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q explain short- and long-term financing mixin forming a fresh business there is no business history to present to the bank thus there is additional
q just-in-time inventory managementit considerably improves the short-term liquidity of the business with a maximum financing requirement of 138533
q consequence of the cash operating cyclethe cash operating cycle is the length of time among paying trade payables and receiving cash from
the approaches that blin could accept regarding the relative proportions of long- and short-term finance to meet its working capital needs have been
q yield curve - influence the rate of interestthe normal yield curve demonstrates that the yield required on debt increases in line with the term to
q security offered - influence the rate of interest the rate of interest charged on the loan will be lesser if the debt is secured against an
q risk of default influence the rate of interestthe bank offering the loan to blin will make an assessment of the risk that the company might default
q objectives of working capital managementthe objectives of working capital management are habitually stated to be profitability and liquidity these
q process of financing working capitalworking capital policies on the process of financing working capital can be characterised as moderate
q benefits of the proposed policy changeshort-term sources of debt finance comprise overdrafts and short-term loans an overdraft offers elasticity
q explain about invoice discountinginvoice discounting is a technique which is able to be used to raise finance against receivablesinvoice
q illustrate report on net present valuethe npv of a project is a positive 56000 this point to that using our cost of capital 10 as our discount
q illustrate report on cash flow budgetthe cash flowsthe principal reason why certain statistics were not included in the cash flows is that they are
undertake a critical review of the current academic literature to determine the reasons for benefits of and the costs to companies of cross
explain hard capital rationing and soft capital rationing the npv decision rule to admit all projects with a positive net present value requires the
the npv decision rule needs that a company invest in all projects that have a positive net present value this presumes that sufficient funds are
reportto the directors of leaminger plcfrom a business advisordate december 2002subject acquiring the turbine machineintroductionin financial terms
discounted cash flow analysis is the term employ to describe the technique whereby the value of future cash flows is discounted back to a present
the drawbacks of the payback approach are as follows- payback ignores the overall profitability of a project by ignoring post payback cash flows in
arr and paybacka accounting rate of return arr is a computation of the return on an investment where the annual profit prior to interest and tax is
ratiosa great number of ratios might be appropriate for this purpose depending on the specific kind of financial performance which is being compared
government interventionthe government might look for intervene in the take-over bid because of fears that the market share of the combined group
additional information requiredspecification of a time scale for the evaluation predict cash flow details year by year for period specified in the
chromex plcpayback periodpayback period must be based on cash flows that is the cash generated from operations and the capital invested by chromex
memorandummemo to blackwater plc main boardsubject proposed pollution control projectfrom lower down the hierarchydate thatll be the dayon purely