Question 2 Analyze the cracking structure of Samsung Electronics. oppose it with the capital structure of a company in the equivalent tune of business (primarily manufacture of chips) from another developed demesne and translation on the differences. SAMSUNG ELECTRONICS (KRW billion) SE parent companySE consolidateSamsung group Years199719981999199719981999199719981999 Assets23,06619,87624,71032,03524,10529,178187,824109,022133,213 Liabilities17,23613,80611,37827,38619,01616,004162,12089,839101,023 Shareholders loveliness5,8306,07013,3324,6495,08913,17425,70419,18332,190 Debt to legality295,64%227,45%85,34%589,07%373,67%121,48%630,72%468,33%313,83% Samsung Electronics is highly leveraged. It is mostly financed by debt which makes it a very risky company. This is part due to the Korean culture of adding money intensively. still from 1997 to 1999, the debt to equity symmetry dropped from 589.07% to 121.48% (by 80%) for the unify company. Compared to th e whole group with a debt to equity ratio, that also fell from 630.72% to 313.83% (around 50%). whence Samsung Electronics is less leveraged, still still very leverage memorise to ordinary companies.
For Samsung Electronics, the come of the debt to equity ratio is due to: - a drop of the innate liabilities: the Asian crisis started, banks companies had to restructure their capital in order to daring the market. Banks were also more reluctant to lend money. - an increase of the shareholders equity: Samsung Electronics shareholders equity almost triple in 3 years We chose to compare Samsung Electronics capita l structure with Intels capital structure. I! ntel is an American company, the largest semiconductor chip maker in the world by revenue. INTEL consolidated (USD million) 199719981999 Assets28,88031,47143,849 Liabilities9,5858,13411,314 Shareholders equity19,29523,33732,535 Debt to equity49,68%34,85%34,77% For the...If you want to get a blanket(a) essay, order it on our website: BestEssayCheap.com
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