The Cost of Capital (2)
GE also invests by acquiring other companies. In recent years, GE has spent billions annually to acquire hundreds of companies ... -Western when it decided to publish this textbook. Mergers and acquisitions often require enormous ... return on capital, and the cost of capital, for each of these acquisitions, and then make [more...]
Date: 2009-03-27 07:28:11
Blog posts
(246)
|
Videos
(182)
ACCOUNTING/FINANCIAL MANAGEMENT & MERGERS/ACQUISITION CONSULTING
Insure that your business survives and thrives during challenging times. VENTURE CONSULTING is a cost effective strategic solution partner focusing primarily on meeting the needs of small to mid-sized businesses in numerous industries by providing assistance in key areas such: ACCOUNTING/FINANCIAL MANAGEMENT AND IT SOLUTIONS – all phases of accounting through financial statements, strategic planning/budgeting, cash management, working capital management and raising capital, cost containment [more...]
Date: 2009-08-21 18:51:08
MOTLEY FOOL: The Last Bull on Berkshire?
By Whitney Tilson February 14, 2000 Berkshire Hathaway (NYSE: BRK.A) , the Boring Port's largest holding by a significant margin ( ... in the long run are able to invest capital at high returns -- substantially higher than their cost of capital -- and increase the amount of capital they are able to invest at these high rates over [more...]
Date: 2009-03-14 06:42:00
EVA and Keppel Corp
Quiet - my 4.30pm picnic lunch on Friday lastWhat is EVA?Economic value-added (EVA) ... to a higher Weighted Average Cost of Capital (WACC) partially offset by lower EVA Capital. WACC ... is after-tax operating profit minus the dollar cost of capital employed. It is measured in dollar [more...]
Date: 2008-11-02 01:00:00
Tips for F9 Financial Management (int) Dec 2008
The topic areas covered by each question are not fixed and all areas of the syllabus are examinable as stated in the examiner’s approach ... cost CAPITAL RATIONING E Business Finance 1. Gearing - problems of high & financial risk(ratio) 2. Methods of raising EQUITY finance - rights issue, placing, public offer… F Cost of Capital [more...]
Date: 2008-11-27 11:07:22
§315 The studies for this semester
I know that no one is interested, but I’ve made it a tradition to present you with my studies every time a new semester starts ... and Control 3. The Management of Working Capital 4. The Management of Fixed Assets 5. Long Term Financing 6. Valuation, Capital Structure and the Cost of Capital [more...]
Date: 2009-03-17 17:38:00
Green IT for Desktops
BIDMC has worked diligently to reduce operating costs and avoid staff reductions . IT is doing its part to reducte operating and capital costs ... about the kilowatt cost of Electronic Health Records, since the country will be implementing EHRs for 664,000 clinicians as part of the Stimulus Bill. I'm working with my energy experts to calculate [more...]
Date: 2009-03-25 10:00:00
Calculating EVA
Proponents of EVA claim it is a better measure of a company’s success than is net income ... (The cost of capital) × (Total debt and owners’ equity) EVA = NOPAT – (WACC) × (L + OE) Where: NOPAT = Net operating profit after taxes WACC = Weighted average cost of capital (as a percentage [more...]
Date: 2008-12-15 08:19:42
The Valuation of Mining Companies – Post #3 of 17
Background to this Series of Posts This is the 3rd in a Series of 17 Posts that will be published on this Blog each Tuesday and Thursday from September 16 to November 11. All 17 Posts will be filed under the Blog Category ‘Valuation ... infrastructure; • capital intensive where actual capital costs incurred in constructing [more...]
Date: 2008-09-23 11:46:16
Key Banking & Financial Terms
Very often, a financial analyst will find himself building a financial model that involves analysis or forecasting of a securities transaction such ... Valuation - WACC Understanding Return on Capital and Cost of Capital [more...]
Date: 2009-03-23 06:00:43
Xsigo Systems To Support New Intel Xeon Processor Family
————————————————————————————————————— ————————————————————————————————————— Xsigo Systems today announced support for Intel’s next-generation ... and capital costs associated with server I/O. Xsigo consolidates the I/O infrastructure and replaces ... include: 100 times faster I/O configuration management 30 percent less power consumption 70 [more...]
Date: 2009-03-30 19:43:33
Royal Gold (RGLD): Investing in gold royalties
"Stocks are so low that the best are bound to attract bargain-hunters ... eventually," says Timothy Lutts ... is that it involves no capital costs, no operating costs and no legal or environmental liabilities. The major [more...]
Date: 2009-03-12 18:20:00
UK water – is Ofwat being realistic?
Yesterday’s eagerly awaited draft determination announcement by Ofwat, regarding the water pricing regime between April 2010 and March 2015, confirmed modest price cuts in real terms and a near £21 billion five-year capital expenditure plan. Good news for consumers. Shareholders, though, were less happy as Ofwat chose a 4.5% post-tax Weighted Average Cost of Capital (WACC) figure, which was below market expectations. No wonder shares in the remaining publicly quoted water companies fell. [more...]
Date: 2009-07-24 11:39:21
Small Farms
Small farms, in my opinion, are not the future of agriculture. Why not? Because farming is a business, an industry ... easier than harvesting with scythes would be. Mechanized grain farming requires lots of capital and lots of land (that’s capital too). A tractor costs over $100,000 . A combine harvester runs [more...]
Date: 2009-04-07 01:00:32
Facebook Seeking Up To $100 Million In Financing
Facebook has raised $500 million so far, but with costs mounting and ad-revenue growth slowing, that's not enough ... . "Facebook always seeks to keep its costs of capital as low as possible, particularly in these uncertain ... Capital, which had provided the company with $100 million in venture lending for equipment leases [more...]
Date: 2009-03-27 21:13:28
Capital Management: Concluding Thoughts
Gary Venter, Managing Director, Instrat®ContactBalance is among the fundamental ingredients of financial strength ... average cost of capital (WACC), increased flexibility, and ultimately firm value growth.Capital ... . Outside capital, retained earnings, and reinsurance all contribute to a firm’s ability to absorb [more...]
Date: 2009-03-20 05:00:14
Going around in circles on the toxic assets
Who would have thought there might come a day when we’d be asked to compete for our share in a pile of junk?! ... government funding, thus lowering potential buyers’ cost of capital; and (b) by encouraging a simultaneous ... assets considerably understate their “fair” price due to the illiquidity of markets, a high cost [more...]
Date: 2009-03-08 02:30:00
The Weighted Average Cost of Capital (2)
Although NCC and other firms try to stay close to their target capital structures, they frequently deviate in the short run for several reasons ... high if small amounts of capital are raised. Thus, it is inefficient and expensive to issue ... fluctuating around its target capital structure rather than staying right on it all the time. This situation [more...]
Date: 2009-03-29 07:37:11
História Econômica do Brasil – Federalismo fiscal em 1891-1930
Endowments, Fiscal Federalism, and the Cost of Capital for States: Evidence from Brazil, 1891-1930 André C. Martínez Fritscher - Aldo Musacchio Abstract There is a large literature that aims to explain what determines country risk (defined as the difference between the yield of a sovereign‘s bonds and the risk free rate). In this paper, we contribute to the discussion by arguing that an important explanatory factor is the impact that commodities have on the capacity to pay. [more...]
Date: 2009-10-18 09:31:33
The Perfect WACC
After I finish my first read of a MBA case, there's nothing I like to do better than to break out Excel and start building a model ... and Acquisitions case: "The (Weighted Average Cost of Capital) in your (Discounted Cash Flow) valuation is important. But getting the perfect WACC doesn't mean you'll make the right decision." I am going [more...]
Date: 2008-11-05 15:23:00
The Perfect WACC
After I finish my first read of a MBA case, there's nothing I like to do better than to break out Excel and start building a model ... and Acquisitions case: "The (Weighted Average Cost of Capital) in your (Discounted Cash Flow) valuation is important. But getting the perfect WACC doesn't mean you'll make the right decision." I am going [more...]
Date: 2008-11-13 13:42:04
Venture Capital: optional, not essential
I love Paul Graham’s essays. Just been reading one in which he’s pondering what the impact of the recession will be on venture capital ... have pushed the cost of starting a startup down into the noise. In a lot of startups — probaby most ... completely. Someone running a startup is always calculating in the back of their mind how much ‘runway’ [more...]
Date: 2009-03-03 22:12:22
Yield Investing versus traditional Value Investing
Photo by Lachlan Hardy Motivation No one doubts that the current economic crisis is one of the worse the world experience since the great ... after I bought in First Ship Lease Trust (FSLT) and Cambridge Industrial Trust (CIT) . Despite ... , both paid generally consistent and substantial dividends. I recall my target cost of capital [more...]
Date: 2009-03-18 01:00:25
Inventory-Related Costs (2)
Enter the highly recommended inventory-control specialist with charts, formulas, computers and software ... of the three and has several components, the largest of which is cost of capital. There are, however ... package deal, including training your people in its use for a total cost of $25,000 in upfront licensing [more...]
Date: 2009-03-16 02:17:38
A Key to Google’s Data Center Efficiency: One Backup Battery Per Server
One of the geekiest, yet often obsessed-about, aspects of Google’s innovations is its data centers ... can be crucial to a web business — a few years ago a power outage in San Francisco’s SOMA District shut ... the distributed model is also significantly cheaper in capital costs than the centralized UPS design [more...]
Date: 2009-04-01 20:06:07
MU’s 2Q Result Misses - Zacks Tale of the Tape
Micron Technology Inc. ( MU ) reported a fiscal second-quarter loss of 81 cents per share, excluding items, late Thursday, ... % year-over-year to $993 million, as weak demand for chips led to a fall in average selling prices. "We are actively managing our overall cost structure, capital expenditures and technology execution [more...]
Date: 2009-04-03 16:58:07
The Technology Behind Asset Managemet
Business is important to maintain the confidentiality of data, integrated and available ... , capital budgeting, cost accounting, financial planning and reporting. With the administration ... your knowledge of information systems has three parts: hardware, software and communications [more...]
Date: 2009-03-11 00:45:28
Why We Need Mark-to-Market Relief
Treasury Secretary Tim Geithner's $1 trillion Public-Private Investment Program will likely explode already-surging taxpayer liabilities while doing ... ' regulatory capital -- would cost taxpayers virtually nothing and let the market value these assets ... Services Committee hearing earlier this month, Democrats like Ed Perlmutter (Colo.) and Capital Marke [more...]
Date: 2009-03-23 21:06:22
Warren Buffett Versus Modern Portfolio Theory
In this Ask The Expert With Larry Swedroe article, ... . He provides them with economies of scale, lower cost of capital and the benefits of his managerial wisdom ... : Other than by taking the self-denigrating stance: “I am not an above average investor”, how [more...]
Date: 2009-02-23 00:10:46
Guest Post: Don?t Let Crisis Kill Long-Term Growth
Amid new details for the government stimulus plan and a new bailout for Bank of America, ... in software, hardware, telecommunications, pharmaceuticals, biotechnology, entertainment, and retail ... management and reduce the cost of capital. The other pillar of economic growth is reallocation. Innovation [more...]
Date: 2009-01-16 09:02:00
Guest Post: Don’t Let Crisis Kill Long-Term Growth
Amid new details for the government stimulus plan and a new bailout for Bank of America, ... in software, hardware, telecommunications, pharmaceuticals, biotechnology, entertainment, and retail ... management and reduce the cost of capital. The other pillar of economic growth is reallocation. Innovation [more...]
Date: 2009-01-16 09:02:00
Leveraging Capex-Free Managed Hosting (Yankee Group)
SMBs have used IT strategies to compete effectively with both large enterprises and other small companies ... . IT hosting presents an ideal alternative, in which hardware, software, and management are offered ... . But as SMBs adopt more technology, they struggle with managing it. High capital costs [more...]
Date: 2009-03-16 09:32:46
What I've Learned About the Stock Market
Anyone who has a retirement fund or personal investments has an interest in the stock market ... up for my nieces and nephews and track at trustfundsforkids .com. When the stock market started cratering ... payments - and most companies can't profit when their cost of capital is that high. I won't even [more...]
Date: 2009-03-28 16:10:00
Villas at Forest Park now open
The Villas at Forest Park, a new apartment home community for senior citizens, is completed and open for residents to move in ... Finance Agency, as well as conventional financing through Churchill Mortgage Investment and Alliant Capital. The total cost of the project was approximately $7.3 million. “This type of partnership [more...]
Date: 2009-04-06 15:15:16
Chinalco’s Easy Money in Tough Times
From the WSJ’s Deal Journal blog: One big reason Chinese companies are starting to make a big splash in global M& ... deal Chinese aluminum-maker Chinalco is getting from its banks on $21 billion in financing ... between its cost of capital and coupon payments from Rio, though the spread could narrow if Libor rates [more...]
Date: 2009-03-31 12:25:56
Readings: Designing Dubai, LLPs in India, Private equity pessimism
TheStar: Dubai: How not to build a city … in Dubai, the visitor realizes in nanoseconds that this is a city dedicated, enthusiastically, ... LLP firms. Under the LLP structure, the liability of a partner is limited to his stake ... Act. Mint: The cost of capital of private equity is very high I think a lot of private [more...]
Date: 2009-04-06 04:46:19
Chevron Corporation, Major Investments in Upstream and Downstream Shaping the Company for Growth, Financial Strength
Posted on March 10, 2009 – 2:28 pm | by oilandgaspress.com NEW YORK–(BUSINESS WIRE)–Mar. 10, 2009– Chevron Corporation (NYSE: CVX) ... major capital projects completed and strong competitive performance in the key areas of earnings per barrel, cost structure and return on capital employed. Kirkland also provided details on how [more...]
Date: 2009-03-10 13:28:12
“Private” Investors in Citigroup
From a Wall Street Journal article on possible plans for a larger federal ownership stake in Citigroup: Under the scenario being considered, a substantial chunk of the $45 billion in preferred shares held by the government would convert ... , equivalent to a 7.8% stake, in return for pumping capital into Citigroup. The move wouldn’t cost [more...]
Date: 2009-02-23 02:04:05
Bad Mayo
The impact of excessive risk, while already seen, still has more to go in our opinion, especially given a rolling recession by asset class ... ), higher expenses (more oversight costs), and dilution of shares outstanding (insufficient capital ... of Banking”, Financials Analyst, CLSA Markets this morning appear to be the victim of some bad Mayo [more...]
Date: 2009-04-06 16:12:49
Should bailed-out homeowners be required to pay restitution?
by Stan J. Liebowitz The U.S. public is outraged at the $165 million in bonuses paid to employees of insurance giant American International ... the help they need-and recover much of the cost-simply by taxing most of the capital gains ... the repayment contingent on future capital gains. The proposed Obama plan would lower the monthly payments [more...]
Date: 2009-03-25 04:00:58
UTS reiterates rejection of Total bid on `positive developments`` (UTS-Total)
CALGARY _ UTS Energy Corp. (TSX:UTS) says a number of positive developments, including this week`s announced merger of Suncor Energy Inc. (TSX:SU) ... to reject a $616 million acquisition bid by France`s Total.UTS said late Friday the proposed deal ... and cut capital costs at Fort Hills through integration with Suncor`s existing operations.Reducing [more...]
Date: 2009-03-28 22:04:43
Good Money After Bad: U.S. to Up Citi Stake
Here we go again: It looks like you and me and that guy behind the tree are going to be on the hook for a few billion more dollars: ... chunk of the $45 billion in preferred shares held by the government would convert into common stock ... , in return for pumping capital into Citigroup. The move wouldn’t cost taxpayers additional money [more...]
Date: 2009-02-23 01:37:07
Exxon: You've Come a Long Way, Baby!
Yesterday marked the 20th anniversary of the nation's worst oil spill ... ), and an overall global average of $27,495.83 per ton. This is an average per-unit marine oil spill cleanup cost ... of natural capital associated with the production and burning of fossil fuels, we've almost become immune [more...]
Date: 2009-03-25 20:40:03
Purposeful Joint Lie by the Treasury, Fed, FDIC
A magic bailout of Citigroup and Bank of America is underway. Supposedly this bailout will not require any new capital ... to households and businesses. The government will ensure that banks have the capital and liquidity ... out insolvent banks no matter what it costs taxpayers. "We announced on February 10, 2009, a Capital [more...]
Date: 2009-02-23 18:32:00
Monetary and Fiscal Failure, Fraud, and Fear of What’s Next
Even the powerful are worried with the IMF on February 7 saying advanced economies are in “depression (and) the worst cannot be ruled out ... borrowing costs, lower capital flows, weaker investment, and slower future growth at a very grim time [more...]
Date: 2009-03-23 18:13:47
Sell DELL to $7 per Share - Analyst Blog
The rapid decline in corporate profits, highly illiquid capital markets, and the recessionary outlook are likely to dampen corporate capital spending ... , although cost-cutting initiatives have helped boost its bottom line. The company's marketing model [more...]
Date: 2009-04-06 15:22:01
Are you sure you have a strategy? (parte III)
Continuado daqui . . Segue-se a Lógica Económica, algo entre aquilo que considero proposta de valor, ... be a clear idea of how profits will be generated—not just some profits, but profits above the firm's cost of capital. It is not enough to vaguely count on having revenues that are above costs. Unless [more...]
Date: 2009-03-22 11:01:00
You might want to screen the advice from your ‘experts’ a little better …
You can’t fully accept Charles Darwin’s Evolution Theory until you explain the Bombardier Beetle ; equally, ... companies and then manages them. He provides them with economies of scale, lower cost of capital [more...]
Date: 2009-03-14 09:21:21
Monetary and Fiscal Failure, Fraud, and Fear of What's Next
by Steve Lendman Even the powerful are worried with the IMF on February 7 saying advanced economies are in "depression (and) ... countries" (and developed ones as well); they face higher borrowing costs, lower capital flows, weaker [more...]
Date: 2009-03-16 16:26:00
Where the livin' is expensive
A new ranking names Tokyo as the dearest city in the world TOKYO (pictured) ... of the Economist Group, has released its Worldwide Cost of Living survey, and the Japanese capital climbs from last year's seventh place to first.The table's figures represent a weighted average of the prices [more...]
Date: 2009-03-09 17:52:33
1 -
50
of
246
Posts
Page:
First
| <
Preceding
|
Next
>
0
|
1
|
2
