Alternative Capital Structure Paper Essays - Capital, Contract Law

Alternative Capital Structure Paper Essays - Capital, Contract Law Alternative Capital Structure Paper Kristopher Watkins FIN/419 November 23, 2015 James Hagist Alternative Capital Structure Paper Land Recovery has decided to investigate several forms of financing assets to find an alternative capital structure. It is going to implement debt financing in order to raise its capital and has laid out three different options to consider for the new policy. Important aspects of this policy include current ratio, net working capital position, and expected rate of return on stockholders' equity, which you will find within the spreadsheet included at the bottom of this paper. We know for each option there will be certain variables that do not change. Each option includes current assets of 30 million and fixed assets of 35 million, which total 65 million in assets. We also have a tax rate of 40% and EBIT of 6 million. Stockholders equity has provided us with 40 million in assets, as well. Debt for each option is 25 million, though the difference of long term and short term debt changes for each option. Now we will break down the differences of each of those options. Option 1 Provided with option 1 is a short term debt of 24 million and a long term debt of 1 million. Option 1 has the lowest interest expense at 1.405 million. Although, it shows this option will pay the highest amount of taxes at 1.838 million reducing earnings from 4.595 million to 2.757 million. This option provides the highest rate of return on stockholders equity at 6.89%. This option has the lowest net working capital of 6 million, as well as the lowest current ratio at 1.25:1. Because of the low current ratio and net working capital I would consider this option to be the highest in risk and profitability. Option 2 Provided with option 2 is a short term debt of 18 million and a long term debt of 7 million. Option 2 has a medium interest expense at 1.460 million. It shows this option will pay a medium amount of taxes, as well, at 1.816 million reducing earnings from 4.540 million to 2.724 million. This option provides a medium rate of return on stockholders equity at 6.81%. This option also has an increased net working capital of 12 million, as well as a medium current ratio at 1.66666666666667:1. Because of the medium current ratio and net working capital I would consider this option to fall within the medium range of risk and profitability. Option 3 Provided with option 3 is a short term debt of 12 million and a long term debt of 13 million. Option 3 has the highest interest expense at 1.515 million. It shows this option will pay the lowest amount of taxes at 1.794 million reducing earnings from 4.485 million to 2.691 million. This option provides the lowest rate of return on stockholders equity at 6.81%. This option has an even more increased net working capital of 18 million, as well as the highest current ratio at 2.5:1. Due to the highest current ration and net working capital of the 3 options I would declare this option the lowest in risk and profitability. Which Option is Best? Of the three options provided each has given us a slightly different alternative to decide upon the best possible capital structure. Although option 1 has the lowest interest expense, as well as the highest ROE, its net working capital and current ratio is significantly lower than the other two options. For these reasons I would choose not to go with this option, as having such a low net working capital and current ratio could cause the company problems with creditability towards their investors. Option 2 provides a rather level medium between the two options, though I would be particularly more attracted to option 3. The main reasons for this would be because of the high current ratio and significantly higher net working capital, which goes from 6 million in option 1 to 18 million in option 3. Although we would be slightly reducing our ROE the significant increase of net working capital and current ratio will allow better protection for the companys investments. Conclusion Overall, this decision could be made solely based upon the opinions of the management in charge of making these decisions.

Angela Carters The Bloody Cha essays

Angela Carters The Bloody Cha essays "How can the bitten apple flesh out its scar again?": Bridging the gap between our Natural and animal selves, in Angela Carters The Bloody Chamber Angela Carters The Bloody Chamber sets out to examine sexuality for women within a misogynistic society. I believe that Carters transformation of such classic fairy tales as Beauty and the Beast, and Little Red Riding Hood, is her attempt at bringing to light ideas that have always existed within those tales yet have never been understood. What Cater is trying to show is that society embraces these fair tales for a reason, and its not because of the handsome prince s, and happy endings but rather because of the fact that they show how todays culture has distanced itself from nature, and the problems that arise as a result of that. Carter seems to feel as though civilization has pushed nature aside, and is fully intent on covering it up, and that todays culture would rather go after what is fake and unreal rather than what comes from nature. The question that The Bloody Chamber seeks to answer is ...how can the bitten apple flesh out its scar again? In other words, now that society has become so distant form nature, how can it go back, and repair the damage it has caused? Carters answer comes in the form of one word mutilation, which in her case is not a reference to bodily harm, but rather the idea of mute or silence. I would like to argue that it is this idea of muting or silencing nature that is the key to understanding how the bitten apple can flesh out its scar again. In my opinion, Carter is suggesting that it is when we stop silencing the voice of nature and begin to embrace it, that the irreparable gulf that currently separates us from our Natural and animal selves can be bridged. At that point, the scar that marks our separation from Nature can finally begin to he...

Personal consumption journal Essay Example | Topics and Well Written Essays - 500 words

Personal consumption journal - Essay Example Reason for purchase: Where I work, I am quite limited to what I can buy to eat depending on the day. On days when I am alone in the office, I cannot leave the office premises to buy food. In this case therefore, I am limited to restaurants that deliver fast foods. This has proven to be extremely expensive, therefore, I try no to do it very often. The meal consisted of chow mien, and 2 entrays with soup. I choose this because it was the most appropriate for the money that I had at the moment. I could also eat half of the meal then half later. Reason for purchase: I really needed the face wash. I have always loved the Nivea brand for its high quality products. I was more inclined to purchasing the face wash as it was cheaper by 1$ and I thought I would save this dollar for other reasons especially buying lunch. I would have selected Olay Essentials Refreshing Face Wash which is cheaper and went at 3.9$, but Nivea fulfils my need. Reason for purchase: I purchased this product as it was two dollars cheaper. In as much I do not like the brand, I like the fact that it is cheaper, and it will serve the purpose (Lecture notes, 2014). It is on very rare occasions that I get the chance to save this much. I would have preferred L’Oreal though for its good quality. Reason for purchase: From the response from my cat, I can easily tell that Fancy Feast Cat Food is delicious. I also purchased this product as it contains a combination of ingredients that have shown good results on my cat’s wellbeing. The product is better than Delta Pet which did mot yield good results with my cat. Reason for purchase: I purchased this item as I wanted to add something to my wardrobe. It has been a while since I purchased something new. I was also more motivated in making this purchase as the item was cheaper and would me increase my savings (Lecture notes, 2014). Reason for purchase: My week