Capital adequacy ratio

WACC gives the cost of this capital raised by putting appropriate weights on the cost of equity and the cost of debt R_E=R_f+〖(R〗_m-R_f)*β_M R_f=risk free rate (govt. security bonds) R_m-R_f=risk premium β_M=systematic risk (regression of stock returns of company on market return) The cost of equity is calculated via capital asset pricing model. Cost of debt is calculated by taking the interest rate for the year 2013 as…

One of the biggest disagreement between the two companies was the equity value of Lombardi. According to Lombardi, their company was valued at $8M, Hagilent Technologies’ equity expert rated Lombardi as a sole entity around $1M - $1.7M. Even though Hagilent Technologies equity expert explained that valuing a band name was difficult, Hagilent Technologies was disappointed to learn that the value was lower than the price offer and lower than their expectations (Gouveia & Lee, 2016). This issue…

Financial Accounting may be defined as the science and art of recording and classifying business transactions and preparing summaries of the same transactions and preparing summaries of the same for determining profit or loss and the financial position of the concern. The object of is to find out the profitability and to provide information about the financial position of the concern. Its purpose is to provide information for others to the value of a company. It is concerned with record –…

Volkswagen and BMW increased in debt to equity ratio indicates that both company has been aggressive in financing their growth with debt, while BMW able to maintain a steady cash flow over the years, this is not the case for Volkswagen. Overall, Solvency and liquidity analysis are equally important in financial statement analysis. Volkswagen low debt to equity ratio combined with low financial leverage and its ability to meet long-term obligations indicates lower risk of insolvency. On the…

1.1 BARCO stands for Belgian American Radio CO-orporation.Barco is a display /monitors manufacturing company which is working in the field of digital cinema projection, video projectors, wall projectors, Image Processing, LED displays, video walls, flat panel displays, automatic luminaires, digital lighting, lighting controls, display controllers . Barco is the source of displays monitors and visualisation/projection products. Barco makes solutions for large screen visualisation/projection,…

conversion period = Days in inventory + Days sales outstanding – Days in payables = 70 days + 28 days – 30 days = 68 days. Based on the computation above, Pearson Air Conditioning & Service will need to finance 68 days of operations with its working capital, which is over two months of operations. This certainly will place the…

) Most Profitable Company As per the graph, it is determined that JM monetary has high gain compared to any or all its competitors. Religare enterprises is that the least profitable within the ton. Bajaj Finserv is that the most profitable with a profit of Rs 733.35 crore, a rise in two.08% as compared to last year. f. Who has (impression will do) the lowest cost structure In financial services sector, there's lowest input for operations as raw materials and production overhead is zero.…

produce and sell units provided the revenue from additional unit(s) outstrip the cost of producing it or them. By evaluating the contribution margins of Atco Plc’s products A and B, their contribution margins and contribution margin ratios are positive. Contribution margin ratios aid in the determination…

A. LIQUIDITY RATIOS 1. CURRENT RATIO The current ratio measures a company’s ability to pay its short term obligations. The current ratio of Adani Power Ltd. has increased over the past three years. The Current ratio of Adani Power is constantly below 1, meaning that the current liabilities are more than the current assets. This suggests that the company would be unable to pay off its obligations if they came due at that point. This indicates that the company is not in good financial health. 2.…

6. SWOT Analysis 6.1 Strengths of Mr Price a) Mr Price is a cash based operator and is currently operating on 83% cash sales out of their total sales of 2016. This is strength for Mr Price as there is less impact by the cyclical nature of retail, there is much less exposure to bad debt, Mr Price now also does not need to be dependent on credit driven sales - especially during poor economic times and by having a good cash flow this will support and fund the future growth of Mr Price. If you…