For Baidu, if they need to fund a US-based team (in fact they do), they do need to raise dollar-dominated debt. Just like you said, professor, it's not necessarily where the revenue exposures are but where the production is.
Thanks professor; question: yes I agree that raising debt increases cost of equity, but if I don't foresee ever raising equity (or debt) in the near future, how does the "hidden increase in cost of equity" actually hurt my company (aside from increasing chance of going bk- or maybe that's the main/only way)? Thanks a lot, really enjoy all your videos
If the corp tax is lower then shouldn’t I have more cash flow to pay debt obligations or flexibility on reinvesting the capital or higher net income? Simply I can see the point of D/(D+E) being lower because either retained earning and/or cash being more. Any studies or personal research pointing this trend? Utilities review can be a good starting point.
Dear Friends, I have a case of capital budgeting: Example: I want to build new factory, I know the build cost is CAPEX budget and cash outflow. When the factory begin run, I need purchase raw materials, purchase labor, purchase overhead (water, electric,etc) to manufacture finished goods. I know this costs depreciation cost from this factory is OPEX cost. Question: With the capital budgeting, I will collect the CAPEX and OPEX inside a plan or seperate plans?. Capital budgeting need to OPEX cost to run and examine effeciency of this factory, right?. Could you help?. Thank you.
Dear Friends, I think each capital budgeting have own capital structure. Now, with 10 capital budgeting, I want to make the summary report of Capital structure. Could you share?. Thank you.
Feel free to correct me if I'm wrong, but the optimal capital structure should yield the greater value relative to the unoptimised capital structure. This is because the cost of capital is lowest at the optimal capital structure.
Dear Friends, I think each capital budgeting have own capital structure. Now, with 10 capital budgeting, I want to make the summary report of Capital structure. Could you share?. Thank you.
For Baidu, if they need to fund a US-based team (in fact they do), they do need to raise dollar-dominated debt. Just like you said, professor, it's not necessarily where the revenue exposures are but where the production is.
Thanks professor; question: yes I agree that raising debt increases cost of equity, but if I don't foresee ever raising equity (or debt) in the near future, how does the "hidden increase in cost of equity" actually hurt my company (aside from increasing chance of going bk- or maybe that's the main/only way)?
Thanks a lot, really enjoy all your videos
52:43 Love the Volvo-Yugo, 2 cars, 2 wives analogy, lol
Holle sir. Good session, thank you
If the corp tax is lower then shouldn’t I have more cash flow to pay debt obligations or flexibility on reinvesting the capital or higher net income? Simply I can see the point of D/(D+E) being lower because either retained earning and/or cash being more. Any studies or personal research pointing this trend? Utilities review can be a good starting point.
Dear Friends,
I have a case of capital budgeting:
Example: I want to build new factory, I know the build cost is CAPEX budget and cash outflow.
When the factory begin run, I need purchase raw materials, purchase labor, purchase overhead (water, electric,etc) to manufacture finished goods.
I know this costs depreciation cost from this factory is OPEX cost.
Question: With the capital budgeting, I will collect the CAPEX and OPEX inside a plan or seperate plans?.
Capital budgeting need to OPEX cost to run and examine effeciency of this factory, right?.
Could you help?. Thank you.
Dear Friends, I think each capital budgeting have own capital structure. Now, with 10 capital budgeting, I want to make the summary report of Capital structure. Could you share?. Thank you.
Dear friends, I have a question: Could you explain the relationship between Capital structure and company value?. Thanks.
Feel free to correct me if I'm wrong, but the optimal capital structure should yield the greater value relative to the unoptimised capital structure. This is because the cost of capital is lowest at the optimal capital structure.
based and capitalpilled
Sir your voice not clarity
49:26 so rude
Dear Friends, I think each capital budgeting have own capital structure. Now, with 10 capital budgeting, I want to make the summary report of Capital structure. Could you share?. Thank you.