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Cf Financing 7

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rajeevgupta

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Economía y finanzasEmpresariales
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[object Object]
In 2000, Philip Morris generated in cash $11billion. It paid 4.5b as dividends, repurchased shares for 3.6b & 2.9b was reinvested in business. The company borrowed 10.9b and raised 100m thru equity.
Financing ,[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object]
Capital Structure ,[object Object],[object Object],[object Object]
Efficient Markets ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Cost of Capital ,[object Object],[object Object],[object Object]
Weighted Average Cost of Capital ,[object Object],[object Object],[object Object],[object Object]
Weighted Average Cost of Capital ,[object Object],[object Object],[object Object],[object Object],[object Object]
Our cost of capital is calculated using the approximate market value weightings of debt and equity used to finance the company. The cost of debt is simply our after-tax, long-term debt rate, which is around 5.7%. The cost of equity is approximately 11.4%. - The Quaker Oats Company, 1992 Annual Report.
WACC numerical ,[object Object],[object Object],[object Object],[object Object],[object Object]
Weighted Average Cost of Capital ,[object Object],[object Object]
Miller Modigilliani Hypothesis ,[object Object],[object Object],[object Object]
Principles ,[object Object],[object Object],[object Object],[object Object]
Proposition ,[object Object]
Implications of Debt Irrelevence ,[object Object],[object Object]
Impact of Debt ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Patterns of Financing ,[object Object],[object Object]
Empirical Capital structure ,[object Object],[object Object],[object Object],[object Object]
Capital Structure Determinants ,[object Object],[object Object],[object Object]
Concept ,[object Object],[object Object],[object Object],[object Object]

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Cf Financing 7

  • 1.
  • 2. In 2000, Philip Morris generated in cash $11billion. It paid 4.5b as dividends, repurchased shares for 3.6b & 2.9b was reinvested in business. The company borrowed 10.9b and raised 100m thru equity.
  • 3.
  • 4.
  • 5.
  • 6.
  • 7.
  • 8.
  • 9.
  • 10. Our cost of capital is calculated using the approximate market value weightings of debt and equity used to finance the company. The cost of debt is simply our after-tax, long-term debt rate, which is around 5.7%. The cost of equity is approximately 11.4%. - The Quaker Oats Company, 1992 Annual Report.
  • 11.
  • 12.
  • 13.
  • 14.
  • 15.
  • 16.
  • 17.
  • 18.
  • 19.
  • 20.
  • 21.