Explain influences of financial leverage (debt)
Does financial leverage (i.e. debt) have any influence on the Free Cash Flow, upon the Cash Flow to Shareholders, upon the growth of the company and upon the value of the shares?
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Debt has no impact upon Free Cash Flow since this is, by definition, the flow to shares when the company had no debt. Though, the equity flow does depend upon the debt. It also affects the capitalization and the value of shares. If a company raises its debt, its capitalization reduces and, naturally and the price per share increase.
Universal Corporation has the following dividend policy: if the earnings after taxes are less than $1 million, the dividend payout ratio will be 35%, but if these earnings are over $1 million, the dividend payout ratio will be 45%. The EBIT of Universal for next year
Assume that you have $50,000 which you want to invest in two companies, XYZ Books and ABC Audio. XYZ has a return of 10% and standard deviation 15%, while ABC has return of 15% with a standard deviation of 20%. The correlation coefficient between them is .5. Your port
Corporate Development: Corporate development is a term which references the range of planning options and strategies which can assist to move a company toward its targets. The procedure of this kind of strategic development can be exerted to just abou
Explain the working of breakthrough in low-discrepancy sequences used for option valuation.
Calculated betas give different information if they are acquired by using weekly, monthly or daily data.
According to what I read inside a book, market efficiency hypothesis means that the expected average value of variations is zero in the shares price. Thus, the best estimate of the future price of a share is its price now, as this incorporates all the available inform
Why do a Split?
Is this true that a company creates value for its shareholders in a year when this distributes dividends or when the quotation of the shares increases?
For XYZ Corporation debt-to-equity ratio, marginal tax rate, and dividend payout ratio are all of 40%. The cost of debt is 10%. Cambria contains 1 million shares of common stock, and $25 million in long-term bonds. Its dividend is $1 per share. Determine the EBIT and
Who wrote famous paper of on distribution of cotton price returns?
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