Debt finance and profitability of a business firm - case study of ABC transport plc Department: Banking and Finance By: samadchuks Project ID: 5442 Rating: (5.0) votes: 1Rate this project12345 Price:₦3000 Get the Complete MaterialAbstractThis research examines Debt Finance and Profitability of a Business Firm with a case study of ABC Transport Plc in Nigeria from 2000-2015 with the purpose of providing a critical appraisal of the need and importance of debt finance and profitability of a business firm. Descriptive and regression research technique was employed to consider the impact of some key variables such as returns on asset (ROA), returns on equity (ROE), total debt to total asset (TD) total debt to equity ratio (DE) on firm performance. Secondary data was employed using data derived from some selected transport companies in Owerri Imo State. From our findings, we observe that debt financing measures (total debt and total asset ratio and total debt to total equity ratio) are negatively related to firm performance. It is hereby recommended that firms should use more equity than debt in financing their business activities, in as much as the value of a business can be enhanced using debt capital. Hence firms should establish the point at which the weighted average cost of capital is minimal and maintain that gearing ratio so that the company’s value will not be eroded, as the firm’s capital structure is optimal at this point ceteris paribus. ...Preview Download Preview +Other Banking and Finance project topics and materials you might be interested in»The role of central bank of Nigeria (CBN) in the development of Nigeria financial sector»Appraisal of the economic implication of electronic banking in Nigerian banks (A case study of diamond bank)»The impact of strategic planning on banks performance in Nigeria (A case study of united bank for Africa plc)»Evaluation of the impact of liquidity management on banks performance in Nigeria ( A case study of UBA )»The roles of central bank of Nigeria in the prevention of bank failure or liquidation (A case study of central bank of Nigeria 2005-2009)»The role of financial institutions in promoting banking habit and saving capital formation in Nigeria»The effect of electronic banking on fraud reduction in bank (A case study of access bank plc)»The effectiveness of monetary policy measures in controlling inflation in Nigeria»Problems and challenges facing finance houses in the Nigerian economy ( A case study of mortgage bank owerri )»The role of deposit money bank in Nigeria in economy development in Nigeria - a case study of Access Bank Plc»Motivation as a way of reducing fraud in banking industry ( A case study of UBA and Fidelity bank )»The impact of insurance industry on the economic growth of Nigeria (A case study of nicon and hallmark insurance companies 2005-2009)»Identification and management of bad debts in Nigeria commercial banks(A case study of UBA plc)»The contribution and effect of computer to modern day banking in Nigeria (A case study of zenith bank and first bank plc)»The use of accounting information in assessing control and performance in an organization (A case study of first bank of Nigeria owerri)