Corporate Finance Essay Example | Topics and Well Written Essays - 500 words - 6

Corporate Finance - Essay Example Due to recessionary conditions and down side of economy, there is no immediate chance of recovery. Accordingly, Qantas Airways, which has leveraged beta of 1.25 is certainly a more risky company compared to any other company in the table. Above table suggests that business risks associated are lowest with Telstra Corp. and Coca Cola companies for having lowest beta of 0.16 and 0.15 respectively. Highest business risks are associated with BHP Billiton and Rio Tinto with beta of 0.52 and 0.43 respectively. As table indicates for the companies where finance risks are low (like CSL and BHP Billiton), business risk is high and the companies with high finance risk (like Coca-Cola and Telstra), business risk is low. Thus when we compare business risk with finance risk, we find that both are not consistent. Further, comparing the figures of shareholder’s return of BHP Billiton and Coca Cola, we find that both have given almost same returns; however, there is a vast difference between their business risks and financial risks profiles. Obviously, they are following Modigliani and Miller theorem that value of the companies are independent of its capital structure. 3. BHP Billiton and Rio Tinto though belong to the same industry sector; they have vastly different debt-equity ratios. Rio Tinto is a high leveraged company and its return on equity in percentage terms is less than that of BHP Billiton, which indicates that servicing cost of debt lowers down the percentage return on equity. In other words we can say that higher leveraging does not bring any additional return to the equity holders. Total shareholder’s return too in case of Rio Tinto is only slightly less compared to that of BHP Billiton’s shareholder’s return. Despite large percentage difference in return on equity, there is not a proportionate difference on the value of total shareholders return. In short, above set of Australian companies do not seem to

Problems encouter by patients without health insurance in America Essay

Problems encouter by patients without health insurance in America - Essay Example Nearly 46 million people living in the United States are uninsured, majority of them of color, are likelihood of not receiving medical advice that they cannot afford and it is a reality. As per the survey conducted by The Commonwealth Fund, a private foundation that works to advance health care quality and insurance coverage, national health care spending is growing at a rate of 7% per year that is faster than the U.S. economy. There are 16 million American people who are considered underinsured and many people who are unable to pay for these rising rates will become one of them or they will join the ranks of the uninsured. As per the Kaiser Family Foundation reports 40% of uninsured adults do not have a regular primary health care checks. That means no annual physicals or other preventive care. Consequently, many uninsured patients are ignorant that they have a medical problem until they have an emergency situation. Tribal and ethnic minorities are overly affected by the absence of health care coverage. A report by the U.S. Census Bureau 2004, discloses that almost one third of Hispanics, 20% of African Americans, 29% of American Indians/Alaska Natives and 17% of Asians lack health insurance. These facts indicate that there is a substantial portion of population lacks adequate health insurance or has no coverage at all. Health care is a mounting problem in the United States. Medicine has developed great ways to deal with many of the problems, but the treatments are not cheap and the combination of improved life expectation and an enormous growth in the population of the United States has increased health care costs very high.