Sentences with phrase «because capital structure»
From the perspective of companies, it is therefore important to measure the debt - to - equity ratio because capital structure is one of the fundamental considerations in financial management.
http://accounting-simplified.com/ Not exact matches
Meanwhile, because of the structure of index funds and ETFs, capital gains are essentially nonexistent, which makes them attractive from a taxation standpoint.
But it really isn't an apples - to - apples comparison, because the investment reports include monies disbursed by non-traditional sources like T. Rowe Price and Fidelity (i.e., big later - stage players), while the fundraising stats don't account for those capital pools (only traditional GP / LP venture structures).
Insurers like structured VAs because these hybrid products require less capital to support than traditional VAs that come with lifetime income guarantees, which some insurance companies have found difficult to honor with interest rates still historically low.
«We believe that adjusted EBITDA is an important measure of our operating performance because it allows management, investors and analysts to evaluate and assess our core operating results after removing the impact of changes in our capital structure, income - tax status and method of vehicle financing, and other items of a nonoperational nature that affect comparability,» Zipcar said in its most recent filing.
In summary, because of the «use the capital once and return it» structure, high up - front losses and tax exempt investors, the best fund structure for an institutionally backed venture fund has traditionally been a limited partnership.
Because companies have different capital structures, interest expenses can skew their earnings numbers.
That assumption seems logical because the income shares are lower in the capital structure, are perpetual, and bear the risk of dividend cuts.
Up to $ 2 billion in tax losses sitting inside the Treasury structure are highly appealing to the private equity bidders because they will be able to offset some of them against capital gains elsewhere in their operations around the world, depending on the specific structures they set up.
This may be because the structure of the dwelling is not suited to basic energy efficiency improvements (e.g. solid walls) or because financially disadvantaged households lack the capital to invest in measures which bring financial benefit (e.g. Feed - in Tariffs).
The regulators haven't done well in setting up rating agencies of their own, so let the rating agencies continue on, but let the regulators be smarter in how they set the capital levels (higher for structured products than for corporates and munis, because of loss severity leverage), and what they allow regulated entities to invest in.
Enterprise value is a key metric for value investors because it represents the total value of a company and is capital structure neutral.
One) The rating agencies, much as they profited from it, were forced to rate structured finance, because the regulators needed the ratings to calculate capital charges.
Last, floating - rate loans are often most senior in corporate capital structures: important because floating - rate loans are often extended to companies with below investment - grade credit ratings.
Also, because it is set up in a corporate class structure, there are no capital gains taxes when the funds are automatically rebalanced periodically.
He's different from most value investors because he willing to invest across capital structures, across asset classes, and across geographic boundaries.
Over the years, we've refrained from recommending, or advised selling, a number of stocks, including blue chip stocks because we felt their capital structure or promotional materials were designed to make it easy for insiders to mislead or take advantage of the investing public.
However, increasing the gearing level too high would cancel any benefits associated with debt - financing because the increase in the required rate of return of investors and lenders because of the risk of bankruptcy would outweigh the tax savings as explained in the Trade - Off Theory of capital structure.
BB: Because of our structure and having not raised outside capital, there is no difference between my personal portfolio and adventur.es».
Capital gains for money market funds are zero because of their structure.
Because of the cyclical nature of the business and the high level of operating leverage ABH needs a very conservative capital structure to reduce the possibility of future bankruptcy.
I think it will come eventually in Australia, and it will come partly because of the liberalization of the capital structures, but also because of a general increase in competition fostered by globalization, technology and the realization of «outsiders» that the legal industry has been running a cozy and inefficient quasi monopoly for too long.
«He got some tax advice in the U.S. because that's where the capital was to be deployed and the advice he received was to structure the investment a certain way.
Only two years ago, owners typically were able to obtain a senior loan on about 65 % to 75 % of the total capital structure of a deal, but that range has fallen to between 50 % and 60 % because of rising risks in commercial real estate, says Donald Braun, the president of Hall Financial Group, a Frisco, Texas - based provider of mezzanine financing.
Because borrowers are making relatively low interest payments on long - term loans, they tend to be well positioned in terms of cash flow to pursue mezzanine financing, says Don Moses, director of structured finance in the San Francisco office of Chevy Chase, Md. - based Capital Source Finance.
Our diversified portfolio includes over 100 high - quality organizations who choose to do business with Health Care REIT because the company is a trusted capital partner with unique and sophisticated structures.
It's crucial to take your time and choose wisely because the structure you select will affect everything from paying to taxes to assigning liability, from raising capital to sharing profits.