Frase del día

Todo el mundo comete errores. La clave es cometerlos cuando nadie nos ve.
Peter Drucker

Noticia. Wikileaks (Opinió Llorenç Valverde)

Experts de la UOC parlen de les filtracions de Wikileaks

com es que la informació no està encriptada?

Noticia. Wikileaks (Opinió Trina Milan)

Experts de la UOC parlen de les filtracions de Wikileaks.

Com evolucionaran impactes com el Wikileaks? Cap a la transparència d’empreses  i institucions o cap al bloqueig i un control cada cop més fort de la xarxa?


 

Frase del dia

La guerra es una masacre entre gentes que no se conocen, para provecho de gentes que si se conocen pero que no se masacran.
Paul Ambroise Valéry

 

 

Frase del dia

El que gana un combate es fuerte, el que vence antes de combatir es poderoso. La verdadera sabiduría es vencer sin combatir
Sun Tzu

In a Nutshell (VII). Finance (III)

COST OF CAPITAL

A business needs to keep track of how much it is paying for the capital it uses, as that is the minimum hurdle rate for any investment it may make.

• Cost of debt: This can be very straightforward. A company takes out a bank loan at a fixed rate of interest then this is the cost before any tax relief, usually the net cost of debt comes down initial bank interest.
• Cost of equity: is the return shareholders expect the company to earn on their money.
  • Dividend valuation model: One approach to finding the cost of equity is to take the current gross dividend yield for a company and add the expected annual growth.
  • CAPM, Capital asset pricing model: http://www.investopedia.com/terms/c/capm.asp
  • WACC, Weighted average cost of capital: http://www.investopedia.com/terms/w/wacc.asp

INVESTMENT DECISIONS

The cost of capital is an important figure as it is in essence the threshold for future investments. Categories:

• Bolt-on investments: These are where an investment will be supporting and enhancing an existing operation. Eliminating bottlenecks.
• Standalone single project: This involves a simple accept or reject decision
• Competing projects: This requires a choice of which produces the best results, either because only one can be pursued or because of limited finance.

Remember that, there may well be other strategic reasons for taking investment decisions, including those that might be more important than finance alone. 

• Payback period: http://www.investopedia.com/terms/p/paybackperiod.asp
• Net present value: http://www.investopedia.com/terms/n/npv.asp
• Discounted cash flow: http://www.investopedia.com/terms/d/dcf.asp
• Internal Rate of Return: http://www.investopedia.com/terms/i/irr.asp

Frase del dia

Nunca tengas miedo de probar cosas nuevas. Recuerda que un amateur solitario construyó el Arca, mientras que un gran grupo de profesionales construyó el Titanic
David Barry

Pel·lícula de la setmana. Capitalism: a love story

Els Americans tenen aquella idea de que el seu país es va construir amb el "somni americà", en que si un treballa dur i es honest tindrà èxit. Amb aquest documental Michel Moore es planteja com l'excés de cobdícia i l'interès d'alguns han eclipsat els ideals del país, tant en els aspectes sociopolítics com en els personals.

 

Amb el seu humor i indignació característica, es pregunta quin preu està pagant els estats units pel seu amor al capitalisme. Tota la pel·lícula gira entorn a la seva preocupació principal el desastrós impacte que tenen les grans empreses en les vides quotidianes de qualsevol...

 

 

 

Quotes:

• Michael Moore: Do you have any suggestions for me?
• Wall Street Professional: Don't make any more movies.

• Michael Moore: This is capitalism. A system of taking and giving... mostly taking.

• Rich Man: Master! What must I do to have eternal life?
• Jesus: Go forth and maximize profits.

• Michael Moore: I am here to make a citizens arrest of the board of director of AIG.

• Michael Moore: I got more bags. 10 Billion probably won't fit here.

 

Referencia: http://www.capitalismlovestory.com/

 

 

In a Nutshell (VI). Finance (II)

EQUITY

Equity, consists of the issued share capital and reserves of various kinds. It represents the amount of money that shareholders have invested directly into the company by buying shares, together with retained profits that belong to shareholders but which the company uses as additional capital.

Ordinary shares form the bulk of the shares issued by most companies and are the shares that carry the ordinary risks associated with being in business. Ordinary shares have no fixed rate of dividend.

Preference shares get their name for two reasons. First, they receive their fixed rate of dividend before ordinary shareholders. Second, in the event of a winding up of the company, any funds remaining go to repay preference share capital before any ordinary share capital.

Class A and Class B shares are cases where categories of shareholder are singled out for more or less favorable treatment.

Reserves means profits of various kinds that have been retained in the company as extra capital. Reserves come from retained profits over many years but are reinvested in buildings, equipment, stocks or company debts, just like any other source of capital, and are rarely held in cash.

SOURCES OF EQUITY CAPITAL

There are two broad sources of equity: private equity, (usually put in by individuals who for hopefully the prospects of greater returns will take on greater risks) or public capital through a share issue on a stock market.

Private equity:

• Business Angels: One likely first source of equity or risk capital will be a private individual with his or her own funds, and perhaps some knowledge of your type of business. In return for a share in the business, such investors will put in money at their own risk.
• Venture Capital: Venture capital providers are investing other people's money, ofte from pension funds. They have a different agenda from that of business angels, and are more likely to be interested in investing more money for a larger stake.
• Corporate venturing: Venture capital firms often get their hands dirty taking a hand in the management of the businesses they invest in. Another type of business is also in the risk capital business, without it necessarily being their main line of business.

Private capital preliminaries. Two important stages will be gone through before a private investor will put cash into a business.

• Due diligence: Usually, after a private equity firm signs a letter of intent to provide capital and you accept, it will conduct a due diligence investigation of both the management and the company. During this period the private equity firm will have access to all financial and other records, facilities, employees etc to investigate before finalizing the deal
• Term sheet: A term sheet is a funding offer from a capital provider. It lays out the amount of an investment and the conditions under which the new investors expect the business owners to work using their money

PUBLIC CAPITALStock markets are the place where serious businesses raise serious money.  Going public will enhance the status and credibility of your business, and it will enable you to borrow more against the ‘security’ provided by your new shareholders, should you so wish. 

Your shares will also provide an attractive way to retain and motivate key staff.

IPO: Initial public offer
AIM: Alternative Investment Market

HYBRIDS
A number of financing methods straddle the debt and equity boundary.These try to mitigate taking a bit more risk for the potential of a bit more return than would be usual with debt financing.  But they also limit the upside that might be expected from pure equity, which would retain all of any increase in value from the outset.  Mezzanine finance and convertible preference share.

GRANTS
Government agencies offer grants, effectively free or nearly free money in return for certain behaviour. Grants are constantly being introduced (and withdrawn), but there is no system that lets you know automatically. You have to keep yourself informed.


 

Frase del dia

Diciembre es uno de los meses particularmente peligrosos para especular en la Bolsa. Los otros meses peligrosos son julio, enero, septiembre, abril, noviembre, mayo, marzo, junio, octubre, agosto y también febrero
Mark Twain(1835-1910)