Study On Long Term Financing Structure Finance Essay - Free Essay Example

Sample details Pages: 3 Words: 857 Downloads: 6 Date added: 2017/06/26 Category Finance Essay Type Research paper Did you like this example? For last five financial years account shows that company had lower debt to equity ratio. During the period of 2005, 2006 and 2007 its net equity to debt ratio was 0.34, 0.30 and 0.42 respectively. But during the year of 2008, when recession hit badly in UK and worldwide; ratio jumped to 1.37. Don’t waste time! Our writers will create an original "Study On Long Term Financing Structure Finance Essay" essay for you Create order Company took some tough decisions to protect and strengthen the business for long-term. It is obvious that company tried to keep ratio down to 0.30 to 0.40 and for that reason ratio came down to 0.59 in 2009. Group reached agreement with all of its debt providers to amend the debt facilities in April 2009. Afterwards raised pound;510m of new equity and proceeds was used to reduce companys debts. Later in 2nd quarter the housing market started to recover; as there was a huge decline in housing market; new and existing housing since 2005. During the period of 2005 and 2007 group design capital structure maintain strong credit rating and appropriate funding structure. The Group planned to match long-term assets with long-term funding and short term assets with short term findings. Group used Equity, retained profits and long term fixed interest debt, primarily to finance intangible assets, fixed assets and land. Short-term borrowings are required primarily to finance net curren t assets, which do not include land bank assets of more than one year and work in progress. Net debt as a percentage of equity was 38.2% (2006: 18.6%) however, the Group aims to maintain a strong credit rating by seeking to keep year end modified net gearing (defined as borrowings less cash or cash equivalents as a percentage of tangible net assets adjusted for deferred tax assets and retirement benefit obligations) between 40% and 60% and interest cover greater than 5 times but less than 7 times. In 2007 group set the goalsto improve the relevant margin that followed byincreasein volume growth with new outlets. Due to merger outlets increased to 234 during 2008 from 183 in 2007. But it didnt go well with plan; company faced losses in 2008 and had to close down many outlets. In the year of 2009 company operated with 172 outlets reflecting the closure of existing outlets. In 2009 Taylor Wimpeys continued its operations that generated a loss before exceptional items and tax o f pound;96.1 million (2008 loss: pound;74.7 million). For exceptional items before tax for the year total pound;603.8 million (2008: pound;1,895.0 million) and which primarily related to reviews of the carrying value of land and work in progress. For that reasons Taylor Wimpey reported a loss before tax from continuing operations of pound;699.9 million (2008 loss:pound;1,969.7 million). After having agreed with debtors about amending debt facilities; Company issues new Ordinary Share at a price of 25 pence each to raise pound;510 million net of expenses. 2005 2006 2007 2008 2009 Gearing 25.33 22.99 29.44 57.73 37.08 Net Gearing 19.15 15.68 27.65 47.79 33.38 Debt equity ratio 0.34 0.3 0.42 1.37 0.59 2005 2006 2007 2008 2009 Total Borrowings 654.2 627.8 1,545.40 2,281.60 883 Due lt; 1 Yr 15.5 14.8 13.6 124.5 12.7 Due 1-2 Yrs 1.2 0 0 0 Due 2-5 Yrs 48.5 0 0 0 Due gt; 5 Yrs 589 0 0 0 Values are in pound; millions. Dividend policy It had been group policy to create long-term value creation for shareholder. Group had progressive dividend policy for last 10 years and intend to grow inline with earnings while maintain prudent level of cover and cash flow. Group paid total dividend of 8.90, 11.10 and 13.4 pence for year 2003,2004 and 2005 respectively. Group continued policy to increase the dividend to shareholder. In 2006 9.75 pence total dividend issued and in 2007 total dividend paid increased to 15.75 pence, an increase of 6.8% from last year.Group introduced pound;750 buyback share plan in the year 2007. But that didnt go far as company only manage to buyback 94.8 millions shares only and stopped the program, given the uncertainty of UK housing market. In 2008 group did not feel it appropriate to propose an interim dividend as a result of continue decline in market conditions. Given that conditions in both our major markets remain weak, group did not proposed a final dividend for 2008. Group decided t o review its dividend policy in the light of prevailing market conditions. Similar to last Year Company didnt declare any dividend for year 2009. Although market condition was improved, thegroup didnt not feel appropriate to issue dividend as a result of ongoing uncertainty in the wider economy. 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Total Dividend (Pence) 6.12 6.7 7.4 8.9 11.1 13.4 14.75 15.75 0 0 2009 2008 2007 2006 Book Value 46.90 119.80 352.00 364.70 Market Value 35.31 87.27 278.71 328.67 Shares Issued 3,196.90 1,526.00 1,158.30 594.2 Cost of equity Cost of equity means a return require by a shareholder from a company. The traditional formula for cost of equity (COE) is the dividend capitalization model: Looking at the financial report of the company; Group did not issue the dividends for last two year and growth rate couldnt be calculated exactly as it should be. To do the calculation right; used the alternate calculation method that is Capital Asset Pricing Model (CAPM). This model defines relationship between risk and expected return and that is used in the pricing of risky securities. The original idea behind this calculation is to compensated in two ways; time value of money and risk. Risk of rate and Beta is given in financial reports. Market return was not available over the Internet and from official report. Market return was assumed 10 in this. Capital Asset Pricing Model CAPM 2009 2008 2007 2006 Risk free rate 3.1 4.4 5.1 4.6 Beta 2.82 2.82 2.82 2.82 Market return 10 10 10 10 CAPM 22.558 20.192 18.918 19.828 Taking analysis further company sales and earnings shows the company growth in terms of sales and earning for past 5 years. 2009 2008 2007 2006 2005 Sales 2,595.60 3,467.70 4,142.80 3,572.10 3,476.90 Earnings -640.6 -1840 -196.7 290.6 286.5

Descriptive Analysis of Statistical Data - 3004 Words

Final Project: Statistics II Descriptive analysis of statistical data INTRODUCTION There have always been crimes, from a treachery to an assassination. Happens in every country you can think of, and every government has to deal with it. It is really stressful to try to understand the nature of the crimes: why are they done and where could they happen next. Out of this preoccupation is that we found studies gathering data from communities; we focused on one specific crime: murders. In several communities, it is thought that the murder rate is somehow related to several factors. For instance, it is common to hear that the murder rate depends on poverty and unemployment. Starting from this hypothesis, the database found to make this†¦show more content†¦Now we are using the equation given at the partial F test. It is common that some times one of the independent variables (in this case, percentage of families with income below $5000 and percentage people unemployed) may be linearly related with another independent variable. In other words, there may be a pair of explanatory (independent) variables that measure the same thing or that they depend on each other, so it is recommended to drop one of them because having both causes instability in the model. This means that the equation wouldn’t be as precise as it should. This issue is called multicollinearity. To prove if this is the case in our study, we calculated some numbers called correlation coefficients and variance inflation factors. Basically, the rule is that if one of the correlation coefficient between a pair of explanatory variables is higher than 0.9 there is evidence of multicollinearity. 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The Purloined Letter free essay sample

This paper discusses The Purloined Letter by Edgar Allen Poe. The following paper discusses how Poe categorized his works into two distinct categories, the grotesque and the arabesque and put The Purloined Letter into the grotesque category, for its use of more realistic characters who react more humanly to the story happening around them. At the beginning of the story, it seems like a very simple detective case, not like most of Poes dark and disturbing works. It seems relatively easy to figure out that the Minister took the missing letter, for whatever reasons. However, after searching the Ministers rooms, and the Minister himself, the police still cannot find the letter, and even after a month, it is still missing. Now Poe has set the stage. Why is this letter so important, and why is it still missing, if it was such a simple case? As Dupin says, Perhaps the mystery is a little too plain, said Dupin, and already we are wondering just what it is, and why it is so plain. We will write a custom essay sample on The Purloined Letter or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page In the first few lines we read, Poe has already roped us in, by making us wonder, and making us want to know more. It is a common style in fiction, especially mysteries, but it works, and Poe is a master of setting the stage.

Life On The Set Essays - Guitar Chord File Format,

Life On The Set Teenage sex, Selfish nes and sorrow, all releated. Teen - greek for Meloncolly. Teen is harest of any decade, as your bones grow, they do hurt. Not physicaly, but you know. And its time for crudemess, denyal and destuction. And there is nothing that i thought i havnt said before, be true to your age. We can go out and *censored* 5 girls a night, wake , go to sleep at 4am and wake up at 9 and then do it all over again. . .sex is related to everything at the teen years, babeys, aids, religion. . .it all ties in to the horixontal mombo. Woman smell like no other. To be boren sexless is to be born a drone. Sex and music, the 2 most magic things. No experiance is the same to getting smashed, and *censored*ing to some hard corp *censored*. I say, break rules, take drugs, watch por, get laid, start fights, piss off your parents, why? cuz we can do it once, we have one shot. Its my life, and its now or never. Electrolites smell the greatest stoned. Jobs, do we need one? YOU CANT FIRE ME!! I FUCCKIN QUIT! Get the *censored* outa my life, im gunna make the same mistakes you did. there is no adult under 60 that hasnt smoked, *censored*ed or drake. And what can u do when u get lectured about how bad it was and why u shouldnt do it. you say, if i dont do it now, then when? Believe in no kids fogiving? No? Well one just did, but not for my actions, for the worry. Broken, shatetrd and torn, who cares? You know, Hey, i got a new complaint, im forecer in debt to you priceles advice, SO FUCK OFF AND SHUT UP! Its christmas eve, another way to decieve and lie to children. I must say, my father allways aproched santa so i wouldnt be crushed, id say, is there a santa, his reply, do you believe in him? I do believe there are laws that should be followed. Rape, if i knew someone who did it, i would nail his cock to a tree, set the tree on fire, give em a rusty butter knife and say *censored*en cut or burn. If he cut, id douse him in petrol and hand him a flair. There is a comfort in sadness, dont ask me how. Its so suthing to know that your in a false witness. I hope your still with us. If i could when i die, id come back as fire and burn all the lires, leave a blancket of ash on the ground. Its so reliefving to know that your leaving as soon as you get paid, prostitution, the cure to rape. to eliminate life, to kill, horable. . .Im not like them, i can pretend. The sun is gone, But i have a light. . Im having fun. . .I think im dumb, or mabey just happy. Yea im happy. My heart is broke, I hav e some clue, help me inhale, ill mend it with you. If you evr need anything please dont hesitate to ask someone else first. Outa the sky, into the dirt. But i am my own parasite, i dont need a host to live. Test me? AHHHH!!! get the *censored* off. . .Look on the bright side, suacide..lost oxygen im on your side. . . lack of iron? No sleeping. . .I get to feed of the dull steak. . .ITs time for the great myth to come down my chiny, ohh wait, i dont have one. . .well *censored* em, the doors unlocked.I have never at any other moment had such a urge to beat the hell outa someone, but I WONT. . .Look on the bright side, suacide, !!!!! neverm to die is to sease to exhist, . .life sux but its the only one i have. ILL BEAT YOU EVERY BIRTHDAY* sitting here is my only plase of recovery. . .I have verry bad posture. So i can sigh eternally, IM SO TIRED I CANT SLEEP!!!!!IM A LIER AND A THIEF. Battle back step down, im the king wheres my crown? Am