acquiring either a cash flow‚ an asset‚ or a contract (e.g.‚ a forward contract) that will rise (fall) in value and offset a fall (rise) in the value of an existing position While hedging can protect the owner of an asset from a loss‚ it also eliminates any gains from an increase in the value of that asset. A major motive for firms to hedge is to increase the present value of firms. The value of a firm is the present value of all expected future cash flows in the future. For expected cash flows with
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journal-------------------------------------------------------------------------- 18 * Returns outwards journal--------------------------------------------------------- 19 * Returns inwards journal----------------------------------------------------------- 20 * Cash book----------------------------------------------------------------------------- 21 Ledgers: * Purchases ledger------------------------------------------------------------------- 22 * Sales ledger--------------------------------------------------------------------------
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Introduction: This cash management report will analyze and interprets the trends for a business called “SERENA’S WORLD OF SHOES“ financial performance in terms of liquidity and efficiency with which it will focus on the assets and liabilities of the business. This report will describe the trends‚ causes of these trends and strategies for improvement with the help of various analytical tools. Findings Liquidity Liquidity analytical ratios (Key performance indicators) 2011 2012 Working
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liquidity are internally generated cash flows‚ the Company’s debt and revolving credit facilities‚ and the sale of trade accounts receivables. The Company’s liquidity and capital requirements are primarily a function of its working capital needs‚ capital expenditures‚ and debt service requirements. The Company has the following transactions that need to be analyzed under ASC 230‚ Statement of Cash Flows (FASB Statement No. 95‚ Statement of Cash Flows). 1. Insurance Settlement
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Introduction: Aspen is a software company which was established in 1982. The company mainly provides simulation solutions to process manufacturing companies. The main industry which the company focuses on is chemical processing. The entire idea began with the project of Advanced System for Process Engineering in MIT in 1976. This project was than acquired by Lawrence Evans whom founded Aspen. In a very short amount of time Aspen became a major player in the simulation part of the software industry
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million in revenues and holds a large selection of SKU’s of around 50 third party brands. They held cash reserves of $ 300‚000 at all times to meet its operational needs. They have a credit line facility with a limit of $ 3‚200‚000 with 8% interest rate. The cost of capital for SNC is 12%. PHASE I In phase 1‚ The Company was provided with 4 opportunities to maximise their growth and to improve cash flow Option 1: Acquire a new customer With the acquisition of a new customer the company’s sales will
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INTRODUCTION to E-cash payment system With the onset of the Information Age‚ our nation is becoming increasingly dependent upon network communications. Computer-based technology is significantly impacting our ability to access‚ store‚ and distribute information. Among the most important uses of this technology is electronic commerce: performing financial transactions via electronic information exchanged over telecommunications lines. Most electronic commerce involves the exchange of money for
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100% (15 out of 15 correct) | Responses to questions are indicated by the symbol. | | | 1. | An SSU’s A. | income and expenditures for the period are equal. | B. | income for the period exceeds expenditures. | C. | expenditures for the period exceed receipts. | D. | spending is entirely financed by credit cards | A surplus position is when income for the period exceeds planned expenditures. (see page 7). | | 2. | Which of the following is an example of indirect financing
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MULTINATIONAL FINANCIAL MANAGEMENT Groupe 5 Case study ASPEN TECHNOLOGY INC.: Currency Hedging Review 1) What are Aspen Technology’s main exchange rate exposures? How does Aspen Tech’s business strategy give rise to these exposures as well as to the firm’s financing need? The main exchange rates exposures are: British pounds‚ Deutsch Mark‚ Japanese Yen and Belgian Francs. Aspen faces foreign currency risks due to sales and expenses in those foreign currencies. Expenses include R&D costs (20%
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1997 International Risk Insurers Lagos ABRIV NIG LTD Responsibilities/duties • Summarized all credit purchases‚ credit sales staff debtors and bank loans. • All inventory/goods in transit. • Analysis of petty cash expenses‚ other cash payments (cash purchases). • Bank deposits/identifying non sales deposits. • Drawing up a bank control Account. • Attends to all queries that affect the accounts department. • Direct control of the
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