Name: Hafsah Class: Lower 6 Subject: Business studies Sources of Finance * Why do businesses need finance? * Types of finance * Internal sources of finance * External sources of finance * Factors to be considered when choosing sources of finance Sources of finance Finance: Finance is the study of how investors allocate their assets over time under conditions of certainty and uncertainty. A key point in finance‚ which affects decisions‚ is the time value of money
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this chapter is likely to be at best a refresher.1 This chapter covers • Net present value (NPV) • Internal rate of return (IRR) • Payment schedules and loan tables • Future value • Pension and accumulation problems • Continuously compounded interest Almost all fi nancial problems center on fi nding the value today of a series of cash receipts over time. The cash receipts (or cash fl ows‚ as we will call them) may be certain or uncertain. The present value of a cash fl ow CFt anticipated
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statement include interest expenses? Explain. Should the $262‚500 test marketing cost be included in the analysis? Explain. The cash flow statement should not include interest expense or dividends. The return required by the investors furnishing the capital is accounted for in the 12 percent cost of capital (WACC) used to discount the cash flows‚ therefore including interest expense and also discounting would be "double counting." Put another way‚ if we both subtracted interest (and dividends) and
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The company financed its new plant from a long-term mortgage loan from an insurance company which bears a fixed interest rate of 13% for 20 years. The interest rate is dollar denominated and thus might result in the company paying more in terms of pesos if the peso depreciates in value. By 1998‚ The Company could also take a bank loan of 4.8 million pesos at floating interest rate. The company was out of bank debt‚ but still the CFO sent in a loan note thereby exceeded its borrowing limits
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Journal of Emerging Trends in Economics and Management Sciences (JETEMS) 3(6): 882-886 © Scholarlink Research Institute Journals‚ 2012 (ISSN: 2141-7024 jetems.scholarlinkresearch.org Economics and Management Sciences (JETEMS) 3(6):882-886 (ISSN:2141-7024) Journal of Emerging Trends in Insights on Non-Performing Loans: Evidence from Zimbabwean Commercial Banks in a Dollarised Environment (2009-2012) 1 Laurine Chikoko‚ 2Tendekayi Mutambanadzo and 3Takaiona Vhimisai 1 Department of Banking and Finance
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Chapter 01 Introduction 1.1 Foundation of the Report: MBA program of University of Dhaka‚ Department of Accounting and Information Systems is organized and tailored to provide the students with the conceptual‚ theoretical and practical tools of analyses. Special stresses are given on theory and practice them under an organization. Therefore‚ as an internee I have completed my practice session and prepared this required report based on investigations carried out by me in National Bank Limited (NBL)
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1.0 INTRODUCTION 1.1 Origin of the Report Internship program is a prerequisite for EMBA program. Before completion of the degree‚ a student must undergo the internship program. Internship program is a perfect blend of the theoretical and practical knowledge. As the classroom discussion alone cannot make a student perfect in handling the real business situation‚ therefore it is an opportunity for the students to know about real life situation through this program. This program consists of
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ABSTRACT Telecommunication industry becomes popular from years to years in Cambodia‚ a small country with more than 14 million people. Currently there are 8 operators of telecom company operating in Cambodia such as Latelz Co. Ltd. Metfone‚ Mobitel‚ Hello‚ Beeline‚ qb‚ Mfone‚ and Excel. In July‚ Latelz Co.‚ Ltd. which are known as Smart Mobile is under number 2 in the telecom market in terms of subscribers. Latelz Co.‚ Ltd. is selected to be our place for writing Senior Project Report of Analysis
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860)TOTAL LIABILITIES AND SHAREHOLDERS EQUITY$ 7‚835‚730As stipulated‚ your company is having financial difficulty and has asked the bank to restructure its $3million note outstanding. The present note has three years remaining and pays a current interest rate of10%. The present market rate for a loan of this nature is 12%. The note was issued at its face value. Thebank agrees to accept land in exchange for relinquishing its claim on this note. The land has a bookvalue of $1‚950‚000 and a fair value
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card debt leads to bankruptcy A. Using a credit card to purchase something at a store you are not just paying for the cost of the product but also the interest rate. 1.This depends on how much interest is being charged every month 2. This increases the cost of everything you buy B. If you pay only the minimum amount every month the interest gets charged and this increases the cost of everything purchased C. To lower credit card debt 1. take advantage of cards that offer lower introductory
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