Costs and Benefits of Raising Capital Through Different Sources

Costs and Benefits of Raising Capital Through Different Sources

Author: Junaid Javaid

Publisher:

Published: 2015-08-20

Total Pages: 40

ISBN-13: 9783668031685

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Master's Thesis from the year 2015 in the subject Business economics - Business Management, Corporate Governance, grade: B-, University of Bedfordshire, course: MBA, language: English, abstract: This theory into practice final project is written on the topic of 'Costs & Benefits for Raising Capital through Different Sources'. Major aim of this theory into practice report would be to let know readers about all of form funding sources (that would make possible for the companies in meeting their working capital needs). It has been understood that the method or process of acquiring capital through different sources is termed as Financing Decision. The Corporations are actively recruiting financial managers mainly for the successful execution of financial decision. Generally, there have been various sources of funds that could be utilised by companies for meeting their working capital needs. It has been observed that with the utilisation of funds from different sources not only made possible for the underlying firm to survive through difficult periods but would help it in expanding its operations as well. All of these sources are classified in to five main classes: Internal Financing, Security Financing, Lease Financing, Loan Financing and other sources. Internal financing intends on the approach of reinvesting of company's earning either for meeting working capital needs or for expanding company's operations. Security Financing is all about issuing of company's shares of different kinds. A company could source capital through loan financing which is determined as an agreement that it would repay principal amount it to the lender in a specified time along with monthly interest payments. Lease financing is actually an agreement between two parties under which one party is interested in using other party's asset for a specified period. Venture capital is considered as relatively new source of finance. From an investor point of view, it is most risky investment. In acco


Book Synopsis Costs and Benefits of Raising Capital Through Different Sources by : Junaid Javaid

Download or read book Costs and Benefits of Raising Capital Through Different Sources written by Junaid Javaid and published by . This book was released on 2015-08-20 with total page 40 pages. Available in PDF, EPUB and Kindle. Book excerpt: Master's Thesis from the year 2015 in the subject Business economics - Business Management, Corporate Governance, grade: B-, University of Bedfordshire, course: MBA, language: English, abstract: This theory into practice final project is written on the topic of 'Costs & Benefits for Raising Capital through Different Sources'. Major aim of this theory into practice report would be to let know readers about all of form funding sources (that would make possible for the companies in meeting their working capital needs). It has been understood that the method or process of acquiring capital through different sources is termed as Financing Decision. The Corporations are actively recruiting financial managers mainly for the successful execution of financial decision. Generally, there have been various sources of funds that could be utilised by companies for meeting their working capital needs. It has been observed that with the utilisation of funds from different sources not only made possible for the underlying firm to survive through difficult periods but would help it in expanding its operations as well. All of these sources are classified in to five main classes: Internal Financing, Security Financing, Lease Financing, Loan Financing and other sources. Internal financing intends on the approach of reinvesting of company's earning either for meeting working capital needs or for expanding company's operations. Security Financing is all about issuing of company's shares of different kinds. A company could source capital through loan financing which is determined as an agreement that it would repay principal amount it to the lender in a specified time along with monthly interest payments. Lease financing is actually an agreement between two parties under which one party is interested in using other party's asset for a specified period. Venture capital is considered as relatively new source of finance. From an investor point of view, it is most risky investment. In acco

Costs & Benefits of each Source of Capital

Costs & Benefits of each Source of Capital

Author: Junaid Javaid

Publisher: GRIN Verlag

Published: 2014-09-24

Total Pages: 41

ISBN-13: 3656748977

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Seminar paper from the year 2013 in the subject Business economics - Business Management, Corporate Governance, grade: C, University of Bedfordshire, course: MSc Finance & Business Management, language: English, abstract: There are many cases that have been observed where the shareholders’ capital was not adequate enough to support the company’s working capital requirement which matter a lot to the companies’ growth and survival. Majority of time it has been observed and analysed that the companies considering to meet its working capital through the external sources are aware of every aspect of the different financial sources. It is important for the companies to take certain parameter (interest rate, term of usage, impact on company’s financial leverage, conditions of lending agreement, time to get the lending approval and the impact of proposed source on the company’s financial ratios) into consideration while making the financing decisions. The theory of Capital Structure is extensively be used to get insight that how much risky is the company’s approach in using external sources (prominently debt). The Trade-off theory intended that companies must have to balance the costs and the benefits of debts flow within the enterprises. Different sources of capital can be classified in various manners but for the convenience, the all of these sources are classified in to following categories (Security Financing, Internal Financing, Loan Financing, Lease Financing and Other sources). Shanghai General Motors Corporation (SGMC) is regarded as the largest international joint venture undertook in China. This venture was made for the accomplishment of long-term goals established by the both firms’ executive. The capital contributed by General Motors (GM)-China of $350 Million to the SGMC. $350 Million equivalent was contributed by SAIC to the SGMC. For meeting the working capital needs, SGMC required $821 Million Of which about the equivalent of $460 Million contributed through Chinese Banks and the Equivalent of of $361 Million was contributed through the International Banks. It has been understood that Different sources of capital have their positive and weak aspects to the associated companies. Therefore the company should use more than source of capital which thus would be resulted in forming company’s efficient portfolio of financing. In this manner by capitalising on different sources of capital, the company would be able to leverage its risk level. And if the associated company is risk averse then it should go for Security Financing or Loan Financing.


Book Synopsis Costs & Benefits of each Source of Capital by : Junaid Javaid

Download or read book Costs & Benefits of each Source of Capital written by Junaid Javaid and published by GRIN Verlag. This book was released on 2014-09-24 with total page 41 pages. Available in PDF, EPUB and Kindle. Book excerpt: Seminar paper from the year 2013 in the subject Business economics - Business Management, Corporate Governance, grade: C, University of Bedfordshire, course: MSc Finance & Business Management, language: English, abstract: There are many cases that have been observed where the shareholders’ capital was not adequate enough to support the company’s working capital requirement which matter a lot to the companies’ growth and survival. Majority of time it has been observed and analysed that the companies considering to meet its working capital through the external sources are aware of every aspect of the different financial sources. It is important for the companies to take certain parameter (interest rate, term of usage, impact on company’s financial leverage, conditions of lending agreement, time to get the lending approval and the impact of proposed source on the company’s financial ratios) into consideration while making the financing decisions. The theory of Capital Structure is extensively be used to get insight that how much risky is the company’s approach in using external sources (prominently debt). The Trade-off theory intended that companies must have to balance the costs and the benefits of debts flow within the enterprises. Different sources of capital can be classified in various manners but for the convenience, the all of these sources are classified in to following categories (Security Financing, Internal Financing, Loan Financing, Lease Financing and Other sources). Shanghai General Motors Corporation (SGMC) is regarded as the largest international joint venture undertook in China. This venture was made for the accomplishment of long-term goals established by the both firms’ executive. The capital contributed by General Motors (GM)-China of $350 Million to the SGMC. $350 Million equivalent was contributed by SAIC to the SGMC. For meeting the working capital needs, SGMC required $821 Million Of which about the equivalent of $460 Million contributed through Chinese Banks and the Equivalent of of $361 Million was contributed through the International Banks. It has been understood that Different sources of capital have their positive and weak aspects to the associated companies. Therefore the company should use more than source of capital which thus would be resulted in forming company’s efficient portfolio of financing. In this manner by capitalising on different sources of capital, the company would be able to leverage its risk level. And if the associated company is risk averse then it should go for Security Financing or Loan Financing.

Cost of Capital in Litigation

Cost of Capital in Litigation

Author: Shannon P. Pratt

Publisher: John Wiley & Sons

Published: 2010-10-26

Total Pages: 323

ISBN-13: 0470944919

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Cost of Capital in Litigation addresses cost of capital issues in litigation and discusses major decisions, highlighting how to avoid errors that have often been made by experts. The book helps the attorney and valuation expert understand the decisions within the context of the theory of cost of capital and includes a chapter on cross-examining experts on cost of capital issues. Throughout, there are citation to relevant material and cross-reference to Cost of Capital: Applications and Examples, Fourth Edition.


Book Synopsis Cost of Capital in Litigation by : Shannon P. Pratt

Download or read book Cost of Capital in Litigation written by Shannon P. Pratt and published by John Wiley & Sons. This book was released on 2010-10-26 with total page 323 pages. Available in PDF, EPUB and Kindle. Book excerpt: Cost of Capital in Litigation addresses cost of capital issues in litigation and discusses major decisions, highlighting how to avoid errors that have often been made by experts. The book helps the attorney and valuation expert understand the decisions within the context of the theory of cost of capital and includes a chapter on cross-examining experts on cost of capital issues. Throughout, there are citation to relevant material and cross-reference to Cost of Capital: Applications and Examples, Fourth Edition.

Benefits and Costs of Bank Capital

Benefits and Costs of Bank Capital

Author: Jihad Dagher

Publisher: International Monetary Fund

Published: 2016-03-03

Total Pages: 38

ISBN-13: 1498387713

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The appropriate level of bank capital and, more generally, a bank’s capacity to absorb losses, has been at the core of the post-crisis policy debate. This paper contributes to the debate by focusing on how much capital would have been needed to avoid imposing losses on bank creditors or resorting to public recapitalizations of banks in past banking crises. The paper also looks at the welfare costs of tighter capital regulation by reviewing the evidence on its potential impact on bank credit and lending rates. Its findings broadly support the range of loss absorbency suggested by the Financial Stability Board (FSB) and the Basel Committee for systemically important banks.


Book Synopsis Benefits and Costs of Bank Capital by : Jihad Dagher

Download or read book Benefits and Costs of Bank Capital written by Jihad Dagher and published by International Monetary Fund. This book was released on 2016-03-03 with total page 38 pages. Available in PDF, EPUB and Kindle. Book excerpt: The appropriate level of bank capital and, more generally, a bank’s capacity to absorb losses, has been at the core of the post-crisis policy debate. This paper contributes to the debate by focusing on how much capital would have been needed to avoid imposing losses on bank creditors or resorting to public recapitalizations of banks in past banking crises. The paper also looks at the welfare costs of tighter capital regulation by reviewing the evidence on its potential impact on bank credit and lending rates. Its findings broadly support the range of loss absorbency suggested by the Financial Stability Board (FSB) and the Basel Committee for systemically important banks.

The Capitalistic Cost-Benefit Structure of Money

The Capitalistic Cost-Benefit Structure of Money

Author: Dieter Suhr

Publisher: Springer Science & Business Media

Published: 2012-12-06

Total Pages: 146

ISBN-13: 3642747582

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This study is concerned with the time-honored problem of the change that is induced when money enters into the economy. As far back as Aristotle (Politics, pp. 1135-1143) the still-unanswered question regarding the dichotomy of the real-exchange and the monetary economy was raised. He contrasted Oeconomic, where people strive to obtain real utilities (household management), to Chrematistic, where they use money to make more money (art of wealth-acquisition): The true wealth consists of such values in use; for the quantity of possession of this kind, capable of making life pleasant, is not unlimited. There is, however, a second mode of acquiring things, to which we may by preference and with correctness give the name of Chrematistic, and in this case there appear to be no limits to riches and pos sessions. Trade does not in its nature belong to Chrematistic, for here the exchange has reference only to what is necessary to themselves. ( . . . ) In the case of Chrematistic, circulation is the source of riches. And it appears to revolve about money, for money is the beginning and end of this kind of exchange. Therefore also riches, such as Chre matistic strives for, are unlimited. ( . . . ) Oeconomic, not Chrematistic, has a limit ( . . . ;) the object of the former is something different from money, of the latter the augmenta tion of money ( . . .


Book Synopsis The Capitalistic Cost-Benefit Structure of Money by : Dieter Suhr

Download or read book The Capitalistic Cost-Benefit Structure of Money written by Dieter Suhr and published by Springer Science & Business Media. This book was released on 2012-12-06 with total page 146 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study is concerned with the time-honored problem of the change that is induced when money enters into the economy. As far back as Aristotle (Politics, pp. 1135-1143) the still-unanswered question regarding the dichotomy of the real-exchange and the monetary economy was raised. He contrasted Oeconomic, where people strive to obtain real utilities (household management), to Chrematistic, where they use money to make more money (art of wealth-acquisition): The true wealth consists of such values in use; for the quantity of possession of this kind, capable of making life pleasant, is not unlimited. There is, however, a second mode of acquiring things, to which we may by preference and with correctness give the name of Chrematistic, and in this case there appear to be no limits to riches and pos sessions. Trade does not in its nature belong to Chrematistic, for here the exchange has reference only to what is necessary to themselves. ( . . . ) In the case of Chrematistic, circulation is the source of riches. And it appears to revolve about money, for money is the beginning and end of this kind of exchange. Therefore also riches, such as Chre matistic strives for, are unlimited. ( . . . ) Oeconomic, not Chrematistic, has a limit ( . . . ;) the object of the former is something different from money, of the latter the augmenta tion of money ( . . .

The Real Cost of Capital

The Real Cost of Capital

Author: Tim Ogier

Publisher: Pearson UK

Published: 2012-12-27

Total Pages: 272

ISBN-13: 0273748254

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"This book is required reading for anyone involved in the practical issues of cost of capital decisions. It is written in a way that engages the novice, and yet challenges the professional to rethink the real issues." Brendan Scholey, Bloomberg. The cost of capital is the fundamental financial tool for business decision-making. It drives measures of value creation and destruction, and forms the basis of financial analysis using cash flow and other frameworks. This book is here to help the business world to use the cost of capital for real. The Real Cost of Capital describes the key issues in understanding and using the cost of capital today, taking principles from the world of managerial finance and putting them into the context of major investment decisions. Should, for example, a company use its own cost of capital to appraise new investments and acquisitions? What cost of capital might a US company use when appraising an investment in, say, the Philippines? For a typical investment, which type of risk is more important – specific risk or systematic risk? How should these risks be reflected in, say, a venture capital situation? Debt is cheaper than equity – so why don’t companies raise more debt than they do? Most practitioners use the weighted average cost of capital ("WACC") in valuation and appraisal – but when should an alternative approach be used? This book will help you find the answers. The Real Cost of Capital is required reading for anyone involved in the practical issues of cost of capital decisions. It brings together the latest academic thinking with practical requirements in a real-life context, and the authors have used their combined experience of advising governments and international blue-chip companies to bring readers up to date with current issues. The Real Cost of Capital includes chapters on choosing models, calculating the cost of capital using real-life data sources, and calculating the cost of capital in an international context (a subject not usually covered in academic texts). It also has chapters and worked examples on the practical application of the cost of capital in business valuations, high-tech situations and the wide range of premia and discounts that can be applied to the cost of capital. The book has an associated website www.costofcapital.net which contains some current links. The site also gives access to tax rate information and financial data relevant to using cost of capital around the world. The objective is to make sure that the corporate planner, student, adviser or decision maker, when she/he is on the road, can simply open the book or dial in and take advantage of a wealth of decision-making support, without the pain of extended academic study.


Book Synopsis The Real Cost of Capital by : Tim Ogier

Download or read book The Real Cost of Capital written by Tim Ogier and published by Pearson UK. This book was released on 2012-12-27 with total page 272 pages. Available in PDF, EPUB and Kindle. Book excerpt: "This book is required reading for anyone involved in the practical issues of cost of capital decisions. It is written in a way that engages the novice, and yet challenges the professional to rethink the real issues." Brendan Scholey, Bloomberg. The cost of capital is the fundamental financial tool for business decision-making. It drives measures of value creation and destruction, and forms the basis of financial analysis using cash flow and other frameworks. This book is here to help the business world to use the cost of capital for real. The Real Cost of Capital describes the key issues in understanding and using the cost of capital today, taking principles from the world of managerial finance and putting them into the context of major investment decisions. Should, for example, a company use its own cost of capital to appraise new investments and acquisitions? What cost of capital might a US company use when appraising an investment in, say, the Philippines? For a typical investment, which type of risk is more important – specific risk or systematic risk? How should these risks be reflected in, say, a venture capital situation? Debt is cheaper than equity – so why don’t companies raise more debt than they do? Most practitioners use the weighted average cost of capital ("WACC") in valuation and appraisal – but when should an alternative approach be used? This book will help you find the answers. The Real Cost of Capital is required reading for anyone involved in the practical issues of cost of capital decisions. It brings together the latest academic thinking with practical requirements in a real-life context, and the authors have used their combined experience of advising governments and international blue-chip companies to bring readers up to date with current issues. The Real Cost of Capital includes chapters on choosing models, calculating the cost of capital using real-life data sources, and calculating the cost of capital in an international context (a subject not usually covered in academic texts). It also has chapters and worked examples on the practical application of the cost of capital in business valuations, high-tech situations and the wide range of premia and discounts that can be applied to the cost of capital. The book has an associated website www.costofcapital.net which contains some current links. The site also gives access to tax rate information and financial data relevant to using cost of capital around the world. The objective is to make sure that the corporate planner, student, adviser or decision maker, when she/he is on the road, can simply open the book or dial in and take advantage of a wealth of decision-making support, without the pain of extended academic study.

For-Profit Enterprise in Health Care

For-Profit Enterprise in Health Care

Author: Institute of Medicine

Publisher: National Academies Press

Published: 1986-01-01

Total Pages: 580

ISBN-13: 0309036437

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"[This book is] the most authoritative assessment of the advantages and disadvantages of recent trends toward the commercialization of health care," says Robert Pear of The New York Times. This major study by the Institute of Medicine examines virtually all aspects of for-profit health care in the United States, including the quality and availability of health care, the cost of medical care, access to financial capital, implications for education and research, and the fiduciary role of the physician. In addition to the report, the book contains 15 papers by experts in the field of for-profit health care covering a broad range of topicsâ€"from trends in the growth of major investor-owned hospital companies to the ethical issues in for-profit health care. "The report makes a lasting contribution to the health policy literature." â€"Journal of Health Politics, Policy and Law.


Book Synopsis For-Profit Enterprise in Health Care by : Institute of Medicine

Download or read book For-Profit Enterprise in Health Care written by Institute of Medicine and published by National Academies Press. This book was released on 1986-01-01 with total page 580 pages. Available in PDF, EPUB and Kindle. Book excerpt: "[This book is] the most authoritative assessment of the advantages and disadvantages of recent trends toward the commercialization of health care," says Robert Pear of The New York Times. This major study by the Institute of Medicine examines virtually all aspects of for-profit health care in the United States, including the quality and availability of health care, the cost of medical care, access to financial capital, implications for education and research, and the fiduciary role of the physician. In addition to the report, the book contains 15 papers by experts in the field of for-profit health care covering a broad range of topicsâ€"from trends in the growth of major investor-owned hospital companies to the ethical issues in for-profit health care. "The report makes a lasting contribution to the health policy literature." â€"Journal of Health Politics, Policy and Law.

Investment Valuation

Investment Valuation

Author: Aswath Damodaran

Publisher: John Wiley & Sons

Published: 2002-01-31

Total Pages: 1014

ISBN-13: 9780471414902

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Valuation is a topic that is extensively covered in business degree programs throughout the country. Damodaran's revisions to "Investment Valuation" are an addition to the needs of these programs.


Book Synopsis Investment Valuation by : Aswath Damodaran

Download or read book Investment Valuation written by Aswath Damodaran and published by John Wiley & Sons. This book was released on 2002-01-31 with total page 1014 pages. Available in PDF, EPUB and Kindle. Book excerpt: Valuation is a topic that is extensively covered in business degree programs throughout the country. Damodaran's revisions to "Investment Valuation" are an addition to the needs of these programs.

Cost-Benefit Analysis

Cost-Benefit Analysis

Author: Euston Quah

Publisher: Routledge

Published: 2011-10-20

Total Pages: 197

ISBN-13: 1136621202

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Cost-benefit analysis (CBA) is the systematic and analytical process of comparing benefits and costs in evaluating the desirability of a project or programme, often of a social nature and for society as a whole. CBA is fundamental to government decision-making and can be an effective tool for informed decisions on the use of society's scarce resources. This book highlights the main concepts and principles of cost-benefit analysis used in real life cases and actual applications. The book contains rich cases, materials and examples of real life CBA applications with emphasis both on physical and non-physical projects and infrastructure developments in Asia and beyond. The book also discusses techniques frequently used in applied CBA. The first part of the book introduces the key concepts and principles of CBA before Part Two covers some pertinent issues relating to CBA, such as the recent trend of using behavioural economics and frequently used techniques in applied CBA. Finally, in Part Three, case studies are written up to illustrate how CBA is done, and questions for the readers and students to ponder are raised at the end of each chapter. The scope of the case studies is more than just physical infrastructures but will include public sector policies and programmes covering a host of social policies as in health, education, social welfare programmes, and the environment. For each case, there will be illustrations of the key concepts and principles of CBA used. Undertakings analyzed include: the Three Gorges Dam in China the 2008 Beijing Olympics the Costs of Global Warming the Jamuna Bridge in Bangladesh The case studies, many of which have taken or are to take place in developing countries provide a rich background to the principles of the method, and are accompanied by a wealth of explanatory material. As well as being suitable for courses in Cost-Benefit Analysis, Public Finance, Environmental and Health Economics, the book should be of interest to all public policy decision makers and planners.


Book Synopsis Cost-Benefit Analysis by : Euston Quah

Download or read book Cost-Benefit Analysis written by Euston Quah and published by Routledge. This book was released on 2011-10-20 with total page 197 pages. Available in PDF, EPUB and Kindle. Book excerpt: Cost-benefit analysis (CBA) is the systematic and analytical process of comparing benefits and costs in evaluating the desirability of a project or programme, often of a social nature and for society as a whole. CBA is fundamental to government decision-making and can be an effective tool for informed decisions on the use of society's scarce resources. This book highlights the main concepts and principles of cost-benefit analysis used in real life cases and actual applications. The book contains rich cases, materials and examples of real life CBA applications with emphasis both on physical and non-physical projects and infrastructure developments in Asia and beyond. The book also discusses techniques frequently used in applied CBA. The first part of the book introduces the key concepts and principles of CBA before Part Two covers some pertinent issues relating to CBA, such as the recent trend of using behavioural economics and frequently used techniques in applied CBA. Finally, in Part Three, case studies are written up to illustrate how CBA is done, and questions for the readers and students to ponder are raised at the end of each chapter. The scope of the case studies is more than just physical infrastructures but will include public sector policies and programmes covering a host of social policies as in health, education, social welfare programmes, and the environment. For each case, there will be illustrations of the key concepts and principles of CBA used. Undertakings analyzed include: the Three Gorges Dam in China the 2008 Beijing Olympics the Costs of Global Warming the Jamuna Bridge in Bangladesh The case studies, many of which have taken or are to take place in developing countries provide a rich background to the principles of the method, and are accompanied by a wealth of explanatory material. As well as being suitable for courses in Cost-Benefit Analysis, Public Finance, Environmental and Health Economics, the book should be of interest to all public policy decision makers and planners.

Estimating the Costs of Financial Regulation

Estimating the Costs of Financial Regulation

Author: Mr.Andre Santos

Publisher: International Monetary Fund

Published: 2012-09-11

Total Pages: 43

ISBN-13: 147551008X

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Staff Discussion Notes showcase the latest policy-related analysis and research being developed by individual IMF staff and are published to elicit comment and to further debate. These papers are generally brief and written in nontechnical language, and so are aimed at a broad audience interested in economic policy issues. This Web-only series replaced Staff Position Notes in January 2011.


Book Synopsis Estimating the Costs of Financial Regulation by : Mr.Andre Santos

Download or read book Estimating the Costs of Financial Regulation written by Mr.Andre Santos and published by International Monetary Fund. This book was released on 2012-09-11 with total page 43 pages. Available in PDF, EPUB and Kindle. Book excerpt: Staff Discussion Notes showcase the latest policy-related analysis and research being developed by individual IMF staff and are published to elicit comment and to further debate. These papers are generally brief and written in nontechnical language, and so are aimed at a broad audience interested in economic policy issues. This Web-only series replaced Staff Position Notes in January 2011.