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calculation of before-tax return on capital employedtotal net before-tax cash flow 122 143 187 78 530000total depreciation 250000 - 5000
when considering how working capital is funding it is useful to divide assets into permanent current assets noncurrent assets and fluctuating current
preferably all customers will settle within the agreed terms of trade if this doesnt happen a company needs to have in place agreed procedures for
q credit control - account receivable managementonce credit has been established it is important to review outstanding accounts on a regular basis so
credit analysisassessment of creditworthiness depends on the examination of information relating to the new customer this information is frequently
q define policy formulation - accounts receivable managementthis is concerned with set up the framework within which management of accounts
determination of spreaddaily interest rate 511 365 0014 per dayvariance of cash flows 1000 times 1000 1000000 per daytransaction cost 18 per
q define a currency futures contracta currency futures contract is a standardised contract for the buying or else selling of a specified quantity of
evaluation of money-market hedgeexpected receipt after 3 months 300000dollar interest rate over three months 54 4 135dollars to borrow now to have
forward market evaluationnet receipt in 1 month 240000 - 140000 100000nedwen co requires to sell dollars at an exchange rate of 17829 0003 17832
q changes in exchange ratesthe law of one price proposed that identical goods selling in different countries should sell at the same price and that
q what do you mean by economic risktransaction risk is appears as the short-term manifestation of economic risk which could be defined as the risk of
q what is translation riskthis risk occurs on consolidation of financial statements prior to reporting financial results and for this reason is as
q show the transaction riskthis is the risk occur on short-term foreign currency transactions that the actual income or cost may be different from
q determine earnings per sharecurrent earnings per share 100 times 4550 - 225 5000 865 centsearnings per share after one year 100 times 4508 - 225
q observation of capital structuredroxfol co has long-term funding provided by ordinary shares preference shares and loan notes the rate of return
q what are sources of financeno details are specified concerning the nature of a business to comment on and hence only general recommendations can be
q describe factors to analyze a company position- venture capitalists may be involved in the business because of its significant growth but poorly
company capacity to continue tradinggiven the preceding discussion it is unlikely that the business can continue in its current form the trading
analysis of company positionassociated international supplies ltdcirculation associated international supplies ltd ais ltdauthor a consultant axy
q illustrate dividend valuation modelthe business is being acquired as a going concern and earnings valuations rather than asset valuations are
q report on the valuation of endessideally the valuation must be based upon the present value of incremental cash flows that result from the buy-in
q benefits of interest rate swapsinterest rate swaps may provide several benefits to companies including- the ability to get finance at a cheaper
interest rate caps as well as collars are available on the over the counter otc market or may be devised using market based interest rate options
q what are the financing methods- the export transaction could be correlated to a bill of exchange if this bill was established guaranteed by the