Problem Speech or Presentation Example | Topics and Well Written Essays - 500 words

Problem - Speech or Presentation Example Financial position to increase by less than half: Of course, the recommendation assumes that the stock split will not have effect on the price, but it does have an effect because the price is a factor of the demand and supply in the market. And while perfect information is assumed under Modigliani and Miller argument, the price is supposed to drop. Although this drop in market price cannot be estimated fully as to how much, the increase in financial position with at least the amount of stock that is traded, by undertaking this decision on capital structure, the financial position will increase at least by less than half. Modigliani and Miller proposes that debt policy should not matter, as in a tax-free economy and well-functioning markets, dividing the capital structure between debt and equity will have no effect on the total value of the company. But in the real world where taxes are prevalent, taxes provide tax shield or tax deductions for interest expenses. This gives a firm advantages of utilizing debt for its capital structure. The effect of increasing debt results in what has been called financial leverage. This is apparent in the computation of cost of capital; by computing the relative weights of debt and equity as proportions to the overall capital mix, multiplied by their returns cost of capital is computed. However, the computation is not complete unless the tax deductions for interest expenses, hence the tax rate is subtracted from the return of debt, which is then multiplied to the proportion of debt in the capital structure. Given this, increase in debt, as it gives tax advantages, lowers the cost of capital for the firm. Because of this implication, it seems to be beneficial for financial managers to increase debt in order to decrease the cost of capital for the firm. The cost of capital for the firm has a serious implication

Self-discovery Essay Example | Topics and Well Written Essays - 1000 words

Self-discovery - Essay Example Some of the things that I have discovered with regard to synthesis include facts such as one of the main advantages of the aforementioned synthesis is the achievement of a neutral clarity that is guided by the connection of different perceptions whose missing pieces in a sense can be said to come together. The combination of these two accomplishments allows one to have a better understanding of their self in general. The discoveries that are learnt from each inventory allows the individual to dive deeper into their frame of thought and catch a glimpse of a part of them that may have not been visible to them at the beginning. As mentioned earlier, these inventories help an individual make a number of discoveries about their self that they can in turn use towards their benefit through proper planning and focus. These discoveries can play a large role in my life and as such have not been taken lightly but have instead been used to mold my activities to that which properly suit my intere sts and ambitions. The MBTI provided an opportunity to discover information about my character as well as any peculiar features that may arise. This assessment revealed that I can be described as an individual who is equipped with open thinking and intuition. I feel that these assessments are accurate to a general extent as a result of my nature to try and maintain a fair level of acceptance with other individuals no matter their different backgrounds as long as they do not infringe on mine or other people’s personal space with regard to their rights.