ALTERNATIVE FINANCING PLANS Current assets – permanent current assets = temporary current assets $800‚000 – $350‚000 = $450‚000 Short-term interest expense = 5% [$450‚000 + ½ ($350‚000)] = 5% ($625‚000) = $31‚250 Long-term interest expense = 10% [$600‚000 + ½ ($350‚000)] = 10% ($775‚000) = $77‚500 Total interest expense = $31‚250 + $77‚500 = $108‚750 Earnings before interest and taxes $200‚000 Interest expense 108‚750 Earnings before taxes $ 91‚250 Taxes
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[pic] [pic] Course code: F-201 Course title: Financial accounting -2 Submitted to: Tahmina Akter Lecturer Department of Finance University of Dhaka Submitted by: |Name | |
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Sources of Agriculture Financing Financing is needed to start a business and ramp it up to profitability. There are several sources to consider when looking for startup financing. But first you need to consider how much money you need and when you will need it. The financial needs of a business will vary according to the type and size of the business. For example‚ processing businesses are usually capital intensive requiring large amounts of capital. Retail businesses usually require less
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Mercantile Bank Limited SME Financing Division Mercantile Bank Limited has designed and developed four loan products to meet up all types of justified business requirements of SME customers. However‚ the features of the products so far developed may be changed‚ revised‚ while new products can also be developed to cope with the market demand as per guidelines of Bangladesh Bank and the Bank’s own policy. The products are: CHAKA “PvKvÓ (Term Loan). ANANNYA “Abb¨v” (Women Entrepreneur’s Loan)
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their costs impact the ability of an exporter to enter a foreign market and potentially compete in both credit terms and pricing. ◆ See what organizations and resources are available for exporters to aid in managing trade risk and financing. ◆ Examine the various trade financing alternatives. The purpose of this chapter is to explain how international trade‚ exports and imports‚ is financed. The contents are of direct practical relevance to both domestic firms that just import and export and to multinational
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“Financing of working capital by bank & the banking regulations” Ms Prachi Jain Ms Rajni Sinha (Assistant professor- Amity College of Commerce and Finance- Amity University – Noida) Working capital is that portion of a firm’s capital which is employed in short term operations. Current assets represent Gross Working Capital. The excess of current assets over current liabilities is Net Working Capital. WORKING CAPITAL FINANCING BY BANKS Credit facility provided by commercial banks to meet
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Global Financing and Exchange Rate Mechanisms Veronica L. Powell University of Phoenix MGT/448 Donald Joseph March 31‚ 2009 Global Financing and Exchange Rate Mechanisms Currency is unreliable. In some countries the United States dollar is worth more than that countries currency‚ while in other countries the U.S. dollar is worth less. The exchange rate fluctuates on a continuous base which makes the term “funny money” more realistic each day. The purpose of this paper
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To convince the rating agencies of Petrozuata as an excellent opportunity for the sponsors and potential lenders‚ the deal structure must effectively mitigate risks associated to whether the project is financed through Project Financing or Debt Financing. Project Financing Benefits - PDVSA can get into a joint venture with a private firm Higher flexibility from preserved debt capacity More foreign investments from larger private markets Reduced corporate taxes‚ tax rate reductions and tax holidays
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Short Term financing/ Financing Current Assets As a human being‚ we do have needs- food‚ shelter‚ clothing‚ and wants- laptop‚ cellphone‚ electronic gadgets‚ and the like. Parents work very hard in order to earn more money to give their children what they want. This is how they finance their everyday necessities and wants. This is just like in companies wherein they will do every means they can think of just to finance their everyday operations. The need for determining the proper source
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debt ratio. By the end of 2006‚ the liquidity position was below the prescribed level and the projected level for 2007 was unacceptable. The debt ratio is also not good but since the ratio was let to climb to the level shown in 2007 at the last director’s meeting‚ it was anticipated. However‚ the directors tentatively agree‚ to consider a cut in the dividend until the debt ratio can be reduced to approximately the level of the industry average but final action has not been taken. Covington did not
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