Previous Page | Back to Main Index | Next Page

PART VI: THE COST OF CAPITAL, CAPITAL STRUCTURE, AND DIVIDEND POLICY

Link-sets

Breakeven Analysis Business Classification Code

WACC: Practical Guide

• "After the Revolution" This July 1998 CFO Magazine article revisiits the Modigliani and Miller (M&M) propositions concerning the value of the firm and its capital structure.
  http://www.cfo.com/article.cfm/2987574
• Breakeven Analysis Web Sites
  1. Breakeven Analysis Applet. Calculates a firm's breakeven point.
     http://www.stfrancis.edu/ba/ghkickul/btools/bkeven/index.htm
  2. Breakeven Calculator. Cool interactive breakeven calculator courtesy of KJE Computer Solutions.
     http://www.dinkytown.com/java/BreakEven.html
  3. The HBS Toolkit: Break-Even Analysis. Downloadable interactive workbook from the HBS Toolkit helps calculate a break-even point or target-profit level based on the fixed costs, variable costs, and unit price of the product or service being analyzed.
     http://hbswk.hbs.edu/item.jhtml?id=1262&t=finance
  4. The SOHO Guidebook -- Breakeven Analysis. A discussion of breakeven analysis as a tool for management decision making.
     http://www.toolkit.cch.com/text/P06_7530.asp
  5. TANRO|Break Even Analysis. "Cool" online Business Simulation introduces you to Break-Even Analysis. You play the role of a beginning finance professional in a fictitious lawnmowing manufacturer named Tanro who has to help make critical business decisions. Along the way you will learn some basic break-even financial fundamentals through an interactive experience.
     http://www.knowledgedynamics.com/demos/Breakeven/index.htm
• Business Classification Code Web Sites
  1. "Ask Alice About Business Classification Codes". CCH Business Owner's Toolkit's online advice columnist, Alice Magos, does a great job in explaining SIC and NAICS codes. Also visit "Ask Alice!" Archive for other excellent business columns.
     http://www.toolkit.cch.com/advice/200-99askalice.asp
  2. NAICS Association. Provides a collection of NAICS (pronounced "nakes") and SIC products, information, and resources.
     http://www.naics.com/
  3. NAICS -- North American Industry Classification System. NAICS replaces the U.S. Standard Industrial Classification (SIC) system.
     http://www.census.gov/pub/epcd/www/naics.html ftp://ftp.census.gov/pub/epcd/www/naics.html
• Cost of Capital Resources. Morningstar provides (for a fee) cost of capital analysis. Take a look at this site to learn more about the type of detailed information that they provide.
  http://corporate.morningstar.com/ib/asp/subject.aspx?xmlfile=1422.xml
• "Debt Maturity: What Do Economists say? What Do CFOs Say?". Federal Reserve Bank of Philadelphia article discusses recent theories of how firms choose their debt maturity.
  http://www.philadelphiafed.org/research-and-data/publications/business-review/2006/q1/Q1_06_DebtMaturity.pdf
• "Declaration, Ex-dividend, and Record Date Defined". Nice article on some of the procedural aspects of dividend policy courtesy of the folks at Investopedia.com.
  http://www.investopedia.com/articles/02/110802.asp
• DirectInvesting.com. Information on Direct Investment Plans, also known as dividend reinvestment plans (DRPs or DRIPs).
  http://www.directinvesting.com/
• DRIP Investor. Brings you the latest information on Dividend Reinvestment Plans (DRIPs).
  http://www.dripinvestor.com/
• Fundamental Analysis 101: Zooming in on Net Operating Income. Nice tutorial on Net Operating Income (NOI), which sometimes goes by the name of NOPAT (net operating profit after taxes) or NOPLAT (net operating profit less adjusted taxes).
  http://www.investopedia.com/articles/fundamental/101602.asp
• Guide to Direct Investment Plans. Learn about DRPs, DRIPs, and DSPPs.
  http://www.guidetodrips.com/
• "How Do CFOs Make Capital Budgeting and Capital Structure Decisions?". Compressed version of a paper that won the Jensen prize for the best JFE paper in corporate finance in 2001.
  http://faculty.fuqua.duke.edu/~charvey/Research/Published_Papers/P76_How_do_CFOs.pdf
• Investing Through DRIPs. Dividend Reinvestment Plan (DRIP) tutorial courtesy of The Motley Fool.
  http://www.fool.com/school/Drips.htm
• Online Tutorial #8: How Do You Calculate A Company's Cost of Capital? One of a series of online tutorials and downloadable spreadsheets to supplement the book "Expectations Investing" by Rappaport and Mauboussin.
  http://www.expectationsinvesting.com/tutorial8.shtml
• That's WACC!. Online WACC calculator. Enter the ticker symbol for any publicly traded stock and get an estimate of the firm's Weighted Average Cost of Capital (WACC).
  http://thatswacc.com/
• WACC: Practical Guide for Strategic Decision Making
  Excellent 8-part series discusses the weighted-average cost of capital (WACC) from different perspectives and highlights strategies to optimize capital structure and maximize shareholder value. Courtesy of Zanders (a consultancy).
  1. Is Estimating the WACC Like Interpreting a Piece of Art?
     http://www.zanders.nl/publicaties/documents/WACC_part1.pdf
  2. Creating Shareholder Value -- Towards an Optimal Credit Rating!
     http://www.zanders.nl/publicaties/documents/WACCpart2.pdf
  3. Hybrids, Expensive Debt or Cheap Equity?
     http://www.zanders.nl/publicaties/documents/WACCpart3.pdf
  4. The Impact of Corporate Risk Management on Shareholder Value
     http://www.zanders.nl/publicaties/documents/WACCpart4.pdf
  5. Project Selection -- How to Choose the Right Project and Make Effective Comparisons
     http://www.zanders.nl/publicaties/documents/WACCpart5.pdf
  6. Estimating the WACC in Emerging Markets -- The Challenges
     http://www.zanders.nl/publicaties/documents/WACCpart6.pdf
  7. Keep Track of Your Company's Valuation Gap!
     http://www.zanders.nl/publicaties/documents/WACCpart7.pdf
  8. Increasing Shareholder Value by Utilizing Tax Opportunities
     http://www.zanders.nl/publicaties/documents/WACCpart8.pdf
• What are stock splits? The Motley Fool provides a detailed answer to this FAQ.
  http://www.fool.com/FoolFAQ/FoolFAQ0035.htm

Previous Page | Back to Main Index | Next Page