Loan Capital Formation Strategy of Companies I.D. Anikina*

Size: px
Start display at page:

Download "Loan Capital Formation Strategy of Companies I.D. Anikina*"

Transcription

1 Abstract Loan Capital Formation Strategy of Companies I.D. Anikina* Defines of principles, goals, objectives, stages and factors of loan capital companies. Analyzed the main methods of forming loan capital companies, their advantages and disadvantages, the technique analyzes the effectiveness of recruitment and use of capital. Keywords Financial strategy, borrowing, credit, debt capital market related loan, the price of capital. Introduction Financial strategy has a significant impact on the efficiency of the companies it acquires special importance subject to the implementation of long-term and costly investment. Under the financial strategy of the company is understood as a system of principles and methods for the formation of long-term management structure of equity and debt. Principles of formation of the financial strategy of the company are as follows. 1. The principle of financial stability and financial flexibility. Developing a financial strategy, the company must analyze its implications for financial stability. Important is to develop a system of evaluation and management of financial stability depending on changes in the amount and sources of funding. Ensuring financial stability involves the development of a system for assessing financial stability of the company, its gradation (strong, medium, weak financial stability) and specification of the financial strategy, depending on the degree of financial stability. 2. The correspondence principle of formation of financial overall corporate strategy and investment strategy. Implies agreement with them (consistency in decision-making), taking into account their interrelationship and interdependence. For example, one of the financial strategies is a strategy of mergers and acquisitions. But this strategy must meet the general and investment strategies of the company, as has an effect on the change in most functional areas of the company. 7

2 *Volgograd University, department "Corporate Finance and Banking", Russia 3. The principle of inclusivity stay Holder companies - natural and legal persons interested in the activities of the company. These include: consumer products and the company's suppliers, employees, competitors, creditors, government (through its representatives). Companies need to consider how the decision on sources of financing and capital structure will affect the presentation stay holders its sustainability and risks, determining their investment and financial decisions regarding the company (decision to invest in the securities of the company, decisions on partnerships, buying the company's products et al.). 4. The principle of the stages of the economic cycle, the life cycle of the industry and the company. At various stages of the life cycle of the company there are various issues that affect the choice of volumes Examples attracts financial resources and their structure. For example, during the birth of the company is difficult to attract significant long-term debt financing or to rise funds to open financial markets, so important in these conditions may be looking for a strategic investor. At the stage of growth of the financial markets in general, the company is more profitable to raise funds from the financial markets in periods of economic downturn become critical internal sources of financing. 5. The principle of the dynamics of a financial strategy that is changing under the influence of appearance of new companies investment objectives and risk (the principle of a risk and profitability of the company). Thus, companies with unsustainable cash flows will experience difficulty in attracting debt financing on "optimal" interest rates, at the same time, companies with stable cash flows can attract a larger volume of loan funding. Companies with large amounts of specific assets will use less leverage than firms with universal asset. Investments in specific assets mean higher risk (illiquidity of these assets, a sharp change in their value in a highly turbulent environment), in order to reduce the company which will reduce financial risks by using as much as possible their own funding sources. Achieving an acceptable risk when choosing a financial strategy makes it necessary to develop a system of financial risk management and investment strategies. 6. The principle of adjustment, according to which the financial strategy of the investor requires constant adjustments according to changes in the external and internal environment of the company. The purpose of the formation of the company's debt capital - improving the performance of the company on the basis of maximizing its value, which is achieved by minimizing the cost of debt financing, the implementation of tax savings. 8

3 Borrowed capital management objectives of the company are: - Providing the necessary financial resources at certain times on the right time to implement the investment strategy of the company; - Increase the company's value based on the optimal ratio of debt to equity, minimizing the costs of attracting financial resources, achieving an acceptable balance between the growth of the financial risk (in terms of growth of debt capital in the structure of liabilities) and the growth of return on equity; - Ensuring the optimum ratio of financial stability and financial flexibility of the company by building a portfolio of leveraged funds (raising funds from alternative sources, in different currencies). Formation of the company's financial strategy is determined by the following factors (see Table). Stages of formation of debt capital: 1. Determination of the capital requirements for the implementation of the investment strategy. 2. Analysis of the potential sources of the borrowed capital specific to the company, the industry, the project; comparison of their benefits and risks. 3. Determination of the volume, timing, terms of attracting financial resources, limited in their use. 4. Optimization of ways to raise funds. 5. Establishment of the partners to attract financial resources. 6. Minimizing the risks of the financial strategy of the company. Financial strategy formation borrowed capital companies implemented various methods to attract debt instruments from which to finance investment strategies are the most important methods of attracting long-term borrowed funds (long-term borrowings, long-term bonds) and leasing. 9

4 Table Formation factors of financial strategy External (macro-economic and sector) factors The development of financial institutions and markets; stage of the economic cycle; specifics and stage in the life cycle of the industry in which the company operates Internal (corporate) factors Specificity and stage in the life cycle of the company; the size of the company and its assets (the value of assets, their liquidity, asset structure, their specificity, the presence and the goodwill of the company); equity capital; the existing capital structure (ratio of debt to equity); equity structure; current and forecasted financial stability and financial flexibility of the company; the company's reputation; accessibility for those companies or other sources FUNDING Factors investment project The required financial resources; the period for which financial resources are involved; the return and risk of the investment project; innovative projects; social and political significance of the project The advantages of using borrowed capital are: increasing return on equity, accelerated development of the company, the use of tax shields, which reduces the cost of capital, lower risk of loss of control over the company; increasing the motivation of managers to work effectively; a simple registration procedure, low cost and short time to attract debt capital compared with its own. At the same time borrowing funds has several disadvantages: the company increased financial risk, so the amount of leverage resources at affordable rates for the company is limited; targeted the majority of extra financial resources limits of available resources and may lead to loss of profits; fundraising takes place at a certain time (the need for capital return). The role of bank lending to finance investment strategies companies in the real sector of the economy is very significant. The active participation of banking companies in the investment processes creates prerequisites Key for accelerated economic growth. Banking companies operate in the investment process 10

5 function of financial and investment intermediary through the transformation of financial capital in the investment resources. For Russian companies, the importance of the participation of companies of credit and banking sector in the implementation of investment strategies is extremely high, due to the underdevelopment of alternative sources of finance (financial markets, financial services companies). The importance of bank lending to the economy indicate forecasts Economic Development of Russia, it is estimated that the level of bank lending to the domestic economy may reach in 2020, 80-85% of GDP (in %), the financing of investments % of GDP (2007 of - 9.4%) [6, p. 22]. However, despite the growth of bank lending to businesses, the value of bank loans in the Russian economy (as a percentage of GDP) does not correspond to global trends (in 2008, 36.3% and %, respectively) [ibid, p. 23]. A significant source of financing for Russian companies are currental own financial resources (41.5% according to 2007, of which 19.9% of the company's profits) and the budget (21.2% in 2007) [9], which indicates a high proportion of non-market financing investment. Loans to enterprises occupy 45% of the banks' assets [5, p. 23], but in the structure of investment financing these sources account for only 9.4%. This is not enough for large-scale development of investment processes in the Russian economy. Estimated A.G. Aganbegyan, for 6% GDP growth needs to double the current rate of investment from 170 to 340 billion USD. And the calculations of the Institute of Economy in Transition indicate the need for investment in fixed assets in the industry just over 1 trillion rubles. [6, p. 26; 4, p. 8]. The share of medium- and long-term loans in their total volume increased (50.9% - by 1 January 2008, 30.3% -on 1 January 2001). However, of these, only 23.6% are loans with a maturity of more than three years, while in the EU 52% of loans are granted for a period of more than five years [6, p. 24]. It should be noted that the US share of bank loans in the structure of financing sources of investment is 40%, in the EU - an average of 42%, in Japan - 65% [5, p. 23]. With limited equity and participation by Russian banking companies in financing investment projects in the real sector of the economy enterprises are resorting to additional sources of credit, such as an increase in imports of capital from abroad. Net inflow of capital and enterprises, and banks grew at a significant pace and in 2007 was US $ 48.5 billion. [6, p. 26], which increases the attractiveness of investments. The crisis of led to the growth requirements of foreign banks to their Russian counterparts on early redemption of debt and tightening the issuance of new loans. This led to a sharp (in the first half of more than twice per annum) [ibid, p. 27] reduce borrowing by Russian banks. Such thus and this source of funding is currently companies to use difficult. One of the important benefits of bank lending, in addition to the above, is the confidential nature of the transaction, the main parameters of which are known to a limited number of persons; the use of a personal relationship with the creditors for concessional lending, which is impossible for market financing investment. 11

6 At the same time, attracting long-term bank loans, companies face a number of constraints: the purpose of the loan; the need to provide support; restrictions on certain types of transactions, regulatory compliance of financial ratios, limitations on the level of indebtedness, profitability and guarantees to third parties; limited use of tax shields under Russian law. Another important source of investment financing - debt instruments of the capital market, the main of which are corporate bonds. In developed countries, a large proportion of the investment is financed through the mechanisms of the financial market. Thus, the issue of securities (stocks and bonds) of the total funding of investments are in the US - 60%, in Germany - 35%, France - 40%, in Russia - 9% [8, p. 45]. Studies show that the share of corporate bond issues in total investment was 27.6% in 2006, but a substantial portion of borrowed funds diverted from the renewal of fixed assets, so the final contribution of corporate emissions for these purposes - 3-4% [2, p. 93]. In developed countries, namely debt market occupies a considerable share in the capital market - up to 6065% of the total market capitalization, while the Russian market of corporate bonds is less than 4% of GDP [ibid]. During the Russian corporate bond market has grown significantly, and by the beginning of 2007, the volume of corporate bonds issued amounted to 47 billion rubles. However, compared with the banks -bank loans, the share of corporate bonds (including Eurobonds) of the total investment in fixed assets the company has negligible (1.25% in 2006) [2, p. 95]. The global financial crisis has had a negative impact on the Russian bond market, other than the collapse of the market cannot be called the events in September 2008, when the MICEX Stock Exchange suspended trading simultaneously on several issuers. Despite the high yield market - 25% or more [11, p. 13], market volumes are negligible, investors fear the borrower defaults, so any extra high yield evidence about the risk of default now, not talking about the attractiveness of investments. Most analysts believe that as long as the bond market is closed for companies III- IV levels [11, p. 13]. In the near future restoration of the bond market will largely be determined by the Company's ability to fulfill current obligations to repay and put options. With mass default and increase investor confidence in the market as a mechanism for raising funds may be closed for many borrowers. According to estimates of the Civil Code "Region", the total amount due in October - December 2008 was 38.9 billion rubles., As part of early redemption, investors may submit commitments worth more than 207 billion rubles., Which is about 13% of the corporate bonds [ibid, p. 13]. In this case, in September 2008, the company has defaulted: Siberian company Alpi during the offer and presented for redemption of bonds in the amount of 1.44 billion rubles able to repay only 495,140,000 rubles. [12. 10]; "Saturn" could not in time to pay the coupon income in the amount of million rubles. Company "Radionet" not fulfilled its obligations under the repayment of the bond loan of 1 billion rubles. [3. 12]. According to the statistics of the analytical department of the investment group "VIC", about 20% of issuers have defaulted or are in a state of bankruptcy [4, p. 57]. Reducing the volume and 12

7 liquidity of the bond market and has a negative impact on the ability of all companies, is prodepending on their financial condition, the use of this source for the growth of financial resources. The disadvantages of attracting bonds are: the inability to use them to cover the losses of the company that makes the attraction of such financial instruments limited to the financial crisis; need to comply with standards FFMS on mandatory disclosure of information; the presence of an emission tax; a significant amount of documentation (prospectus, contract underwriting agreements with the Paying Agency, the depositary); significant risks for the lenders and the complexity of their adequate assessment; limited use of tax shields. At the same time, the possibility of a significant raising fund at low interest rates, market prices, the lack of strict purpose make this a very attractive source of financing for companies. Method of attracting associated loan is a type of attraction of trade credit issued for a specific supply contract. Such a tool can be used to finance the supply of imported equipment; the cost of credit is from 6 to 12%, the term of the loan funds - up to 10 years, does not require collateral. This type of lending is used [7, p. 46]: - For delivery of any production equipment to upgrade facilities and transport (loan term - up to five years); - When importing any goods for resale, raw materials for production needs (loan term - one to two years); - To create the industrial infrastructure of the enterprise, for example, the construction of warehouse and office space, of commercial operation (financing term - up to ten years); - To create the transport infrastructure: roads, infrastructure (railway stations, airports, etc.) (Term funding - up to 20 years). Using a linked credit, the company involves long and cheap financial resources sy without providing collateral (a pledge can be imported merchandise or equipment), minimizes the risks of trading. The main disadvantage of this method is the limited types of investment resources that can be purchased under the terms of the associated credit, and a narrow circle of their suppliers. In underdeveloped banking system and capital markets an important method of financing investment strategies is leasing companies. The basic form of leasing in the implementation of investment strategies -Financial leasing, which is a rent fixed assets for a period not exceeding the period of their depreciation and subsequent transfer of ownership of fixed assets leased to the tenant. The main advantages of leasing related to the possibility of tax shields on the total payments; using the method of accelerated depreciation in calculating income for tax purposes; rapid adoption of the financing decision. The main drawbacks - high down payments; limitations of the assets for which it is possible to use leasing. During the financial crisis, this source of financing for companies increases their attractiveness, some leasing companies are increasing business volumes. For example, "Eigor1ap" in the first half of 2008 showed a growth of 64.4% 13

8 activity. The number of contracts concluded during this period was 9,500, compared with 6,700 in the first half of "SAYASABE Leasing" in the first half of 2008 increased profit by 1.58 times compared to the same period in 2007, which amounted to 96 million rubles. In this case, the company's portfolio has doubled and reached 6.5 billion rubles. [10. 22]. An important indicator of the effectiveness of the use of the company's capital is the return on equity. Katori income (s) and choose the most effective strategies for raising capital, aimed, on the one hand, to reduce the costs of its attraction, and the other - to increase the profit from the use of capital. Thus, the analysis of the main methods of forming loan capital companies showed that the financial crisis has been a sharp increase in the price to attract a variety of extra financial resources. At the same time, the formation of the extra capital the company must take into account not only the price to attract resources, but also parameters such as the amount of available resources; term of the resources; the level of rates to attract resources; time implementation of the method of attracting resources; view rates to attract resources (fixed, floating); currency attracted resources; the need for collateral and its conditions; restrictions lender when providing extra financial resources; repayment terms of attracting financial resources and the possibility of early repayment. The choice of the method of forming the extra capital will be determined by a combination of these parameters, as well as their priority for the company. 14

9 References 1. Aganbegyan, A.G. The role of investment in economic growth / A.G. Aganbegyan // Finance and business N 3. - S Butler A. Resources of the capital market as a source of financing the real economy / A. Dvoretskaya // Problems of Economics S Defaults September // Vanderbilt S Interview with the president of the investment group "VIC" V. Lukyanov // Finance S The concept of development of the financial market in Russia up to 2020 // A joint project of the rating agency "Expert RA" and the Association of Regional Banks of Russia. - Access http: // www. raexpert. ru / strategy / conception /. 6. Krolivetskaya, V.E. Banks in the investment financing of the real sector of the Russian economy / VE Krolivetskaya, EV Tikhomirov // Money and Credit S Prishedko, I. Imports / I. Prishedko // Vanderbilt C Rossokhin, V.V. Problems of efficient use of the Russian stock market to raise funds in the real economy / VV Rossokhin // Finances and Credit S Rosstat. - Mode of access: 10. Growth in the crisis // Vanderbilt S Tereshkova, N. Bond debt: who is waiting for the calendar defaults? / N. Tereshkova // Vanderbilt S Tereshkova, N. Where leading long Siberian retailer / N. Tereshkova // Vanderbilt p

11.437 Financing Community Economic Development Class 6: Fixed Asset Financing

11.437 Financing Community Economic Development Class 6: Fixed Asset Financing 11.437 Financing Community Economic Development Class 6: Fixed Asset Financing I. Purpose of asset financing Fixed asset financing refers to the financing for real estate and equipment needs of a business.

More information

The Macroeconomic Situation and Monetary Policy in Russia. Ladies and Gentlemen,

The Macroeconomic Situation and Monetary Policy in Russia. Ladies and Gentlemen, The Money and Banking Conference Monetary Policy under Uncertainty Dr. Sergey Ignatiev Chairman of the Bank of Russia (The 4 th of June 2007, Central Bank of Argentina, Buenos Aires) The Macroeconomic

More information

Debt Policy. I. Purpose of the Debt Policy

Debt Policy. I. Purpose of the Debt Policy Debt Policy I. Purpose of the Debt Policy In support of its mission, (University) maintains a long term strategic plan. The strategic plan establishes University wide priorities as well as divisional programmatic

More information

Corporate Credit Analysis. Arnold Ziegel Mountain Mentors Associates

Corporate Credit Analysis. Arnold Ziegel Mountain Mentors Associates Corporate Credit Analysis Arnold Ziegel Mountain Mentors Associates I. Introduction The Goals and Nature of Credit Analysis II. Capital Structure and the Suppliers of Capital January, 2008 2008 Arnold

More information

TERHAD. Training to Labuan Offshore Entities on Compilation of International Investment Position (IIP) Report

TERHAD. Training to Labuan Offshore Entities on Compilation of International Investment Position (IIP) Report TERHAD Training to Labuan Offshore Entities on Compilation of International Investment (IIP) Report September 2012 TERHAD 1. Equity Capital: A/L Definition Form DIa Exposures with Affiliated Enterprises

More information

Athens University of Economics and Business

Athens University of Economics and Business Athens University of Economics and Business MSc in International Shipping, Finance and Management Corporate Finance George Leledakis An Overview of Corporate Financing Topics Covered Corporate Structure

More information

SBERBANK GROUP S IFRS RESULTS. March 2015

SBERBANK GROUP S IFRS RESULTS. March 2015 SBERBANK GROUP S IFRS RESULTS 2014 March 2015 SUMMARY OF PERFORMANCE FOR 2014 STATEMENT OF PROFIT OR LOSS Net profit reached RUB 290.3bn (or RUB 13.45 per ordinary share), compared to RUB 362.0bn (or RUB

More information

Reading the balance of payments accounts

Reading the balance of payments accounts Reading the balance of payments accounts The balance of payments refers to both: All the various payments between a country and the rest of the world The particular system of accounting we use to keep

More information

Sberbank Group s IFRS Results for 6 Months 2013. August 2013

Sberbank Group s IFRS Results for 6 Months 2013. August 2013 Sberbank Group s IFRS Results for 6 Months 2013 August 2013 Summary of 6 Months 2013 performance: Income Statement Net profit reached RUB 174.5 bn (or RUB 7.95 per ordinary share), a 0.5% decrease on RUB

More information

STATEMENT OF CASH FLOWS AND WORKING CAPITAL ANALYSIS

STATEMENT OF CASH FLOWS AND WORKING CAPITAL ANALYSIS C H A P T E R 1 0 STATEMENT OF CASH FLOWS AND WORKING CAPITAL ANALYSIS I N T R O D U C T I O N Historically, profit-oriented businesses have used the accrual basis of accounting in which the income statement,

More information

M. Com (1st Semester) Examination, 2013 Paper Code: AS-2368. * (Prepared by: Harish Khandelwal, Assistant Professor, Department of Commerce, GGV)

M. Com (1st Semester) Examination, 2013 Paper Code: AS-2368. * (Prepared by: Harish Khandelwal, Assistant Professor, Department of Commerce, GGV) Model Answer/suggested solution Business Finance M. Com (1st Semester) Examination, 2013 Paper Code: AS-2368 * (Prepared by: Harish Khandelwal, Assistant Professor, Department of Commerce, GGV) Note: These

More information

Specifics of national debt management and its consequences for the Ukrainian economy

Specifics of national debt management and its consequences for the Ukrainian economy Anatoliy Yepifanov (Ukraine), Vyacheslav Plastun (Ukraine) Specifics of national debt management and its consequences for the Ukrainian economy Abstract This article is about the specifics of the national

More information

Financing DESCOs A framework

Financing DESCOs A framework Financing DESCOs A framework A framework discussion about financing working capital for distributed energy services companies Chris Aidun and Dirk Muench March 2015 This paper looks at the growing need

More information

Industrial & Infrastructure Fund Investment Corporation (Tokyo Stock Exchange Company Code: 3249) News Release February 17, 2009

Industrial & Infrastructure Fund Investment Corporation (Tokyo Stock Exchange Company Code: 3249) News Release February 17, 2009 Industrial & Infrastructure Fund Investment Corporation (Tokyo Stock Exchange Company Code: 3249) News Release February 17, 2009 First Issue of Unsecured Subordinated Corporate Bonds Industrial & Infrastructure

More information

RBC Money Market Funds Prospectus

RBC Money Market Funds Prospectus RBC Money Market Funds Prospectus November 25, 2015 Prime Money Market Fund RBC Institutional Class 1: RBC Institutional Class 2: RBC Select Class: RBC Reserve Class: RBC Investor Class: TPNXX TKIXX TKSXX

More information

So You Want to Borrow Money to Start a Business?

So You Want to Borrow Money to Start a Business? So You Want to Borrow Money to Start a Business? M any small business owners cannot understand why a lending institution would refuse to lend them money. Others have no trouble getting money, but they

More information

Web. Chapter FINANCIAL INSTITUTIONS AND MARKETS

Web. Chapter FINANCIAL INSTITUTIONS AND MARKETS FINANCIAL INSTITUTIONS AND MARKETS T Chapter Summary Chapter Web he Web Chapter provides an overview of the various financial institutions and markets that serve managers of firms and investors who invest

More information

1. Planning - Establishing organizational goals and deciding how to accomplish them

1. Planning - Establishing organizational goals and deciding how to accomplish them 1 : Understanding the Management Process Basic Management Functions 1. Planning - Establishing organizational goals and deciding how to accomplish them SWOT analysis - The identification and evaluation

More information

DFA INVESTMENT DIMENSIONS GROUP INC.

DFA INVESTMENT DIMENSIONS GROUP INC. PROSPECTUS February 28, 2015 Please carefully read the important information it contains before investing. DFA INVESTMENT DIMENSIONS GROUP INC. DFA ONE-YEAR FIXED INCOME PORTFOLIO Ticker: DFIHX DFA TWO-YEAR

More information

Business Studies - Financial Planning and Management Study Notes. Financial Planning and Management Study Notes:

Business Studies - Financial Planning and Management Study Notes. Financial Planning and Management Study Notes: Business Studies - Financial Planning and Management Study Notes Financial Planning and Management Study Notes: The Role of Financial Planning: The strategic role of financial management: Organisational

More information

Importance of Credit Rating

Importance of Credit Rating Importance of Credit Rating A credit rating estimates ability to repay debt. A credit rating is a formal assessment of a corporation, autonomous governments, individuals, conglomerates or even a country.

More information

2.5 Monetary policy: Interest rates

2.5 Monetary policy: Interest rates 2.5 Monetary policy: Interest rates Learning Outcomes Describe the role of central banks as regulators of commercial banks and bankers to governments. Explain that central banks are usually made responsible

More information

Reporting and Interpreting Liabilities Irwin/McGraw-Hill

Reporting and Interpreting Liabilities Irwin/McGraw-Hill Chapter 9 Reporting and Interpreting Liabilities Business Background The acquisition of assets is financed from two sources: Debt - funds from creditors Equity - funds from owners Business Background The

More information

Selecting sources of finance for business

Selecting sources of finance for business Selecting sources of finance for business by Steve Jay 08 Sep 2003 This article considers the practical issues facing a business when selecting appropriate sources of finance. It does not consider the

More information

Introduction to Money & Banking Lecture notes 2010 Matti Estola

Introduction to Money & Banking Lecture notes 2010 Matti Estola Introduction to Money & Banking Lecture notes 2010 Matti Estola Literature Henderson & Poole: Principles of Economics, Mishkin: The Economics of Money, Banking, and Financial Markets, Extra material given

More information

BPE_MAC1 Macroeconomics 1 Spring Semester 2011

BPE_MAC1 Macroeconomics 1 Spring Semester 2011 Masaryk University - Brno Department of Economics Faculty of Economics and Administration BPE_MAC1 Macroeconomics 1 Spring Semester 2011 Tutorial Session 4-18.03.2011, 11:05-11:50 a.m. Matching a. financial

More information

I N F O R M A T I O N. Provided to Small Clients. The Broker-Dealer Company TESLA CAPITAL AD BEOGRAD

I N F O R M A T I O N. Provided to Small Clients. The Broker-Dealer Company TESLA CAPITAL AD BEOGRAD I N F O R M A T I O N Provided to Small Clients By The Broker-Dealer Company TESLA CAPITAL AD BEOGRAD Pursuant to Article 160 of the Law on Capital Market ( Official Gazette of the Republic of Serbia,

More information

BORROWING AND DEBT MANAGEMENT GUIDELINES OF THE GOVERNMENT OF THE REPUBLIC OF LITHUANIA FOR 2015 2017 CHAPTER I GENERAL PROVISIONS

BORROWING AND DEBT MANAGEMENT GUIDELINES OF THE GOVERNMENT OF THE REPUBLIC OF LITHUANIA FOR 2015 2017 CHAPTER I GENERAL PROVISIONS APPROVED BY Government of the Republic of Lithuania Resolution No 1437 of 15 December 2014 BORROWING AND DEBT MANAGEMENT GUIDELINES OF THE GOVERNMENT OF THE REPUBLIC OF LITHUANIA FOR 2015 2017 CHAPTER

More information

Liquidity and Funding Resources

Liquidity and Funding Resources 112 Allianz Group Annual Report Liquidity and Funding Resources Organization The liquidity management of the Allianz Group is based on policies and guidelines approved by the Board of Management of Allianz

More information

United States of America. Presentation of financial resources available to US investors in Afghanistan; Financial Tools

United States of America. Presentation of financial resources available to US investors in Afghanistan; Financial Tools United States of America Presentation of financial resources available to US investors in Afghanistan; Financial Tools Kabul, February 2007 Research categories for all countries Finance Categories 1. Equity

More information

How Lending Decisions Are Made

How Lending Decisions Are Made How Lending Decisions Are Made Every lending institution has a set of credit standards or guidelines that are used to analyze and approve loans. At Northwest Farm Credit Services, these guidelines ensure

More information

Long Term Business Financing Strategy For A Pakistan Business. Byco Petroleum Pakistan Limited

Long Term Business Financing Strategy For A Pakistan Business. Byco Petroleum Pakistan Limited Long Term Business Financing Strategy For A Pakistan Business Byco Petroleum Pakistan Limited Contents Why We Need Financing Strategy 3 How Financing Strategies are driven? 4 Financing Prerequisite for

More information

Non-traded financial contracts

Non-traded financial contracts 11-1 Introduction Financial contracts are made between lenders and borrowers Non-traded financial contracts are tailor-made to fit the characteristics of the borrower In business financing, the differences

More information

Ipx!up!hfu!uif Dsfeju!zpv!Eftfswf

Ipx!up!hfu!uif Dsfeju!zpv!Eftfswf Ipx!up!hfu!uif Dsfeju!zpv!Eftfswf Credit is the lifeblood of South Louisiana business, especially for the smaller firm. It helps the small business owner get started, obtain equipment, build inventory,

More information

EDICT OF THE PRESIDENT OF THE REPUBLIC OF BELARUS. August 29, 2008 No. 460 Minsk

EDICT OF THE PRESIDENT OF THE REPUBLIC OF BELARUS. August 29, 2008 No. 460 Minsk EDICT OF THE PRESIDENT OF THE REPUBLIC OF BELARUS August 29, 2008 No. 460 Minsk On Approval of the Republic of Belarus Monetary Policy Guidelines for 2009 1. To approve the Republic of Belarus Monetary

More information

The International Certificate in Banking Risk and Regulation (ICBRR)

The International Certificate in Banking Risk and Regulation (ICBRR) The International Certificate in Banking Risk and Regulation (ICBRR) The ICBRR fosters financial risk awareness through thought leadership. To develop best practices in financial Risk Management, the authors

More information

Investment Banking. Nature of operations

Investment Banking. Nature of operations Investment Banking Nature of operations Raiffeisenbank s investment banking operations are directed towards local bond issuances and placement, loan syndications arrangement, and the provision of consulting

More information

GOLDMAN SACHS VARIABLE INSURANCE TRUST

GOLDMAN SACHS VARIABLE INSURANCE TRUST GOLDMAN SACHS VARIABLE INSURANCE TRUST Institutional and Service Shares of the Goldman Sachs Money Market Fund (the Fund ) Supplement dated July 29, 2015 to the Prospectuses and Summary Prospectuses, each

More information

Conceptual Framework for Financial Reporting

Conceptual Framework for Financial Reporting Conceptual Framework for Financial Reporting Chapter 1: The Objective of Financial Reporting INTRODUCTION OB1. The first chapter of the conceptual framework establishes the objective of general purpose

More information

High-yield bonds: an introduction to material covenants and terms

High-yield bonds: an introduction to material covenants and terms Key points The European high-yield bond market has seen significant issuances over the past two years (both in terms of number of issuances and volumes) and has seen numerous debut issuers. A driver of

More information

[ 2 ] Basic Securitization Structure. [ 1 ] Securitization and Monetization. Ⅰ Basic Structure of Real Estate Securitization. Structured finance

[ 2 ] Basic Securitization Structure. [ 1 ] Securitization and Monetization. Ⅰ Basic Structure of Real Estate Securitization. Structured finance Ⅰ Basic Structure of Real Estate Securitization [ 1 ] Securitization and Monetization Asset securitization is where a financial institution or other business that owns assets places those assets in a structure

More information

2. Financial management:

2. Financial management: 2. Financial management: Meaning, scope and role, a brief study of functional areas of financial management. Introduction to various FM tools: ratio analysis, fund flow statement, cash flow statement.

More information

Capital Market Glossary of Terms Apple Capital Group, Inc

Capital Market Glossary of Terms Apple Capital Group, Inc GLOSSARY OF TERMS -A- Accredited Investor The SEC designation for an individual or entity meeting any of the following criteria: Any director, executive officer, or general partner of the issuer of the

More information

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. ECON 4110: Sample Exam Name MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Economists define risk as A) the difference between the return on common

More information

Catalyst/Princeton Floating Rate Income Fund Class A: CFRAX Class C: CFRCX Class I: CFRIX SUMMARY PROSPECTUS NOVEMBER 1, 2015

Catalyst/Princeton Floating Rate Income Fund Class A: CFRAX Class C: CFRCX Class I: CFRIX SUMMARY PROSPECTUS NOVEMBER 1, 2015 Catalyst/Princeton Floating Rate Income Fund Class A: CFRAX Class C: CFRCX Class I: CFRIX SUMMARY PROSPECTUS NOVEMBER 1, 2015 Before you invest, you may want to review the Fund s complete prospectus, which

More information

Development of mortgage lending in Russia

Development of mortgage lending in Russia Development of mortgage lending in Russia Development of Russian mortgage market: 2007-2012 Mortgage origination, bln. (RUB/$) Mortgage share of residential market turnover 1000 900 800 700 600 500 400

More information

SPDR S&P 400 Mid Cap Value ETF

SPDR S&P 400 Mid Cap Value ETF SPDR S&P 400 Mid Cap Value ETF Summary Prospectus-October 31, 2015 Before you invest in the SPDR S&P 400 Mid Cap Value ETF (the Fund ), you may want to review the Fund's prospectus and statement of additional

More information

CIMA F3 Course Notes. Chapter 3. Short term finance

CIMA F3 Course Notes. Chapter 3. Short term finance CIMA F3 Course Notes c Chapter 3 Short term finance Personal use only - not licensed for use on courses 31 1. Conservative, Aggressive and Matching strategies There are three over-riding approaches to

More information

How credit analysts view and use the financial statements

How credit analysts view and use the financial statements How credit analysts view and use the financial statements Introduction Traditionally it is viewed that equity investment is high risk and bond investment low risk. Bondholders look at companies for creditworthiness,

More information

Investing in unlisted property schemes?

Investing in unlisted property schemes? Investing in unlisted property schemes? Independent guide for investors about unlisted property schemes This guide is for you, whether you re an experienced investor or just starting out. Key tips from

More information

Securitisation after the credit crunch Is it right for your business?

Securitisation after the credit crunch Is it right for your business? www.pwc.com/securitisation Securitisation after the credit crunch Is it right for your business? Securitisation undoubtedly received a lot of adverse press during the credit crisis. In this publication

More information

The Law of First Impressions A Practical Guide to Mortgage Applicants

The Law of First Impressions A Practical Guide to Mortgage Applicants The Law of First Impressions A Practical Guide to Mortgage Applicants Increased Importance of Borrower Financial Statements For Commercial Real Estate Financing Robert T. Gibney Real estate investors prepare

More information

Residential Mortgage Finance and Housing Markets in Russia February 9, 2004. Britt Gwinner The World Bank

Residential Mortgage Finance and Housing Markets in Russia February 9, 2004. Britt Gwinner The World Bank Residential Mortgage Finance and Housing Markets in Russia February 9, 2004 Britt Gwinner The World Bank 1 Overview of Presentation Two Sections: 1. Residential Mortgage Finance Internationally 2. Mortgage

More information

Centrale Bank van Curaçao en Sint Maarten. Manual Coordinated Portfolio Investment Survey CPIS. Prepared by: Project group CPIS

Centrale Bank van Curaçao en Sint Maarten. Manual Coordinated Portfolio Investment Survey CPIS. Prepared by: Project group CPIS Centrale Bank van Curaçao en Sint Maarten Manual Coordinated Portfolio Investment Survey CPIS Prepared by: Project group CPIS Augustus 1, 2015 Contents Introduction 3 General reporting and instruction

More information

SAMA GENERAL DEPARTMENT OF FINANCE COMPANIES CONTROL. Prudential Returns Handbook (Finance Companies)

SAMA GENERAL DEPARTMENT OF FINANCE COMPANIES CONTROL. Prudential Returns Handbook (Finance Companies) SAMA GENERAL DEPARTMENT OF FINANCE COMPANIES CONTROL Prudential Returns Handbook (Finance Companies) 1. Introduction Submission schedule All licensed finance companies in Saudi Arabia are required to submit

More information

Tax planning may have contributed to high indebtedness among Swedish companies

Tax planning may have contributed to high indebtedness among Swedish companies Tax planning may have contributed to high indebtedness among Swedish companies Gunnar Blomberg, Jyry Hokkanen and Sofia Kåhre The European Commission has identified in a survey of potential imbalances

More information

PUBLIC DEBT MANAGEMENT OFFICE: MAIN FUNCTIONS AND REQUIRED SKILLS

PUBLIC DEBT MANAGEMENT OFFICE: MAIN FUNCTIONS AND REQUIRED SKILLS PUBLIC DEBT MANAGEMENT OFFICE: MAIN FUNCTIONS AND REQUIRED SKILLS The functions and required skills of the three main divisions of a Debt Management Office (DMO) - namely, the Front, Middle and Back Offices-

More information

FREE MARKET U.S. EQUITY FUND FREE MARKET INTERNATIONAL EQUITY FUND FREE MARKET FIXED INCOME FUND of THE RBB FUND, INC. PROSPECTUS.

FREE MARKET U.S. EQUITY FUND FREE MARKET INTERNATIONAL EQUITY FUND FREE MARKET FIXED INCOME FUND of THE RBB FUND, INC. PROSPECTUS. FREE MARKET U.S. EQUITY FUND FREE MARKET INTERNATIONAL EQUITY FUND FREE MARKET FIXED INCOME FUND of THE RBB FUND, INC. PROSPECTUS December 31, 2014 Investment Adviser: MATSON MONEY, INC. 5955 Deerfield

More information

Understanding Financial Management: A Practical Guide Guideline Answers to the Concept Check Questions

Understanding Financial Management: A Practical Guide Guideline Answers to the Concept Check Questions Understanding Financial Management: A Practical Guide Guideline Answers to the Concept Check Questions Chapter 3 Interpreting Financial Ratios Concept Check 3.1 1. What are the different motivations that

More information

Important Information about Closed-End Funds and Unit Investment Trusts

Important Information about Closed-End Funds and Unit Investment Trusts Robert W. Baird & Co. Incorporated Important Information about Closed-End Funds and Unit Investment Trusts Baird has prepared this document to help you understand the characteristics and risks associated

More information

GUIDE TO THE SURVEY FINANCIAL BALANCE STATISTICS

GUIDE TO THE SURVEY FINANCIAL BALANCE STATISTICS 1(16) GUIDE TO THE SURVEY FINANCIAL BALANCE STATISTICS 1 GENERAL INFORMATION... 3 2 DEFINITION OF DATA... 3 2.1 Positions... 3 2.2... 3 2.3... 4 3 DEFINITION OF VARIABLES... 4 3.1 Financial assets... 4

More information

René Garcia Professor of finance

René Garcia Professor of finance Liquidity Risk: What is it? How to Measure it? René Garcia Professor of finance EDHEC Business School, CIRANO Cirano, Montreal, January 7, 2009 The financial and economic environment We are living through

More information

NOTE ON LOAN CAPITAL MARKETS

NOTE ON LOAN CAPITAL MARKETS The structure and use of loan products Most businesses use one or more loan products. A company may have a syndicated loan, backstop, line of credit, standby letter of credit, bridge loan, mortgage, or

More information

Corporate financing in Europe and the role of banks

Corporate financing in Europe and the role of banks Corporate financing in Europe and the role of banks Hitotsubashi University 24 June 2015 Matthew Grayson, General Manager, Global Institutional Banking Department, SMBC The role of banks in the economy

More information

Topic Overview. Strategies and Management E4: Resources Management Sources of Financing

Topic Overview. Strategies and Management E4: Resources Management Sources of Financing Resources for the TEKLA curriculum at Junior Secondary Topic 7 Sources of Financing Strategies and Management Extension Learning Element Module E4 Resources Management Topic Level Duration Topic Overview

More information

The Methodology presented is a short public version.

The Methodology presented is a short public version. April 2015, Frankfurt am Main. METHODOLOGY FOR ASSIGNING CORPORATE CREDIT RATINGS (NON- FINANCIAL NON-HOLDING COMPANIES) SHORT VERSION 1. General definitions The Methodology presented is a short public

More information

Use this section to learn more about business loans and specific financial products that might be right for your company.

Use this section to learn more about business loans and specific financial products that might be right for your company. Types of Financing Use this section to learn more about business loans and specific financial products that might be right for your company. Revolving Line Of Credit Revolving lines of credit are the most

More information

BALANCE OF PAYMENTS AND FOREIGN DEBT

BALANCE OF PAYMENTS AND FOREIGN DEBT BALANCE OF PAYMENTS AND FOREIGN DEBT V 1. BALANCE OF PAYMENTS In 1997, the external current account deficit was 8.1 billion krónur, corresponding to 1. percent of GDP. It declined from 8.9 b.kr., or 1.8

More information

Financial Management

Financial Management Different forms business organization Financial Management Sole proprietorship Partnership Cooperative society Company Private limited Vs Public limited company Private co min- two and max fifty, Pub Ltd

More information

Product Key Facts. PineBridge Global Funds PineBridge Global Emerging Markets Bond Fund. 22 December 2014

Product Key Facts. PineBridge Global Funds PineBridge Global Emerging Markets Bond Fund. 22 December 2014 Issuer: PineBridge Investments Ireland Limited Product Key Facts PineBridge Global Funds PineBridge Global Emerging Markets Bond Fund 22 December 2014 This statement provides you with key information about

More information

Course Syllabus For Banking and Financial Management Department

Course Syllabus For Banking and Financial Management Department For Banking and Financial Management Department School Year First Year First year Second year Third year Fifth year Fifth year Fifth year Fifth year Name of course Financial Accounting principles Intermediate

More information

SUMMARY PROSPECTUS. TCW High Yield Bond Fund FEBRUARY 29 I SHARE: TGHYX N SHARE: TGHNX

SUMMARY PROSPECTUS. TCW High Yield Bond Fund FEBRUARY 29 I SHARE: TGHYX N SHARE: TGHNX TCW High Yield Bond Fund I SHARE: TGHYX N SHARE: TGHNX 20 6 FEBRUARY 29 SUMMARY PROSPECTUS Before you invest, you may want to review the Fund s Prospectus which contain more information about the Fund

More information

Summary PIONEER PUBLIC PROPERTIES AS

Summary PIONEER PUBLIC PROPERTIES AS Summary PIONEER PUBLIC PROPERTIES AS ISIN: NO 0010767619 Listing on Oslo Børs 29.09.2016 Sole Manager: Summaries are made up of disclosure requirements known as Elements. These elements are numbered in

More information

Ind AS 32 and Ind AS 109 - Financial Instruments Classification, recognition and measurement. June 2015

Ind AS 32 and Ind AS 109 - Financial Instruments Classification, recognition and measurement. June 2015 Ind AS 32 and Ind AS 109 - Financial Instruments Classification, recognition and measurement June 2015 Contents Executive summary Standards dealing with financial instruments under Ind AS Financial instruments

More information

9. Short-Term Liquidity Analysis. Operating Cash Conversion Cycle

9. Short-Term Liquidity Analysis. Operating Cash Conversion Cycle 9. Short-Term Liquidity Analysis. Operating Cash Conversion Cycle 9.1 Current Assets and 9.1.1 Cash A firm should maintain as little cash as possible, because cash is a nonproductive asset. It earns no

More information

EVLI SWEDEN EQUITY INDEX FUND

EVLI SWEDEN EQUITY INDEX FUND EVLI SWEDEN EQUITY INDEX FUND FUND-SPECIFIC RULES The fund rules consist of fund-specific rules and common rules based on the UCITS IV Directive. 1 The Fund The name of the mutual fund will be Sijoitusrahasto

More information

Daily Income Fund Retail Class Shares ( Retail Shares )

Daily Income Fund Retail Class Shares ( Retail Shares ) Daily Income Fund Retail Class Shares ( Retail Shares ) Money Market Portfolio Ticker Symbol: DRTXX U.S. Treasury Portfolio No Ticker Symbol U.S. Government Portfolio Ticker Symbol: DREXX Municipal Portfolio

More information

Ladies and Gentlemen!

Ladies and Gentlemen! Ladies and Gentlemen! Prospect Investment Company has been in operation on the Russian stock market since its origin. As far as the securities market in Russia is concerned, this period is equivalent to

More information

NET WORTH AND OTHER EQUITY ACCOUNTS

NET WORTH AND OTHER EQUITY ACCOUNTS Chapter 16 NET WORTH AND OTHER EQUITY ACCOUNTS TABLE OF CONTENTS NET WORTH AND OTHER EQUITY ACCOUNTS... 16. 1 Examination Objectives... 16-1 Associated Risks... 16. 1 Overview....16.2 Secondary Capital

More information

2014 Survey of Credit Underwriting Practices

2014 Survey of Credit Underwriting Practices 2014 Survey of Credit Underwriting Practices Office of the Comptroller of the Currency Washington, D.C. December 2014 Contents Introduction... 1 Part I: Overall Results... 3 Primary Findings... 3 Commentary

More information

Ethiopian Institute of Financial Studies (EIFS) PROJECT FINANCE

Ethiopian Institute of Financial Studies (EIFS) PROJECT FINANCE PROJECT FINANCE With the growth in the economy and the revival in the industrial sector coupled with the increasing role of private players in the field of infrastructure, more and more Ethiopian banks

More information

Interim announcement as of 31 December 2008. IKB: interim announcement as of 31 December 2008

Interim announcement as of 31 December 2008. IKB: interim announcement as of 31 December 2008 IKB: interim announcement as of With the end of 26 February 2009, the IKB Deutsche Industriebank AG share left the Prime Standard of the Frankfurt Stock Exchange and was then listed in the General Standard.

More information

1. A capital market brings together those who want to invest money and those who

1. A capital market brings together those who want to invest money and those who Chapter 12 The Global Capital Market True / False Questions 1. A capital market brings together those who want to invest money and those who want to borrow money. True False 2. Market makers are companies

More information

DESCRIPTION OF FINANCIAL INSTRUMENTS AND INVESTMENT RISKS

DESCRIPTION OF FINANCIAL INSTRUMENTS AND INVESTMENT RISKS DESCRIPTION OF FINANCIAL INSTRUMENTS AND INVESTMENT RISKS A. General The services offered by Prochoice Stockbrokers cover a wide range of Financial Instruments. Every type of financial instrument carries

More information

New Issuer: China Merchants Land Limited

New Issuer: China Merchants Land Limited New Issuer: China Merchants Land Limited China Merchants Land has picked Bank of American Merrill Lynch, DBS, Industrial and Commercial Bank of China as joint global co-ordinators, joint lead managers

More information

Securitisation after the credit crunch Is it right for your business?

Securitisation after the credit crunch Is it right for your business? www.pwc.com/securitisation Securitisation after the credit crunch Is it right for your business? Securitisation undoubtedly received a lot of adverse press during the credit crisis. In this publication

More information

The Business Credit Index

The Business Credit Index The Business Credit Index April 8 Published by the Credit Management Research Centre, Leeds University Business School April 8 1 April 8 THE BUSINESS CREDIT INDEX During the last ten years the Credit Management

More information

Bond Markets in Emerging Asia: Progress, Challenges, and ADB Work Plan to Support Bond Market Development. Asian Development Bank

Bond Markets in Emerging Asia: Progress, Challenges, and ADB Work Plan to Support Bond Market Development. Asian Development Bank Bond Markets in Emerging Asia: Progress, Challenges, and ADB Work Plan to Support Bond Market Development Asian Development Bank November 2009 A. Noy Siackhachanh Advisor Office of Regional Economic Integration

More information

Chapter 3. How Securities are Traded

Chapter 3. How Securities are Traded Chapter 3 How Securities are Traded Primary vs. Secondary Security Sales Primary: When firms need to raise capital, they may choose to sell (or float) new securities. These new issues typically are marketed

More information

No. 1 BANK OF RUSSIA FOREIGN EXCHANGE ASSET MANAGEMENT REPORT. Moscow

No. 1 BANK OF RUSSIA FOREIGN EXCHANGE ASSET MANAGEMENT REPORT. Moscow No. 1 2015 FOREIGN EXCHANGE ASSET MANAGEMENT REPORT Moscow Bank of Russia Foreign Exchange Asset Management Report No. 1 (33) 2015 Reference to the Central Bank of the Russian Federation is mandatory in

More information

Understanding Financial Statements. For Your Business

Understanding Financial Statements. For Your Business Understanding Financial Statements For Your Business Disclaimer The information provided is for informational purposes only, does not constitute legal advice or create an attorney-client relationship,

More information

Evaluation on Hybrid Capital of Life Insurance Companies

Evaluation on Hybrid Capital of Life Insurance Companies 06-D-417 September 1, 2006 Evaluation on Hybrid Capital of Life Insurance Companies Japan Credit Rating Agency (JCR) has summarized below the basic perspectives and standards for the evaluation of hybrid

More information

REPUBLIC OF KENYA COUNTY GOVERNMENT OF LAIKIPIA MEDIUM TERM DEBT MANAGEMENT STRATEGY 2013/14-2017/18

REPUBLIC OF KENYA COUNTY GOVERNMENT OF LAIKIPIA MEDIUM TERM DEBT MANAGEMENT STRATEGY 2013/14-2017/18 REPUBLIC OF KENYA COUNTY GOVERNMENT OF LAIKIPIA MEDIUM TERM DEBT MANAGEMENT STRATEGY 2013/14-2017/18 COUNTY EXECUTIVE MEMBER, FINANCE, PLANNING AND COUNTY DEVELOPMENT LAIKIPIA COUNTY February 2014 i EXECUTIVE

More information

18 BUSINESS ACCOUNTING STANDARD FINANCIAL ASSETS AND FINANCIAL LIABILITIES I. GENERAL PROVISIONS

18 BUSINESS ACCOUNTING STANDARD FINANCIAL ASSETS AND FINANCIAL LIABILITIES I. GENERAL PROVISIONS APPROVED by Resolution No. 11 of 27 October 2004 of the Standards Board of the Public Establishment the Institute of Accounting of the Republic of Lithuania 18 BUSINESS ACCOUNTING STANDARD FINANCIAL ASSETS

More information

Accounts payable Money which you owe to an individual or business for goods or services that have been received but not yet paid for.

Accounts payable Money which you owe to an individual or business for goods or services that have been received but not yet paid for. A Account A record of a business transaction. A contract arrangement, written or unwritten, to purchase and take delivery with payment to be made later as arranged. Accounts payable Money which you owe

More information

Research. What Impact Will Ballooning Government Debt Levels Have on Government Bond Yields?

Research. What Impact Will Ballooning Government Debt Levels Have on Government Bond Yields? Research What Impact Will Ballooning Government Debt Levels Have on Government Bond Yields? The global economy appears to be on the road to recovery and the risk of a double dip recession is receding.

More information

Chapter 14. Understanding Financial Contracts. Learning Objectives. Introduction

Chapter 14. Understanding Financial Contracts. Learning Objectives. Introduction Chapter 14 Understanding Financial Contracts Learning Objectives Differentiate among the different mechanisms of external financing of firms Explain why mechanisms of external financing depend upon firm

More information

DEBT MANAGEMENT OFFICE NIGERIA

DEBT MANAGEMENT OFFICE NIGERIA DEBT MANAGEMENT OFFICE NIGERIA MANAGING NIGERIA S DEBT STOCK Presentation at the Investor/Issuer Education Outreach Programme Organised by Securities and Exchange Commission on July 27, 2011 By Patience

More information

Chapter 1 The Scope of Corporate Finance

Chapter 1 The Scope of Corporate Finance Chapter 1 The Scope of Corporate Finance MULTIPLE CHOICE 1. One of the tasks for financial managers when identifying projects that increase firm value is to identify those projects where a. marginal benefits

More information

Financial ratio analysis

Financial ratio analysis Financial ratio analysis A reading prepared by Pamela Peterson Drake O U T L I N E 1. Introduction 2. Liquidity ratios 3. Profitability ratios and activity ratios 4. Financial leverage ratios 5. Shareholder

More information