Capital asset

General Motors is very open about its investing procedures but some elements may be hidden to protect its investors in the future. The equity of the organization would be determined by the amount of assets verses the amount of liabilities, as long as General Motors decides to use its capital earned from sales to pay its liabilities their equity would be in good standing. The decision to purchase debt securities would come from the organization determining if the return on investment would be…

covered salary amount. As you aware, addition of Mammoth Mart will almost double the number of insured lives Sensible covers. In view of the above, I recommend a conservative portfolio for Sensible with the strategic asset allocation for investment as table below. Table 1 – Strategic Asset Allocation No Investment Type Weight Expected Return Weighted Expected Return 1 Short-Term Treasury Bills 40% 4.9% 2.0% 2 Long-Term Treasury Bond 20% 6.3% 1.3% 3 Long-Term Corporate Bond 20% 6.8% 1.4% 4…

does limit the use of this strategy as a tax planning tool. Sale of the business to a new owner If R&G consider selling business to a new owner then the buyer will buy only those assets and liabilities as per their choice. Also estimate goodwill of the business and its valuation may be required. Moreover, capital gains/losses from the sale of the business can’t be transferred to Richie and Gemma until both businesses are wound up. Sale of the shares in both businesses to a new owner - Use…

finance for the business. We can issue new and additional shares to the public.The advantage of this source is thatwe won't have to make payments to investors until the business can afford them. It is a permanent source of capital with low risk. Increasing the invested capital…

corporate finance, the management of portfolios, and the analysis of acquisitions. Since the value of assets differ, estimates to determine the financial and real value are required. The uncertainty of value for assets is common and a great technique to diminish this is by building better models and creating ranges. In corporate finance, valuation is important due to the process of requesting extra capital from investors. Not all investors, such as fundamental analysts and information traders…

2. Capital Structure and Solvency: Solvency refers to the company’s ability to meet its long-term obligations. The capital structure of a company details how the company is financed, that is, the proportion of debt to equity. Below are the ratios for Starbucks Corp. and the Dunkin’ Brands Group Inc. (Subramanyam, 2014). Table 6: Capital Structure & Solvency-Starbucks. & Dunkin’ Brands Group. Prepared by Kyria Aho 2.1. Total debt to equity: This ratio compares the debt capital of the…

has two aspects – quantitative and qualitative. Quantitative aspect implies the quantum of current assets a firm possesses irrespective of making any difference between various types of current assets such as inventories, cash and so on. Qualitative aspect implies the quality in terms of their realization into cash considering time dimension involved in maturing different components of current assets. Profitability is the capacity of earning profits and it is most important measure of…

invest in long-term assets such as equipment and building. The company need money to purchase materials, pat wages, and to pay the bills such as water and electricity. In-experienced entrepreneurs or the social entrepreneurs need often underestimate the capital needed for the everyday running of the business. This is the reason that why source of finance is crucial for any business. (2015, Ask Will…

Asset and Liability Management A credit side of a US bank’s balance sheet typically included floating-rate liabilities and long-term fixed-rate liabilities, whereas debit side consisted of floating-rate assets and long-term fixed-rate assets. Generally speaking, asset and liability management required the banks to match the economic characteristics of its cash in and out and the strategic decisions relative to interest rate exposure required banks to match their assets to liabilities effectively…

resources which are claimed by a corporation, company or business are known as an asset. o Liability is a commitment emerging from past occasions, the settlement of which may bring about the exchange or utilization of assets, delivery of services. o When the ownership has an interest in the business it is known as equality. o The cost for which the advantages to be derived is called expenditure. Revenue expenditure and capital expenditure…