Length: 4 Pages Document Type: Essay Paper #: 20495400

Small Business Owner: Financial atios

Understanding concepts

Financial analysis is one of the most reliable means of assessing an economic agent as it relies on quantitative data, which is unbiased, objective and which can be extrapolated. Still, despite these advantages of financial analysis, fact remains that its results can generate relative findings based on the characteristics of the assessed company. For instance, while a small size company would be more interested in decreasing debt, a large size entity would pay less attention to debt.

In the context of a small size company, some of the more relevant financial ratios to be assessed refer to the profitability ratios, the liquidity ratios, the debt ratios and the activity ratios. Each of these categories contains several important ratios, as follows:

Profitability ratios: the gross profit margin, the net profit margin, the return on equity

Liquidity ratios: current ratio, quick ratio or current ratio…… [Read More]

References:

Cooper, J., 2011, How to calculate financial ratios for your small business, Mimosa Planet,  http://mimosaplanet.com/Small-Business-Blog/bid/62950/How-to-Calculate-Financial-Ratios-for-Your-Small-Business.htmllast  accessed on August 21, 2012

2010, Financial ratios, Net MBA, http://www.netmba.com/finance/financial/ratios / last accessed on August 21, 2012

2012, Beta risk, Investopedia,  http://www.investopedia.com/terms/b/beta-risk.asp#axzz24AKreBy1  last accessed on August 21, 2012

Systematic and unsystematic risk, Nerimanhb, http://narimanhb.com/2010/08/18/systematic-unsystematic-risknon-diversifiable-and-diversifiable-risk/last accessed on August 21, 2012
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Understanding the Concepts

Words: 1585 Length: 5 Pages Document Type: Essay Paper #: 53327281

Finance Concepts

As a small business owner determine the financial ratios that are important to the business, and compare them with those that are important to a manager of a larger corporation.

For a small business, the most important financial ratios are those in the profitability and efficiency classes. These include profit margin, return on assets, asset turnover, and fixed asset turnover. For the most part, small businesses are able to be more efficient and have higher profitability ratios than larger companies (Upneja, Kim, & Singh, 2000, p.28). Small businesses would be especially concerned with profit margin and return on assets, while a larger corporation would focus more on earnings per share and return on equity, which are concerned with shareholder equity, something that does not concern many small businesses.

Small business owners would also be interested in the liquidity ratios that measure the cash available to pay off debt,…… [Read More]

References

Brigham, E.F., & Ehrhardt, M.C. (2011). Financial management: Theory and practice.

Mason, OH: South-Western Cengage Learning.

Debt vs. equity financing: Which is the best way for your business to access capital? (2013).

NFIB. Retrieved January 21, 2012 from:
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Macro-Economic Choices the Three Major Categories for

Words: 1197 Length: 4 Pages Document Type: Essay Paper #: 16699388

Macro-Economic Choices

The three major categories for the federal government's revenues include: individual incomes taxes, corporate income taxes and social insurance taxes. Individual income taxes accounts for the largest amounts of spending for the federal government. As, these figure increased from: $1.1 trillion in 2010 to $1.3 trillion in 2011. While social insurance taxes are the second largest source of revenues with them providing at total of: $938 billion for 2010 and $978 billion for 2011. Then, there are corporate income taxes that are accounting for revenues of: $252 billion for 2010 and $292 for 2011. ("The udget and Economic Outlook," 2011)

What are the three major categories of expenditures for the federal government? Please comment on each and indicate their relative importance to each other. Relative importance can be indicated by dollar amounts, percent of total revenue or expenditure or, though less informative, by ranking.

Three categories for the…… [Read More]

Bibliography

The Budget and Economic Outlook. (2011). CBO. Retrieved from: http://www.cbo.gov/ftpdocs/99xx/doc9957/01-07-Outlook.pdf

Debt Panels Plan would cut $4 Trillion. (2010). CNN. Retrieved from:   http://money.cnn.com /2010/12/01/news/economy/fiscal_commission_final_report/index.htm 

What are Leading, Lagging and Coincident Indicators. (2011). Investopedia. Retrieved from:  http://www.investopedia.com/ask/answers/177.asp#axzz1dPfs5OIY 

Freid, C. (2011). Deficit Reduction Proposals. CBS News. Retrieved from: http://www.cbsnews.com/8301-505123_162-41141567/deficit-reduction-proposals-what-they-could-mean-for-you/?tag=mwuser
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Risk Return and Their Evaluation Risk &

Words: 1454 Length: 4 Pages Document Type: Essay Paper #: 68660864

isk, eturn and Their Evaluation

isk & Performance Indicators

Since this is a small business, therefore raising equity capital through public stock issue is less likely than debt or whatever form of paper issued to angel or venture investors. Therefore while a larger, publicly traded firm would consider the return on equity version of the short form DuPont equation, a small, more closely-held concern would focus on return on assets (OA). If OA is net income over sales times sales over total assets, i.e. net income over total assets, then any action that could increase the numerator, total income, or shrink the denominator(s) should increase OA compared to past performance within the firm and the competition outside it. If competitors all use the same (best) plant, then maximizing efficiency of the same assets through process or brand innovation; input cost reductions, and also financial performance like minimizing payables days over…… [Read More]

Reference

Investopedia (2011). How to calculate required rate of return. Forex. 25 Feb. 2011. Retrieved

from http://www.investopedia.com/articles/fundamental-analysis/11/calculating-required-rate-of-return.asp#axzz1wxIzjR6l
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How Can the Government Spend More Than it Brings

Words: 1100 Length: 3 Pages Document Type: Essay Paper #: 56402666

U.S. Government Deficits

hy is it that the U.S. Government can spend more than it brings in through taxes and other revenue? hat are the specific reasons why the U.S. can consistently and constantly operate its programs and conduct official business while running a huge deficit? These questions and others will be reviewed in this paper.

The Deficit -- why and by how much is the U.S. In debt?

A May, 2012 article in the Economist quotes Republican presidential candidate Mitt Romney saying that the U.S. Government has "…a moral responsibility not to spend more than we take in" (Economist, 2012, p. 1). The article reminds Romney that if what he is saying is true then America is "…a thoroughly depraved and immoral country" because in 76 of the past 100 years "the U.S. government has spent more than it has taken in" (Economist, p. 1). In fact in 26…… [Read More]

Works Cited

Amadeo, Kimberly. (2012). The U.S. Debt and How It Got So Big. About.com. Retrieved October 31, 2012, from http://useconomy.about.com.

Congressional Budget Office. (2012). CBO's Major Budget Reports. Retrieved October 31,

2012, from http://www.cbo.gov/publications/43648.

Cauchon, Dennis. (2012). Real federal deficit dwarfs official tally. I. Retrieved
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Identifying Long-Term Trends

Words: 511 Length: 2 Pages Document Type: Essay Paper #: 42459715

Long-Term Trends

Short-Term Debt

Long-Term Debt

Common Equity

Total

The FedEx capital structure is mostly in common equity. The company does have some long-term debt, but this is only a quarter of the capital structure, indicating that FedEx is not a highly leverage firm.

The key economic variable for FedEx is the GDP, in particular the GDP growth rate. The GDP is the broad measure of economic activity. This is an important measure because FedEx has a broad corporate customer base, and as such its success is highly correlated with the broader economy. When the GDP is rising, this is good for FedEx's business. Now, if we are talking about expanding in Canada, then the key is to know where it might be useful to expand, as in finding out where the GDP is growing. That way, the new capacity will be filled more quickly. That is simply a matter…… [Read More]

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Frank-Dodd One of the Issues

Words: 1826 Length: 6 Pages Document Type: Essay Paper #: 60872390

The philosophy behind Frank-Dodd is to minimize the risk to the taxpayer of trade in these instruments, but this is to be balanced against the needs of the industry. Arguably, however, there is no particular need for synthetic CDOs, so tight regulation that restricts their manufacture and use should be sufficient.

The Frank-Dodd Act imposes significant regulatory burden on synthetic CDOs and the use of credit default swaps to create synthetic CDOs. The full extent of the burden has yet to be defined, in part because the terminology in the risk retention rule has yet to be adapted to these products. Adapting the wording of Section 941 would further regulate and control the use of these instruments. By providing clarity, improved wording would allow regulators to create a tighter framework with fewer loopholes. The regulator would also be able to craft the wording the way it wants, as opposed to…… [Read More]

Works Cited:

Forrester, J. & Jacobsen, W. (2010). Impact of Frank-Dodd risk-retention requirements on CDOs, CLOs and the loan market. Mayer Brown LLP. Retrieved November 7, 2012 from  http://www.martindale.com/finance-law/article_Mayer-Brown-LLP_1106518.htm 

Gandel, S. (2010). Is proprietary trading too wild for Wall Street? Time Magazine. Retrieved November 7, 2012 from http://www.time.com/time/business/article/0,8599,1960565,00.html#ixzz1kuiacUK

Investopedia. (2012). Collateralized debt obligation (CDO). Investopedia.com. Retrieved November 7, 2012 from  http://www.investopedia.com/terms/c/cdo.asp 

Mattingly, F. (2012). Why Romney won't kill Frank-Dodd. Business Week. Retrieved November 7, 2012 from http://www.businessweek.com/articles/2012-09-06/why-romney-wont-kill-dodd-frank
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Satisfy Its Investors Cash-Rich Apple Borrows Money

Words: 793 Length: 3 Pages Document Type: Essay Paper #: 31379481

Satisfy Its Investors, Cash-ich Apple Borrows Money, authors Peter Lattman and Peter Eavis provide insights into why Apple senior management chose to initiate and complete a record-sized bond deal of $17B. One of the primary motivations for amount of bond debt taken on by Apple is to stabilizing their continually dropping stock price, a concern of public and private or institutional investors alike (Mackenzie, odrigues, 2013). Apple has said that this bond issue is part of a planned $100B payout to investors by 2015, which is a core part of their strategy to retain institutional investors as the largest percentage of their stock ownership (Seitz, 2013). The intent of this analysis is to provide an overview of the article To Satisfy Its Investors, Cash-ich Apple Borrows Money followed by an analysis of the article and discussion of its relevance to financial management.

Article Summary

The article provides a synopsis of…… [Read More]

References

Burne, K., & Cherney, M. (2013, May 01). Apple's record plunge into debt pool. Wall Street Journal.

Mackenzie, M., & Rodrigues, V. (2013). Apple cleans up with $17bn U.S. bond issue. FT.Com,

Seitz, P. (2013, Apr 30). Apple sells $17 billion in bonds in historic offering. Investor's Business Daily.
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Jamaican Economy Fairness of the

Words: 1151 Length: 4 Pages Document Type: Essay Paper #: 92892398

There are several standpoints to justify this position:

First of all, as mentioned in the Life and Debt documentary, and as stipulated in the legislation, the free zones are not regulated by the Jamaican government

Secondly, this condition leads to the inability of workers to become organized in unions and ask for their rights to be respected

This means that the American contractors, who in effect play the role of employers, minimize all costs, including those with work safety and security, personnel wages and so on; as a parenthesis, the salary of a Jamaican employee in the free zones if of $120 a month

The employees put in extra, unpaid hours and ever work six day weeks. When some of them rebel to ask for more money or the protection of their rights, they are fired.

All the above findings lead to the unfortunate conclusion that the United States of…… [Read More]

References:

Chen, W., 2009, High interest rates -- the road to ruin, The Gleaner, http://www.jamaica-gleaner.com/gleaner/20090222/focus/focus1.html last accessed on April 16, 2010

2010, The World Factbook -- Jamaica, Central Intelligence Agency,  https://www.cia.gov/library/publications/the-world-factbook/geos/jm.html  last accessed on April 15, 2010

Jamaica: October 1998, World Trade Organization, http://www.wto.org/english/tratop_e/tpr_e/tp85_e.htm last accessed on April 16, 2010
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Financial and Accounting at a Hospotal

Words: 1277 Length: 5 Pages Document Type: Essay Paper #: 21658097



It is, in this sense, a question of security and risk avoidance. In a financially insecure environment, an environment where state budgeting and financing for hospitals may be influenced by issues such as a change in the governing party, a change in the state priorities or anything like this, it is important to know that, while on one hand your sources of financing are variable, including here the possibility that sponsorship contacts may be less important in some years, your financial obligations remain stable and are not subject to modifications.

A second important advantage for the two types of conventional mortgage schemes I have mentioned is the fact that they seem to be more addressed to long-term activities than the adjustable rate conventional mortgage. Indeed, the adjustable rate advantages people who will prefer to change their asset after the first years and will benefit form the lower interest rate and…… [Read More]

Bibliography

1. Understanding Mortgage Options. Alpha Mortgage Services Inc. On the Internet at http://www.loanbright.com/alphatoledo/options.htm

2. Conventional Mortgage Program Overview. 2005. FreddieMac. On the Internet at http://www.freddiemac.com/multifamily/conventional.htm

Understanding Mortgage Options. Alpha Mortgage Services Inc. On the Internet at http://www.loanbright.com/alphatoledo/options.htm
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Google Is a Better Value Than Yahoo

Words: 1191 Length: 4 Pages Document Type: Essay Paper #: 9885783

Google is a better value than Yahoo. This is because the company is involved in many different segments of the technology marketplace. They have a lower price earnings ratio and price to EBITDA. At the same time, the firm has a larger market capitalization, greater amounts of cash, low levels of debt and a management structure / strategy which are encouraging continuing innovation. In the future, this means that the firm will remain a dominant player inside the marketplace.

The Balance Sheets of Google vs. Yahoo

The balance sheets of Google and Yahoo reveal a number of different factors which are illustrating the financial strength of both firms. In the case of Google, it has a market capitalization of $292 billion, revenues of $53.10 billion, $50.10 billion in cash and $9.7 billion in debt. Moreover, the company has a price to book value of 2.28, a PE ratio of 16.56…… [Read More]

References

Google. (2013). Yahoo Finance. Retrieved from:  http://finance.yahoo.com/q/ks?s=GOOG+Key+Statistics 

McDonalds. (2013). Yahoo Finance. Retrieved from:  http://finance.yahoo.com/q/ks?s=MCD+Key+Statistics 

McDonald's April Comps Dip. (2013). Yahoo Finance. Retrieved from:  http://finance.yahoo.com/news/mcdonalds-april-comps-dip-152002252.html 

Yahoo. (2013). Yahoo Finance. Retrieved from:  http://finance.yahoo.com/q/ks?s=YHOO+Key+Statistics
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Credit Cards Were Devised in

Words: 461 Length: 1 Pages Document Type: Essay Paper #: 44933744



In fifty years, the heavy spending that credit cards facilitate will be viewed negatively, but credit cards themselves will still exist and most likely without stigma. The use of credit cards will be even more widespread, as fewer purchases will be done on site. Credit cards may be scorned by individuals who have acquired too much debt, but on the whole their benefits to society will not be overlooked.

The dramatic increase in consumerism in the United States over the past century received some contribution from credit cards. However, there are a number of other contributing factors as well. The impacts of credit cards have been both positive and negative. They hurt the country economically, facilitating low savings rates and wealth transfer out of the country. They do, however, offer unique convenience and security in today's mobile, electronic world, the same benefits that drove their invention in the face of…… [Read More]

Works Cited:

Stephey, M.J. (2009). A brief history of credit cards. Time Magazine. Retrieved December 10, 2009 from http://www.time.com/time/magazine/article/0,9171,1893507,00.html

Garcia, G. (1980). Credit cards: An interdisciplinary survey. The Journal of Consumer Research. Vol. 6, 4, 327-337.

Federal Reserve Bank. (2009). Consumer Credit. Federal Reserve Bank. Retrieved December 10, 2009 from  http://www.federalreserve.gov/releases/g19/current/default.htm
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Blow the Whistle on What You Heard

Words: 1086 Length: 3 Pages Document Type: Essay Paper #: 15849755

blow the whistle" on what you heard in the garden? If so, how will you blow the whistle? If you decide to blow the whistle, what are your reasons for doing so? Your discussion should reflect knowledge of what Boatright says about issues, problems and justifications for whistle-blowing. Also, in discussing the answers to these questions you should include the following: 1) you should evaluate real and potential conflicts of interests that confront you in your decision 2) you should explain how your reasoning is consistent or inconsistent with the three following moral theories: Kantian moral theory, utilitarian moral theory and virtue theory.

The situation

Our MBA is not really aware of what is going on; all he has is assumptions, guesses. He has no actual proof. In the first case, he has had suspicions of several transactions -- their accounting practices seem suspect - and he has pointed out…… [Read More]

Sources

"Behind the Enron Scandal - Multiple Articles." TIME 2002. 27 Apr. 2006 .

"BBC NEWS | Business | Enron Scandal At-a-Glance." BBC News. 22 Aug. 2002. The BBC. 27 Apr. 2006 .

"Enron Scandal - Information on Enron." Securities Fraud Fyi. 2003. 27 Apr. 2006 .

Hays, Kristin. "Prosecutor Questions Lay At Enron Trial." Business Week 27 Apr. 2006. 27 Apr. 2006
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Lowe's Companies Inc Lowe's Companies Inc Lowe's

Words: 1600 Length: 5 Pages Document Type: Essay Paper #: 66693874

Lowe's Companies, Inc.

Lowe's Companies Inc.

Lowe's Companies, Inc.

Lowe's Companies, Inc.

This report discusses the home improvement retailer, Lowe's Companies, Inc. The report profiles Lowe's, providing information about its background, operations, size, and relative industry position, as well as lists key competitors. The report also includes a profile of the home improvement retail industry and discusses the current economic outlook and sales forecasts through 2015.

The report also analyzes Lowe's consolidated cash flow statements and discusses the company's sources and uses of cash. Lowe's cash inflows and outflows include the issuance of common stock, repurchase of common stock, repayment and issuance of long-term debt, and investments in property and store information technology.

In addition to reviewing Lowe's cash flow, financial analysis reviews Lowe's performance by comparing Lowe's key ratios to industry ratios. In general, ratio analysis shows Lowe's needs to improve its efficiency and generate more sales. Even though…… [Read More]

Reference List

Home Improvement Research Institute (HIRI). "The March 2012 home improvement products market sales forecast grew 3.8% in 2011 with an increase in 2012 to 5.0%." Accessed April 27, 2012. http://www.hiri.org/?page=Media.

Lowe's. 2012. "Corporate information." Accessed April 27, 2012.  http://www.lowes.com/AboutLowes/AnnualReports/annual_report_11/includes/pdfs/Lowes_2011_Annual_Report.pdf 

Lowe's. 2012. "2011 Form 10-K." Accessed April 27, 2012.  http://www.lowes.com/AboutLowes/AnnualReports/annual_report_11/includes/pdfs/Lowes_Form10K.pdf 

Yahoo! Finance. 2012. "Home improvement stores." Accessed April 27, 2012. http://biz.yahoo.com/ic/736.html