That paper suggested companies shouldn't think of their capital structures as fixed--say 40% debt, 60% equity.
The value of EV lies in its ability to compare companies with different capital structures.
"Shareholder voting power in more traditional capital structures affords shareholder considerable protection against these situations, " he said.
Only then will we provide a level playing field for management and investors when considering different capital structures and investment strategies.
At low-coupon, high-discount junk bonds of good businesses with wrong capital structures, downgraded in the market because they are loaded with junk debt.
Airlines and aerospace companies need to constantly adjust their capital structures.
There are certain industries that should not have leveraged capital structures.
Comparative ratios demonstrate nicely how EV works better than market cap for assessing companies with differing debt or cash levels or, in other words, differing capital structures.
It attempts to minimize the subordinated risk by looking for borrowers that have conservative capital structures, generate a steady stream of cash and are run by experienced managers with big ownership stakes.
The next year the bond market roared back to life with a boost from the Federal Reserve, which allowed firms marred by bad capital structures to refinance billions in debt maturing by 2014 that was otherwise facing restructuring.
Investment leads to capital accumulation, most capital is structures and structures are created using construction.
There is machinery, but far and away most capital is structures.
The new Basel rules are rightly designed to ensure bank capital and liquidity structures better reflect risks and reduce the systemic exposure for taxpayers.
"Most of these buildings are fun to see as they have their own distinct look, " says Kawabata Hiroya, author of a guide to the capital's structures, Architecture Map Tokyo.
The Bank of England and FDIC also want big banks to hold enough capital and debt that could be converted into capital at the apex of their complicated corporate structures, so that this capital and debt could absorb any losses that would be generated as the bank is resolved or made safe.
In Colombo, the capital, various swanky structures are rising and the ground has been cleared for a lotus-shaped tower intended to be South Asia's tallest.
ECONOMIST: In Sri Lanka the grip of the Rajapaksas only tightens
The totality of these changes has the potential to compel much-needed upheaval in Israel's capital markets, regulatory structures, and perhaps even the nation's very view of itself.
That meant banks had to drop the old partnership structures and raise new capital, going public in the process.
ECONOMIST: The unintended consequences of past financial reforms
To shield themselves temporarily from the volatility in financial markets, those with weaker financial structures may need some form of capital controls, preferably market-based.
They all have generally favorable demographic profiles, lower absolute levels of national debt, manageable debt term structures, and many other positive economic and capital market factors.
But they also reveal Bulfinch's own prophetic sense of the massive volumes of space and stone that would define later neoclassicism, exemplified in the structures designed by Robert Mills for the nation's capital and in the South.
We recognize some forward-looking drags on growth from the reduced use of securitizations, mortgage structures and SIVs, but this may be offset by a better allocation of capital.
Enter Ibrahim Mardam-Bey, now chief executive of Siraj Capital but then an adviser to Lebanon's BSEC, an investment bank specializing in sharia-compliant structures.
The support base for this revolution was not the capital, Tbilisi, the traditional driver of Georgian politics, but villages and small towns, where family structures and individualism were stronger and Soviet rule was weaker.
The question is whether the best practices in terms of management tools, organisational structures and cultural changes devised by successful firms can be cloned and applied to mature, capital-intensive industries.
But the transition periods are generous: banks have until 2019 to put the new structures in place, and lenders seem confident that they can get there without having to raise extra capital.
应用推荐