Impact Of Financial Crisis On The Capital Structure Decision Making Of Essay

Impact Of Financial Crisis On The Capital Structure Decision Making Of The Firm - Essay Example The underlying discussion has developed the reference from the literature related to the capital structure theories and the brief about the financial crisis of late 2000s. The discussion also addresses the firms’ response to the financial crisis by adjusting mix of the capital structure. Therefore, for clear assessment along with overall global assessment, capital structure adjustments of Tesco and Dell have been discussed in the report. The report also has presented alignment of the responses of the capital structures with theories. FINANCIAL CRISIS Financial crisis have always been the dominant factor for determining trends and practices in the economic scenario. A financial crisis traces the reasoning from the excessive loans such as sub-prime mortgages as well as financial instrument of debt derived from such loans (Mizen 2008). Crisis originated from US in late 2000s spread across Europe and then to world owing to the benefit of diversification that businesses attempted t o gain from spreading risk across local and international markets (Fosberg, 2010). First strong hit from financial crisis and its intensity was revealed in late 2007 upon the Bear Stearns’ declaration about evaporation of the value of major assets held by Bear Stearns’s hedge funds. ... ct of financial crisis then resulted in continuity as Fannie Mae and Freddie Mac declared bankruptcy in third quarter beginning of 2008 followed by government takeover. Similar month also witnessed another major shock from financial crisis as Lehman Brothers declared bankrupt and immediately next day another giant AIG ended up receiving $85 billion credit facility from NY Fed to sustain. Efforts to sustain the steep fall of the financial stability of bank and institutions Troubled Asset Relief Program (TARP) was launched (Fosberg, 2010). TARP performance has also been bringing losses to treasury as TARP invested US $25 million in the bank while managed to fetch only US $13.5 million on sale of preferred stock of invested in financial institutions. TARP is also actively making efforts in closing down its program for banks though it still held the share for 199 banks (Sparshott, 2013). Being international firms, all these apart from impact on local financial market had detrimental impa ct on the international financial markets and hence international firms locally. Estimation of the reasons of the financial crisis, other than the core reason of subprime loans backed by subprime mortgages, has been found many. Such as among various factors discussed for fact has been the claim to the performance of respective roles of asymmetric information etc (Miglo, 2010). Further, another core factor along with dominant role of agency problem mounted the issue. Agency problems’ role was initially ignored to be addressed for the level of attention required (Miglo, 2010). In addition to these, role of already stressed factors such as taxes and bankruptcy cost in capital structure theories were receiving less attention in operational practices and hence contributed to the financial

Protein Diet in Athletes Essay Example | Topics and Well Written Essays - 500 words

Protein Diet in Athletes - Essay Example The muscle growth depends on the balance between protein synthesis (anabolism) and protein breakdown (catabolism). Exercise affects this balance and for activities that cause muscle hypertrophy, the anabolic process must exceed the catabolic process. In highly physically active individuals, proteins enhance nitrogen retention and prevent protein catabolism during prolonged exercise. Besides, they prevent sports anemia and resynthesize muscle glycogen after exercise. The balance between anabolic and catabolic processes in the body can be determined by the essential amino acid, leucine. A positive leucine balance indicates the presence of the acid in the cells that favor protein anabolism. Decrease in amino acid availability due to low protein intake increases muscle protein catabolism while increased amino acid availability stimulates muscle protein synthesis and greater muscle anabolism. Hormones such as insulin and testosterone also play a role in muscle protein synthesis and hypert rophy. After exercise, insulin inhibits further muscle protein breakdown, and when small amounts of amino acids are ingested with carbohydrates, transient muscle protein anabolism occurs since carbohydrates restore supply. Amino acid supplementation and impact the athlete’s performance No consensus has been reached on the role of amino acid supplementation on athlete’s performance. Williams (2005) noted that when branched-chain amino acids (BCAA) supplementation is used before and after exercise.