FIN4812 INTERNATIONAL FUND
Conducted simply by
Shahana Rishi 5115136
ChiaLi Su 5115289
Dr . Radha Sirianukul
Time Sumbitted: Drive 6th, 2012
Thai Wacoal Company Limited and Wacoal Holdings Company
Thai Wacoal Public Business Limited is definitely the manufacturer of finished garment products, composed of ladies' lingerie, ladies' coats, and kids wear products, with its primary product category focus on girl's lingerie. It is just a joint venture company between Thailand's Saha Group and Wacoal Corp. of Japan, set up in October 1, 1970.
The father or mother company, Wacoal Holdings Corp is a multinational corporation within major parts of the world such as Europe, America, and Asia. Wacoal Corp. of Japan is located in Kyoto which makes up the center of R& G and business development and caters to the Asia location, which also contains Thailand. There are 5 subsidiaries in Asia, located in Bangklo, Chonburi, Lampoon, and Prachinburi, with the development plant in Bangklo as the head office.
In October you, 1970, Thai Wacoal Community Company Limited registered with 4 , 000, 000 Baht. In 1983, it absolutely was listed as one of the company on the Stock Exchange of Thailand. It has continuously registered its capital over the years, and has now listed capital of 120 million Baht. Capital Budgeting Examination
Wacoal Holding Groups (MNC) capital budgeting differs with the simply domestic firms because: 1 ) Size of the firm
The listed capital is 120, 500, 000 Baht with the revenue of 3689 million Baht in 2011. Wacoal engages in foreign trade about 28% of their total revenue. This company protects the women nighties in buyer product/fashion industry. 2 . Use of International Capital Market
Since Wacoal Holding Organizations is a major international company it would get simpler access to capital as per when compared to Thai Wacoal Public Business because of its popularity and image worldwide. 3. International Diversification
Thai Wacoal General public Company has with alone a strong parent or guardian company which can be the Wacoal International with extensive knowledge on intercontinental market simply because they have subsidiaries in various countries. However , these products offered by the firm is a same all over the world, it is centered on the little one's wear, ladies outwear and ladies' nighties. The lack of variation in items offer could also effect the main city budgeting. 5. Exposure to Exchange Rate
Since Wacoal Holding Corp. operates in a lot of countries just like Asia, America, Europe etc ., the exchange rate risk is also excessive. 5. Contact with Country Risk
To get Thai Wacoal Public Company Limited, there is also a larger risk compared to the home-based companies due to country risk. Since govt regulations, duty, laws in other countries can affect Thailander Wacoal Open public Company Limited more directly than the domestic.
Standard Financial Summary
A firm's capital composition consists of the two debt financing and common equity funding. If we look into Thai Wacoal's general financial overview, from the year 2007 to year 2010, the total liabilities has been around 500 to six hundred million baht, but in 2011, it has rose up to about 1, 1000 million baht, which will be further more discussed inside the later matter. As for its equity, it has been quite steady for the past five years, ranging from around 5, 000 to five, 000 , 000, 000 baht.
Capital Framework: Debt Funding vs . Common Equity Financing A business's capital framework consists of debts financing and common fairness financing. Thai Wacoal's debts to collateral ratio is very low, thus we can see that it prefers to make use of equity funding over personal debt financing. There are lots of reasons to a firm's auto financing decision by looking at the pros and cons of each method.
Every time a firm selects to use financial debt financing, it might have to pay the price tag on debt, which is the interest bills. Advantage of applying debt to finance is that the interest payments could be deducted from the...