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CAPITAL STRUCTURE AND SHAREHOLDERS VALUE

Corporate finance:Corporate finance encompasses all the undertakings of a business. It looks into how businesses finance their transactions and business events, invest their resources and finally, evaluate the results. Corporate finance is relevant to both large and small businesses. Three fundamental principles that underline corporate finance include investment, financing and the relevant dividend principles (Castle, … Read More»

The Focus of Financial Position Analysis

The best approach to analyzing a government’s financial position is to calculate ratios using total net position (net assets) for the primary government Government’s financial position is about to express monetary relations in the leverage process that shows how funds of primary and local governments are formed and used to satisfy social needs of citizens, … Read More»

Debt Crises of 1982 and 2009

The history usually repeats; as nobody learns the lessons it gives. The world history accounts for more than 10 world financial crises. In 1970th and 1980th arose new wave of crisis. After all, the world debt snowballed from $130 billion in 1973 to some $612 billion in 1982 (Source 2). There are a lot of … Read More»

Overview of the Current Economic Situation (US)

Overview of the Current Economic Situation Question 1 Although it is extremely hard to say, which type of budget deficit is more serious -structural or cyclical, I would undoubtedly opt for structural for the reasons scrutinized below. My first and foremost reason for supporting such an assertion lies in the fact that structural budget deficit … Read More»

Financial Analysis

Introduction Financial analysis is a key instrument to assess the practicability, stability and profitability of an enterprise, project or any other kind of business. Usually it is performed by the experts whose task is to reports taking into account ratios based on financial statements and other official documentation. The purpose of such reports is to … Read More»

“Arbitrage funds rally to back Glencore-Xstrata Merger” Article Review

Alex MacDonald’s article “Arbitrage funds rally to back Glencore-Xstrata Merger” (Wall Street Journal, 11/13/2012) discusses the role of arbitrage funds in the voting on Glencore-Xstrata Merger. The arbitrage funds are planning to support the merger by converting derivatives in Xstrata to direct share ownership. Considering that both companies have been undergoing voting problems and shareholders’ … Read More»

CAPITAL STRUCTURE & SHAREHOLDERS VALUE IN PETRO RABIGH

Petro Rabigh’s long-term loan was 19,015,070,000 Saudi Riyals, while loan from founding shareholders was 4,575,000,000 Saudi Riyals. The total liabilities, all obligations of the company, which arose from its past transactions, were 41,765,999,000 Saudi Riyals. The company’s financial leverage, the indicator, which represents proportion of equity and debt Petro Rabigh is using to finance its … Read More»

Case Study Risk and Insurance

1. April 12th,2012: a water pipe burst in your kitchen while the dinner was being cooked and it produced $67,000 to your home and $4,000 to some small appliances and kitchen items. From the Information provided, under cover A and B, the compensation provided will amount to Coverage A: $220,000 and Coverage B: $22,000, thus … Read More»

Actuary

Actuary is a person who calculates and analyses reasonableness or the consequences of financial risks. Therefore actuaries can work for any company where the financial risk management is needed, such as investment firms and banks, large corporations, consulting companies, government, and insurance companies. To become an actuary, a person should obtain a corresponding educational background … Read More»