... stem from several sources: greater levels of economic returns from operations; a reduction in operating risk; less capital invested and at lower risk; lower cost of capital; and increased tax benefit. THE OPERATING CYCLE; RISK, RETURN AND OPPORTUNITIES 3 A clearer understanding of finance is required...

... of the buyout, probably thereby 56 MANAGEMENT DECISION 30,2 incorporating more non-core assets in the form of subsidiary businesses; and, second, the higher debt/equity ratios necessitating a greater fund of liquid assets for servicing such finance. Therefore the outcome of the Magnet buyout was widely viewed...