6. Please describe how changes in capital structure affect the
value of the firm in a world with taxes and including the possible
costs of financial distress. Is there an optimal capital structure
for a firm? Please discuss. Electric utilities have an average 60%
debt/total capitalization ratio whereas software firms have debt
ratios close to zero. Why? Please explain the dividend policy that
you would advise for a tech company to adopt that has very high
business risk. How do...
Please describe how changes in capital structure affect the
value of the firm in a world with taxes and including the possible
costs of financial distress. Is there an optimal capital structure
for a firm? Please discuss. Electric utilities have an average 60%
debt/total capitalization ratio whereas software firms have debt
ratios close to zero. Why? Please explain the dividend policy that
you would advise for a tech company to adopt that has very high
business risk. How do you...
Please describe how changes in capital structure affect the
value of the firm in a world with taxes and including the possible
costs of financial distress. Is there an optimal capital structure
for a firm? Please discuss. Electric utilities have an average 60%
debt/total capitalization ratio whereas software firms have debt
ratios close to zero. Why? Please explain the dividend policy that
you would advise for a tech company to adopt that has very high
business risk. How do you...
Please explain the general relationship between the current
account and the capital account for the following three countries,
AND if the relationships are different, please explain why? [Word
limit: 500 words]
a) China
b) Japan
c) United States
Briefly explain the relationship between capital structure,
insurance and strategic risk management. When do insurance and risk
management add to firm value? When do they not add to firm
value?
There is a __________ relationship between the present value of
growth opportunities within a firm and that firm's price to
earnings ratio.
Negative
Non-existent
Positive
Strange
3.
A. Explain what is meant by the capital structure of an
industrial firm (such as a manufacturing company). Be precise.
B. List components of the capital structure that you have
defined above.
C. Are the items you have listed in part B above long term in
nature (more than one year?)
D. Explain (in as much detail that you wish, including numerical
analysis and graphs) the net income view or the traditional
approach in regards to the relationship between...
(IN YOUR WORDS PLEASE) a. Explain the relationship between
“Expectations” and “performance” of products/services and how it
affects customer satisfaction.
b. List the 4 steps in strategic planning.