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collection policythe firms collection policy may affect also our study the higher the cost of collecting accounts obtainable the lower the bad
discounts and credit termscredit termscredit terms involve both the length of the credit time and the discount specified the terms 210 n30 means
goals of firms credit standardsthe goal of the firms credit policy is to maximize the value of such firm to complete this goal the evaluation of
credit standardsa firm may follow a stringent or a lenient credit policy the firm subsequent of a lenient credit policy tends to sell on credit to
management of account receivablein order to keep current customers and attract new ones most firms find it necessary to offer credit accounts
uncertainty and safety stocksusually requirements may not be certain and thus the firm holds safety stock to safeguard stock out casesthe safety
existence of quantity discountsrecurrently the firm is capable to take benefits of quantity discounts since these discounts affect the price per
eoq assumptionsthe basic eoq model creates the following supposition asi the demand is identified and constant over the yearii the ordering cost is
cash and marketable securities managementthe management of marketable and cash securities is single of the key areas of working capital management
importance of working capital managementthe finance manager must understand the management of working capital since of the following purposea time
determinants of working capital needsthere are few factors that determine the firms working capital needs these factors are comprehensively enclosed
conservative approach - financing current assetsan exact similar of asset life along with the life of the funds required to finance the asset may not
price - sales of goodslike where section 10 provides such the price for goods may like fixed by likei contract and one isii the manner provided
working capitala working capital or called gross working capital also refers as current assetsb net working capital refers to current assets minus
dividend ratios1 dividend per shares dps earnings to ordinary shareholders number of ordinary sharesspecify cash returns received for all share
access to capital markets and ownership structure ownership structurea dividend policy may be driven with time ownership structure as like in
shareholders expectation and growth stagegrowth stagedividend policy is likely to be influenced with firms growth stage as like a young rapidly
investment opportunity and capital structureinvestment opportunitylack of suitable investment opportunities that is so by positive returns or npv may
taxation position and profitability amp liquidityprofitability and liquiditya companys capacity to pay dividend will be determined primarily with its
legal rules - factors influencing dividenda net purchase rulestates that dividend may be paid from companys profit either past or presentb capital
drawback of stock repurchases1 high pricea company may find it not easy to repurchase shares at their recent value and price paid may be higher to
advantages of stock repurchase1 it may be seen as a true signal since repurchase may be motivated with management belief that firms shares are
stock repurchasethe company can buy back also several of its outstanding shares instead of paying cash dividends this is identified as stock
stock split and reverse splitthis is whereas a block of shares is broken down into smaller units or shares hence the number of ordinary shares rises
advantages of bonus mattera tax advantages shareholders can sell new shares and create cash in form of capital gains such