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Equity Theory

Capital Structure and Cost of Equity

In each of the theories of capital structure, the cost of equity rises as the amount of debt increases. So why don't financial managers use as little debt as possible to keep cost of equity down? After all, isn't the goal of the firm to maximize share value (and minimize shareholder costs)?

Intro to Financial Analysis

Part1 Compare the GAAP and economic balance sheets. Dell, Inc. www.dell.com Using the GAAP balance sheet, for each item, determine where it should be classified in the economic balance sheet (i.e., core operations, nonoperating net assets, debt claims, other capital claims, or equity claims). Create a two-column ta

Jackson Technology's Average Cost of Capital

1. Weighted average cost of capital Jackson Technology's capital structure is as follows: Debt 35% Preferred stock 15 Common equity 50 The after-tax cost of debt is 6.5 percent; the cost of preferred stock is 10 percent; and the cost of common equity (in the form of retained earnings) is 13.5 percent. Could you calculate

Toyota - Raising Funds to Meet Recall Cash Requirements

Toyota Motor Corp, the world's second largest auto maker, has a big problem. At the end of May, 2006 the company announced a recall affecting roughly one million of its vehicles world wide. The problem has to with the steering mechanism of the affected vehicles that could fail under pressure and cause drivers to lose control. To

Comparing Leadership Theories

Recent theoretical developments in leadership paradigms seem more inclined to frame leadership concepts within the context of moral philosophy, interpersonal growth and spiritual values, topics discussed in business leadership models. Some examples include transformational leadership (Burns, 1978; Bass, 1990), Servant-Leadership

Motivation Theories

Applying motivation theories to a fictitious organization. This fictitious organization has the following three types of employees: salespeople, production workers, and administrative staff. Discuss which of the following motivation theories would be most effective to motivate these employee groups and explain why: a. M

Capital Budgeting

Given the following graph: % 25-- 20-- 15-- MCC 10-- 5 --- IOS (IRR) I I I I I I I I I 0 2 4 6

Calculating CitiGroup Financial Ratios

1. From the Annual Report of the Company (see attachment), calculate all the ratios listed below. 2. What insights do these ratios provide about the company's performance? 3. What challenges / opportunities for improvement does the company appear to have based on the key financial ratios? 4. If you were a manager in this c

Porter's 6 competitive forces

What are the competitive forces that shape an organization's strategy? Porter's 6 competitive are potential entrants, rivalry among existing firms, bargaining power of buyers, bargaining power of suppliers, threat of substitute products/services., relative power of other stakeholders, for Macy*s What is the relationship betwe

Debt and Equity MIX

1. The debt and equity mix is an example of a financial ratio and indicates the extent to which borrowed funds are used to finance assets. What are the main factors that go into determing the right mix of equity and debt? IF debt is always cheaper than equity ,why have equity? 2.Financial Lease option You are the owner of

Adam's Equity Theory

I need to write a paper that focuses on the administrative staff of a fictitious organization and how Adams' Equity Theory could be used to motivate this specific group of employees. Please provide a discussion and information to address this topic. Thank you.

Human Behavior and Motivation Summary

Please answer the following in detail with your experience and with APA sources, Please give full explanation on the comparison of different perspectives. Compare different perspectives on human behavior and motivation and analyze how these translate to organizational reward systems.

Motivation Concepts Table

Using the "Motivation Concepts Table" describe how a theory would or would not be applicable if applied to two or more workplace situations drawn from a personal experience. In the instance in which the selected theory of motivation was not applicable to your workplace experience, assess the need to develop and create a new t

Total Reward Questions

Can you assist with these questions replying to them utilizing the Ford auto industry as an example. 1.How is the impact of total reward system different than the impact of the compensation system (direct financial rewards) portion alone? Please use an example of the Ford Motor Industry. 2. Which motivational theories see

Financial Accounting Theory Fortune 100 Companies

Case 15-14 Financial Analysis Log onto the World Wide Web and search for the annual reports of three domestic Fortune 1000 companies and three international companies. (Consult the Preface for websites of companies or search for different companies.) Required: a. Review the financial statements for the three domestic comp

Modern Investment Theory

This assignment is concerned with your understanding of the key issues relative to portfolio analysis and investment. In completing this assignment you are to limit your scope to the US stock markets only. Use the Library, the Internet, and course resources to write a 2-page essay which you will use with new clients of your fina

Fianacial statements and interest rates

1. 3D Square Inc. reported that its retained earnings for 2005 were $490,000. In its 2006 financial statements, it reported $60,000 of net income, and it ended 2006 with $510,000 of retained earnings. How much were paid as dividends to shareholders during 2006? a. $20,000 b. $25,000 c. $30,000 d. $35,000 e. $40,000

Capital Relationship

Explain the relationship between the cost of capital, bond rating and capital budgeting decision-making process.

Economic Unit Concept

A Comparison of Consolidated Financial Statements under the Economic Unit Concept and the Parent Company Concept Project Scenario On January 1, 2004, Pinter purchased a controlling interest in Strong, Inc., for $800,000. At that date Strong's book value was $600,000. Strong's assets and liabilities approximated their market

Discussion of three theories of change management

Change management is essentially a communication strategy that reduces anxiety and concerns in those being affected in order to help them accept change. The best-known planned-change processes, the force field analysis model has resulted from the work of Kurt Lewin. Two other theories of Change Management will be discussed here;

Case Analysis for Accounting Theory Course.

I am having a problem with three of the eight points (6,7,8) in relation to this problem. I am required to prepare a memo to the partner in accounting firm covering in detail the accounting and audit issues arising from this engagement. Attached is point number 6 - the question relates to inventory. The following points I

Performance and Motivation Theory

Today's leaders are expected to get continuous improvement in performance. Various approaches from motivation theory to performance management can be used to do so. What is the value of these different approaches? How does a leader leverage them as he or she focuses on improving business results?