Finance de La Torre - 1488 Words

De la Torre a) Why is corporate finance important to all managers? * It is important for the decisions taken in the company, investment decisions and financing decisions. * Every decision taken in the company has a financial impact. * Investment projects, how much to invest and what assets to invest. * To raise the necessary cash * To increase the shareholders’ stake in the firm. b) Describe the organizational forms a company might have as it evolves from a start-up to a major corporation. List the advantages and disadvantages of each form. Sole Proprietorship. Sole owner of a business. The manager and the owner is the same person. The sole proprietorship has unlimited liability. You pay taxes as owner and†¦show more content†¦WACC =XD (rD) (1-Tx) + XS(rS) XD: % de los pasivos del total de deuda de acreedores financieros representados del total de los recursos. rD: Costo de los recursos de los acreedores (tasa de interà ©s). Tx: Tasa de impuestos. XS: Proporcià ³n de los recursos de los accionistas en el total de recursos con costo explà ­cito. rS: Costo de oportunidad de los recursos aportados por el accionista. Tasa de retorno de los accionistas en funcià ³n del riesgo que enfrenta. h) How do free cash flows and weighted average cost of capital interact to determine a firm’s value? Tiene que ver con valuacià ³n. Firm value es el valor presente a precios del mercado. Valor intrà ­nseco: valor presente de los flujos de efectivo. A firm’s fundamental, or intrinsic, value is defined by: Value= FCF11+WACC1+FCF21+WACC2+FCF31+WACC3+†¦+FCF∞1+WACC∞ i) Who are the providers (savers) and users (borrowers) of capital? How is capital transferred between savers and borrowers? Savers: Households are net savers. Persons, families, companies which their income is greater than their expenses. Governments are net savers when they run a surplus. Borrowers: Non-financial corporations are net borrowers. Governments are net borrowers when they run a deficit. Capital is transferred through: a) direct transfer (in example, corporation issues commercial paper to insurance company) b) an investment banking house (in example, seasoned equity offering, orShow MoreRelatedKatipunan3171 Words   |  13 Pagessociety or gather together.[3]  Its official revolutionary name is  Kataas-taasang, Kagalang-galangang Katipunan ngÃŒÆ' mgÃŒÆ'à ¡ Anak ngÃŒÆ' Bayan[1]  (English:  Supreme and Venerable Society of the Children of the Nation,  Spanish:  Suprema y venerable asociacià ³n de los hijos del pueblo). Katipunan is also known by its acronym,  K.K.K..  Being a  secret organization, its members are subjected to utmost secrecy and are expected to abide with the rules established by the society.[3]  Aspirant applicants were given standardRead MoreSelena: La Reina de Tejano1615 Words   |  7 PagesSelena, â€Å"Le Reina de Tejano†, was born on April 16, 1971, in Lake Jackson. She was the youngest of three children of Abraham Quintanilla Jr. and Marcela, his wife. At a young age, Abraham had a strong passion for music that he still has. During the 1950s and 1960s, him and his friends made a group called â€Å"Los Dinos† and played at nightclubs and restaurants. Even though his passion for music, he gave it up when he got married and earned a job at Dow Chemical as a shipping clerk. From his experienceRead MoreTerrorism : The Threat Of Terrorism898 Words   |  4 Pageshave already been prevented. The FBI and local police stop some sort of terrorist threat every week; although it is very rarely made public. The more important question should be what are they going to use against the US next? According to Fermin De La Torre, he believes it will be an active shooter or IED that terrorist will mostly use. I would have to disagree, however based on the escalation level terrorist have already taken. They may use IEDs to distract or disarm, but in order to destroy it willRead MoreArgentina Crisis Of Argentina s Emerging Economy3468 Words   |  14 Pages†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..†¦.10 Introduction Argentina before its Great Depression in 1998-2002 Prior to becoming a democratic country, Argentina was exposed to a military dictatorship. Under this regime the Economy Minister was Jose Alfredo Martinez de Hoz whose neoliberal economic platform sided along to anti-labor, monetarist policies and financial liberalization. As a result of this regime, Argentina accumulated a $45 billion foreign debt. This lead interest rates to exceed trade surpluses, unemploymentRead MoreThe Birth of Heroes and the Rise of Filipino Nationalism12139 Words   |  49 Pagessurvived nature’s wrath died one after another, victims of the dreaded cholera and Malaria. In the newly established community in Tutuban, Santiago Bonifacio, the local teniente mayor, is deathly worried. His beautiful Spanish mestiza wife Catalina de Castro is seven months pregnant. They survived the quake, but barely had the resources to survive another one. Catalina was worried for her relatives in Zambales, as reports came in that her hometown was also damaged. The Bonifacios lived in a smallRead MorePension Funds Case Study1499 Words   |  6 Pagesinvestors are better able to allocate their investment capital in a wider range of securities, meaning that they would supply funds to a wider spectrum of participants that could be discarded in poor regulatory environments. Furthermore, this follows De la Torre, Gozzi and Schmulker’s hypothesis on the adverse effects of premature financial liberalization, as suboptimal regulatory institutions may cripple the effect of pension funds’ investments in the growth of capital markets. In a similar way to institutionalRead MoreStudy About Ofw1697 Words   |  7 Pagesthe most usual Filipino workers are deployed.  It is not unknowing that â€Å"a throbbing Filipino chooses to leave his home and family behind to find better working conditions and ultimately offer a better quality of life for himself and for the kin† (de la Torre, 2004). In Stella P. Go’s article, Towards the 21st  Century:  Whither Philippine Labor Migration published in 1998, she said that  Philippines  has become the largest exporter of human capital in  Asia  due to years of economic and political mismanagementRead MoreInstitutional Revolutionary Party (PRI) and Mexico Essay2544 Words   |  11 Pagesenvironmental platform has allied with the PAN before to elect the first non-PRI president in almost seven decades but ever since it has mostly allied with the PRI. Our second major political party is the Party of the Democratic Revolution (Partido de la Revolucià ³n Democrà ¡tica) or PRD, which is a left of, center party. PRD was created as a National Democratic Front, a combined effort from a group of people that divided from the PRI and several forces from the left, in the 1988 elections. The firstRead More Analysis of Argentinean Debt Crisis: IMF and Government Actions1879 Words   |  8 PagesBefore the end of the 90’s, things began to fall apart. The crisis can be traced back to the 80’s, where the country experienced extreme hyperinflation. The currency inflated at over 5000% this was during the presidency of Carlos Menem and, his finance minister, Domingo Cavallo who attempted three ways to limit inflation. The first was a stabilization act with the backing of a large private firm; the second attempt was to buy up certificates of deposit into government bonds (Nataraj Sahoo 2003)Read MoreA Brief Note On The Conservation Of Ruins1842 Words   |  8 Pagesmore flexible and creative approaches. Kent (2003), suggests that the perfect way to ensure the ruins maintenance is to make use of the ruins. This statement is supported by Davies (2011), who claim that there are not many organisations afford to finance a building without a beneficial use; consequently, these organisations have to take a commercial view of their building stocks. On the other hand, according to Australian Heritage Council (2013) this approach onl y be appropriate: ‘when the significance