Here is the synopsis of our sample research paper on Capital Structure, Valuing a Firm and Pricing an IPO. Have the paper e-mailed to you 24/7/365.
Essay / Research Paper Abstract
This 20 page paper looks at three aspects of financial management. The first part of the paper looks at the relevance of capital structure on cost of capital and valuation of the firm. The second part of the paper considers how a firm may be valued and lastly there is the a consideration of why an IPO is likely to be undervalued at sale. The bibliography cites 16 sources.
Page Count:
20 pages (~225 words per page)
File: TS14_TEcptlipo.rtf
Buy This Term Paper »
Unformatted sample text from the term paper:
has had advice that lower debt levels may be preferable to shareholders and as such optimise the value of the compnay. The solicitor disagrees with the advisers and argues there
will be little or no impact on the firm value that is dependant on the underlying financial structure. A key issue is also seen as the impact this will have
in costs, with higher costs resulting in potentially less value seen in the compnay due to less net profit. We are going to argue that capital structure will not
have an impact. We will first consider the impact that capital structure will have on the cost of capital and then at the overall impact on the value of the
compnay. Any business will have to pay a rate of return on the capital it uses, this may be in the form of return on the share capital, such
as dividends, or in interest on loan payments. Cost of capital in any organisation, international or domestic is the return expressed as an interest rate the company pays on all
of the capital which is used in the financing of its activities. The approach to calculating the cost of capital may take place in several ways. For example, the
calculation of the cost of equity and the cost of loans and debt which is then calculated broadly proportionally and result in the total cost of capital. Alternatively the method
used may be that of the weighted average cost of capital. The value in knowing the cost of capital is multifaceted. From internal calculations the best course of action
may be projected by looking at the changes any change in the capital base will create it is also useful as the base line or hurdle that needs to be
...