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Types of Capital Infusion

Types of Capital Infusion There are several ways that companies can raise additional capital: debt, venture capital, mergers, private equity investment, and public offerings. This research briefly examines these types of capital infusion, and focuses on the initial public offering. All methods of raising capital involve some cost. Raising capital through debt involves taking on interest charges, and companies may not be able to raise funds at competitive rates, depending on their credit history. In some cases, lenders have established debt-to-equity ratios which must be maintained by the company, which makes debt an unacceptable way to raise capital. Venture capitalists look for a high rate of return on investments (30…
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Rights of Secured Creditor

Rights of Secured Creditor Rights of Secured Creditor in Australia and New Zealand Generally, secured creditors are granted similar priority rights over other creditors under the 1993 Companies Act of New Zealand and the 2001 Corporations Act of Australia. However, such rights do differ in at least one significant way in each country. Under both legislative schemes, secured creditors are granted a priority of recovery up to the value of their security interest from the liquidated assets of the company (See Companies Act, 1003, Part 16.305(3)(a); Corporations Act, 2001, 5.3A). Also, in both countries, debts in excess of the secured creditorsÆ security interests enjoy no greater recovery priority than the…
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Ratio Analysis of NUMMI

Ratio Analysis of NUMMI According to an essay by Michael C. Dennis published on the Anscers website, a ratio is simply a mathematical relationship between two numbers. Investors, creditors, bankers and other stakeholders use financial ratios to chart a company's progress, uncover trends and point to potential problem areas. According to Dennis, the following ratios would be helpful in evaluating NUMMI: 1. Liquidity Ratios: These ratios indicate the ease of converting current assets into cash. Liquidity involves a company's ability to meet current obligations. Liquidity ratios include the Current and Quick Ratio. The Current Ratio formula is: Current Assets divided by Current Liabilities. The current ratio measures financial liquidity. The…
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Micro and Macro Aspects of Life in Brooklyn

Micro and Macro Aspects of Life in Brooklyn This study will describe both the micro and macro aspects of life in the Greenpoint-Williamsburg section of Brooklyn, New York, focusing on five topics covered in Ida Susser's Norman Street: Poverty and Politics in an Urban Neighborhood. The topics to be covered are the welfare system and its regulations, landlords and tenants, the block association and its role in "making things work," kinship and friendship, and racial conflict. The basic argument of Susser's book is that the micro aspects of life in this neighborhood are profoundly affected by the macro forces of New York City, the state and the nation. As Susser…
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Leading Economic Indicators

Leading Economic Indicators According to an article in World Almanac Book of Facts, 2003, leading economic indicators are those that lend to rise or fall in advance of the rest of the economy. The index of leading economic indicators is a composite of eleven economic measurements developed to help forecast likely changes in the economy as a whole. The conventional is as follows: Typically, three consecutive monthly leading economic indicator changes in the same direction suggest a turning point in the economy. The components are: Building permits, durable order backlog, The M2 money supply which includes all coins, currency held by the public, travelers checks, checking account balances, automatic transfer…
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International Trade Since the Colonial Period

International Trade Since the Colonial Period The United States did not become a world leader in trade until the Great Depression of the 1930s. However, international trade is as old as the founding of the American Colonies. There is a significant reference to trade in the U.S. Constitution, in Article I, Section 8: "The Congress shall have power to lay and collect taxes, duties, imposts and excises...but all duties, imposts and excises shall be uniform throughout the United States; To regulate commerce with foreign nations, and among the several states, and with the Indian Tribes" (U.S., 1787, 2). As with many nations, the history of American international trade policy is…
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Integrating ASD Into Financial Accounting

Integrating ASD Into Financial Accounting The purpose of this study was to assess the feasibility of integrating the concept of sustainable development generally and ASD more specifically into financial accounting analyzes used by commercial banks in the decision-making process for the extension of business loans. The ultimate objective of this study was the validation of an effective mechanism for linking accountability and corporate responsibility for the protection of the physical environment through typical business processes involving commercial bank business lending that are both routine and crucial to the productive functioning of corporations. Sustainable development is defined as meeting the needs of the present, without compromising the ability of future generations…
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Immigration Impact on U.S. Culture

Immigration Impact on U.S. Culture Contemporary waves of immigration have an enormous impact on American culture, from politics to the arts. Perhaps more than any other nation, the history of America is immigration. The Census bureau estimated that between 1990 and 2000, the nation’s population would grow from 249 million to 275 million with about 35 percent of the gain due to immigration (Samuelson 1). These numbers make many individuals begin to think protectionism when it comes to immigration numbers, because fears arise over whether or not American can accommodate or assimilate such enormous numbers of immigrants. However, these fears make many forget that America’s rich history of immigration demonstrates…
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Foreign Currencies in Thailand & Hedging

Foreign Currencies in Thailand & Hedging This literature review is in support of a study of the factors related to the forward premium on foreign currencies in Thailand. Literature is reviewed in this chapter in relation to the factors that affect the level of a forward premium on currencies, and in relation to the various approaches employed in the prediction for forward values for currencies. Hedging and the Need to Hedge Forward Currency Exchange Rates Hedging is an action or a series of actions taken by either a buyer or a seller to protect assets against a change in prices (Rees, 1991, p. 210). In practical applications, the concept of…
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Britain’s Credit Crunch

Britain's Credit Crunch Abstract: Many British banks are in crisis. Some have already collapsed. Four of Britain's largest banks are asking the Bank of England to bail them out. The problems these banks face stem from speculative investments. As a result of the losses on these investments, British banks have tightened their lending programs. This has led to a credit crunch, and as a result companies and individuals are finding it difficult to borrow money. This lack of credit availability is hurting the economy. The question is how best to work through this problem. British legislators are also considering the role the government can and should play in addressing this…
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