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When was Chuck Adams born?
Chuck Adams was born in 1971.
How tall is Sunrise Adams?
Sunrise Adams is 5' 7".
When was Granville Adams born?
Granville Adams was born in 1963.
What are views of Modigliane and Miller on the capital structure?
Franco Modigliani and Merton Miller (MM) produced the Modigliani-Miller Theorem, also referred to as the Capital Structure Irrelavence Theorem, that forms the basis of modern capital structure thinking. The basic theorem states that, under the random walk, in the absence of taxation, bankruptcy costs and in an efficient market, the value of a firm is unaffected by how it is financed (BPP, 2006).Modigliani-Miller Theorem with no taxesInitially the theory was proven in a situation with no taxes. Take for example two companies that are exactly the same in all respects other than the fact that Company A is unlevered and Company B is levered. The financial results for the two firms are as follows.Company A Company B£ £Earnings 1,000 1,000Interest - (400)Dividends 1,000 600 .Both firms pay out all earnings each year, either as dividends to equity investors, interest to debt investors, or a combination of the two. MM pointed out that both Company A & B paid out all their earnings to investors, whether this was paid as dividend or interest is irrelevant, and as cash flows are the same in the hands of their investors they must have the same total market value. The theory predicts two main points.Proposition 1:VU =VL where VU is the value of an unlevered company and VL is the value of a levered form.Proposition 2:· ke = required rate of return on equity, or cost of equity.· ko = cost of capital for an all equity firm.· Kd = required rate of return on borrowings, or cost of debt.· D / E = the debt-to-equity ratio.This formula is derived from the theory of WACC, a higher D/E leads to higher required return on equity due to increased risk involved for equity holders.Modigliani-Miller Theorem with taxesMMs initial theory was later developed to include taxation.Proposition 1; VL = VU + TcD· TcD is the tax rate x the value of debt.· VL = the value of a levered firm· Vu = the value of an unlevered firm.The assumption is made that debt is perpetual. This equations suggests the advantage of leveraging because firms will reduce tax bills by deducting interest payments, where dividends are non-deductable.Proposition 2:· rE = required rate of return for equity, or cost of equity.· RO = the cost of capital for an all equity firm.· rD = required rate of return on borrowings, or cost of debt.· D/E = debt-to-equity ratio.· Tc = tax rate.MMs revised theory of capital structure with the inclusion of taxation identified that as a level of gearing increases, equity can is replaced with cheap debt and WACC is reduced. Therefore an optimal capital structure exists at a point of 100% debt.Assumptions are still present in the updated model; corporations are taxed at the Tc rate on earnings after interest, no transaction costs exist and individuals and corporations borrow at the same rate.
When was The Education of Henry Adams created?
The Education of Henry Adams was created in 1918.
Equity Theory of motivation was formulated by?
The Equity Theory of motivation was formulated by J. Stacy Adams in 1963. The theory suggests that people are motivated when they perceive their inputs and outputs to be equitable to those of their peers. When there is a perceived imbalance in this equity, individuals may be motivated to restore balance through various means.
Compar and contrast equity theory andexpectancy theory explains?
compare and contrast Expectancy Theory and Equity Theory
What are the disadvantages of equity?
what are disadvatage of equity theory
Is there a biography on John Stacey Adams?
Yes, there are biographies on John Stacey Adams. He was a psychologist known for his equity theory in the field of organizational psychology. You can find detailed information about his life, work, and contributions in various sources.
What are the Limitations of cardinal utility?
give the limitations of cardinal utility theory
What are the similarities and differences between equity theory and expectancy theory?
both are theories
What is the limitations of conventionalism theory?
the limitations of the conventionalism theory is that it is objective, so basically there is only one answer or point of view.
What are the disadvantages of equity theory?
Some disadvantages of equity theory include its reliance on subjective perceptions, difficulty in measuring inputs and outcomes objectively, and the challenge of balancing individual perceptions of fairness within a group setting. Additionally, the theory may not fully account for external factors impacting perceptions of fairness, such as societal norms or cultural differences.
What has the author J Frank Adams written?
J. Frank Adams has written: 'Stable homotopy theory' -- subject(s): Homotopy theory
What does the equity theory suggest?
An equity theory is that which it is believed people obtain job satisfaction and further motivation by comparing their work related load and their salary against that of others in similar firms or positions.
Equity theorem of motivation was formulated by?
equity theorem of motivation was formulated by a.M S Eve b.Linda Goodman c.Sigmund Freud d.J S Adams
What has the author Lalith P Samarakoon written?
Lalith P. Samarakoon has written: 'Equity Securities' 'Equity Markets: Theory and Practice'
