Debt

FCF to net debt change € mln FY 2008 1,182 194 48 46 FY 2009 1,427 899 2,977 100 (148) Free cash flow from operations Net proceeds from business disposals Shares issued Options exercised, preferential rights Business combinations and other investments, net of cash (258) and cash equivalents acquired Change in long term loans and other long-term assets Dividends paid in cash Unwinding of the hedging transactions Change in net debt Non cash items included in net debt Scope and FX

indebtedness reached € 6,309 millions, what represents 60% of its owner’s equity. This ratio - enters other - is used by financial analysts and the agencies of financial notation to judge the solvency of a company. It corresponds simply to the net debt (debt less available finance) divided by stockholders' equities (own capital). It is collectively allowed that a 100 % ratio is a ceiling which It should not to be exceeded by most of the companies. For comparison and to illustrate the decrease of the

effect of both earnings management and beating earnings benchmarks on the cost of debt. Based on a sample of 380 American firms (selected from Fortune 1000), for the period 1996-2004, our results show that discretionary accruals provide additional information to creditors about the financial situation of the firm. Specifically, firms with extreme positive and negative discretionary accruals incur a higher cost of debt because these firms are more likely to experience future financial distress than

problem. We find, that incentive payments to the rating agency based on expected returns on debt will do away with the moral hazard problem. JEL Classification No. G140, G200, G290 Key Words: Credit Rating, Information Production, Moral Hazard. 1 Introduction Rating agencies are unique because, the users of their services do not pay directly for the information. Credit rating agencies evaluate and rate debt instruments. They publish ratings on the riskiness of such instruments. The firm, whose

rate(facture à recevoir) ✓ Net sales /average accounts receivable =resultat net/ moyenne facture à recevoir =3 727/ ?? 2) Measures of long-term credit risk ➢ Debt ratio(ratio des dettes) ✓ =Total liabilities/total assets =33 649/ 55 719 =0.6 |Ratio de liquidité immédiate : (liquidité/dettes à CT), toutes

for them. * Even though it was eventually decided that top-up fees would be capped at 3.000 pounds, they are severely blamed as debt among students. Cash-strapped students now have little choice but to get into massive debt. Even if they can pay back their debt after having graduated, an increasing number of students are deterred from graduating with substantial debt. They even think that it is not worth going to university and prefer to apprentice in firms, to volunteer or to enter into working

assessment and closer and more frequent dialogue | |between countries and private investors. Dialogue can also foster greater private sector involvement in the resolution of crises when they| |do occur, including through the restructuring of private debt, benefiting both creditors and debtors. | |And the involvement of the private sector in crisis prevention and resolution should help limit "moral hazard"—that is, the possibility | |that the private sector may

Greece 5 3.1. The causes of the crisis 6 3.2. The current situation 7 4. The political and economic impact of the Greek economic crisis on the Euro-zone 8 5. Conclusion 10 6. Bibliography 11 1. Introduction In early 2010 sovereign debt crisis affected several countries located in Europe. The countries situated in the Euro-zone were called PIIGS, a grouping acronym used by some economists in order to refer to the following five countries; Portugal, Italy, Ireland, Greece, and Spain

on institutions that are similar to slavery and should be abolished, such as debt bondage, domestic labour, forced marriage, child labour, etc. 2. Categories of slave labour Anti-Slavery International lists six types of modern slavery: Bonded labour: Bonded labour (or debt bondage) is an arrangement whereby a person is forced to pay off a loan with direct labour in place of currency. To repay the debt, many bonded labourers are forced to work long hours, seven days a week, up

to lose a lot of money, so banks securitized those properties. They transformed them into that can be sold in stock exchange Afterwards, they resold them to other banks all over the world. Suddenly banks realized that they held worthless debt, as they don’t know where this debts came from, they have lost confidence and didn’t want to lend money any more to each other. This has caused a decrease in the activity of the financial sector. The duration of this crisis has caused a decline