Advanced Corporate Finance Coursework Example | Topics and Well Written Essays - 1000 words

Advanced Corporate Finance - Coursework Example Differential tax treatments are the causes for less than one dividend drop ratios (DDR). Thus, through their research on the relationship between taxes and a firm’s decisions, they articulate that in a rational market, the ex-dividend cutoff should reflect the value of capital gains and dividends to a marginal shareholder. However, when tax enters into the investors’ decisions, the fall in share price in the ex-dividend should show the price of the post value capital gains relative to the post value of dividends. Therefore, because of the influence of tax differential rates, on the capital gains and dividends, the DDR will be less than one because of the fall dividend values due to higher taxation as a result of the effect of personal taxes (Elton, Gruber, & Blake, 2005). Therefore, this impact will influence the firm’s decision in terms of contributions to capital gains and dividends. There are other factors that like tax influences the decisions of a firm to ei ther pay dividends or capital gains. The availability of growth opportunities for investment requires that firms plow back their profits to invest in projects with positive NPVs as illustrated by the signaling hypothesis lieu of paying or increasing their dividend payout, which sends a negative signal to the investors. The stability of earnings is another factor. Firms that have constant earnings are likely to pay out dividends unlike firms with lower or unstable earnings whose dividend payout is likely to result in the decline of growth of their earnings.

The Ethics of Student-Faculty Business Deals :: Argumentative Persuasive Teacher Essays

The Ethics of Student-Faculty Business Deals The Akamai Corporation has meant big money for one Massachusetts Institute of Technology professor and one of his students. Back in 1995, Tom Leighton, a professor of applied mathematics at MIT, started playing around with ways to use complex algorithms to ease congestion on the Web. He enlisted several researchers, including one of his graduate students, Danny Lewin. At the time, they weren't thinking about starting a company. But Mr. Lewin, following the keen instincts of a cash-strapped graduate student, suggested they enter the project in the Sloan School's annual business-plan competition. They won the software category in the preliminary round and then entered the finals, where they finished among the top six. Mr. Leighton and Mr. Lewin were still interested in the technology mainly as an academic exercise, but the possibility that their work could have real-world applications pulled them inevitably into business. They launched Akamai Technologies Inc. in the fall of 1998, and took it public the following October. Opening day saw the stock soar from $26 a share to more than $145, giving the company a day-one market cap of $13.13 billion. This sounds like a great business venture, but there still is a small problem. Mr. Lewin was one of Mr. Leighton's students when they formed the Akamai Company. This brings about the moral question of the case. Should students and professors be allowed to start companies together? Although there is no clear answer, there is widespread agreement among administrators that schools need to address the question. As a result, many M.B.A. programs are in the process of reviewing and, in many cases, implementing policies and guidelines governing student-professor business collaborations. The burden of this moral question falls mostly on professors since student is not an establish profession and thereby has no formal code of ethics. On one side of the issue are those who point to ethical considerations and insist that schools can't tolerate the possibility that students may perceive any conflict of interest on the part of a professor. On the other side are those who've invested substantial time and money in a business-school education specifically to gain access to professors. These people don’t want to consider any restriction on their ability to conduct their business lives as they see fit. Caught in the middle are administrators, who must protect their schools' academic integrity while trying to accommodate students and faculty alike.

Pest Analysis of Coca Cola

PEST Analysis The PEST Analysis identifies changes in the market caused by: Political , Economical, Social and Technological factors. Political Analysis and Factors: Those Non- Alcoholic Beverages like; Coca-Cola, are within the food category, under the FDA (Food and Drug Administration). The government has control over the manufacturing procedure of these products in terms of regulations. Companies who fail to meet the standards of law, are fined by the government. Following are provided some of the factors that are influencing Coca-Cola's Operations. 1.Changes in Laws and Regulations like; changes in Accounting Standards, taxation requirements (tax rate changes, modified tax law interpretations, entrance of new tax laws), and environmental laws either in domestic or foreign authorities. 2. Changes in Non-Alcoholic business era. These are; competitive product and pricing policy pressures, ability to maintain or earn share of sales in worldwide market compared to rivals. 3. Political Conditions, specifically in international markets, like; civil conflict, governmental changes and restrictions concerning the ability to relocate capital across borders. 4.Ability to penetrate emerging and developing markets, that also relies on economic and political conditions, and also their ability to form effectively strategic business alliances with local bottlers, and to enhance their production amenities, distribution networks, sales equipment, and technology. Economic: In 2001, the recession influenced the companies operations, but because of aggressive actions the US Economy estimated to have returned in positive growth in 2002. Currently, because of global recession, Coca-Cola can borrow capital and invest in other products, because the interest rates are lowered.Also, it can borrow to advance its research of new products and technology. By researching for new products is cost effective, the company could sell its products at a lower price, so its cutomers would purchase more Coca-Cola products at a lower price. Social: The majority of US citizens are excersizing healthier lifestyles. That has strongly influenced the sales of non-alcoholic beverage sector, because many customers are switching to bottled water and diet colas like; Coca-Cola Light or Zero, instead of drinking beer or other beverages.Additionally, time management is quite 43 % of all households, and it has increased. Customers aged from 37 to 55, are concerned with their nutrition. Also, large portion of the population is within the range of baby boomers age. While many cutomers are getting at older ages in life, they are more concerned in long term increasing their permanence. That will continue to affect the non-alcoholic beverage sector, by increasing the demand, in healthier and other beverages. Technological: Some factors that affect the company's actual results to vary essentially from the expected results, are the following: 1.The efficiency of company's advertising, marketing and promotional programs, The new technology advances of television and internet that use incomparable effects for advertising through the use of media. Those advances make the products seem attractive. This supports the selling promotion of the products. Coca-Cola in media tends to use this technology so, to sell effectively its products. 2. Entrance of cans and plastic bottles in the past, have increased sales volume for the company because they are easier to carry and customers can bin them once they have been used. . Since the technology is advancing continuously there has been entrance of new machineries' equipment all the time. Because of that, Coca-Cola's production volume has increased sharply compared to few years ago. 4. CCE-Coca-Cola Enterprises have six factories in Britain by using modern technology equipment so to ensure top product quality and quick delivery. In Wakefield,Yorkshire in 1990, CCE opened one of the Europe's largest soft drinks factory. That factory has t he ability to produce faster the cans of Coca-Cola even faster than bullets of a machine gun.

Essay on A Corporate Code of Ethics is Not Enough

After news of the scandal of Enron, one of the hottest items on e-Bay was a 64-page copy of Enron’s corporate code of ethics. One seller/former employee proclaimed it had â€Å"never been opened.† In the forward Kenneth L. Lay, CEO of Enron stated, â€Å"We want to be proud of Enron and to know that it enjoys a reputation for fairness and honesty and that it is respected (Enron 2).† For a company with such an extensive code of ethics and a CEO who seemed to want the company to be respected for that, there are still so many unanswered questions of what exactly went wrong. I believe that simply having a solid and thorough code of ethics alone does not prevent a company from acting unethically when given the right opportunity. Investors and†¦show more content†¦It can include the rules for governing the company in cases of employees being caught lying, cheating, or stealing. In creating a code of ethics, several questions should be asked. What is the purpose of the new code? What are the needs and values of the organization it is being created for? Who should be involved in creating this code? How is the code intended to be implemented? How and when will the code be reviewed and revised? The process of created a solid code of ethics matters just as much as the final product. The company’s code of ethics must also make sense to its employees. The code must be written in a practical and understandable manner. It should provide clear action statements that indicate what should and should not be done. The code should be clearly integrated with the company’s mission and vision. It should be apparent to the employees how following the code of ethics will aid in accomplishing the company’s vision and the employees must see a tie that following the code aids in their personal success within the company (Hawkins 1). Management Involvement Having a company code of ethics alone simply is not enough. As the latest news has show, Enron had a very extensive code of ethics that went ignored. A tone must be set by senior management on a daily basis. If an employee sees a member of management padding an expense report, then they feelShow MoreRelatedEthical Ethics Of An Ethical Corporation Is Not An Oxymoron1645 Words   |  7 Pagestowards ethics in today’s workplace is an important issue; recent headlines show consequences of unethical behavior on both companies and employees. Contained within the basic code of ethics in the workplace are words like, trustworthiness, respect, responsibility, fairness, (Chatov, 1980). Consider questions like, is it ethical to take office supplies from work for home use, or is it ethical to use company time for personal business? What is ethical behavior? 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