Assignment A Q1.What is stock split‚ What are its advantages? Ans) A corporate action in which a company divides its existing shares into multiple shares. Although the number of shares outstanding increases by a specific multiple‚ the total dollar value of the shares remains the same compared to pre-split amounts‚ because the split did not add any real value. A stock split is usually done by companies that have seen their share price increase to levels that are either too high or are beyond the
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CORPORATE ENVIRONMENT Unit 1 FORMATION OF COMPANY Promotion of Company – Promotion – Incorporation – Capital Subscription and Certificate of Commencement of Business. Memorandum of Association – Definition – Clauses. Articles of Association – Definition – Contents – Distinction between Memorandum of Association and Articles of Association – Alteration of Memorandum of Association and Articles of Association. Prospectus – Meaning – Contents – Statement in Lieu of Prospectus. INTRODUCTION
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Lecture 6 Receivables 1. Types of receivables (1)Accounts receivable: the amounts owed to the firm by customers on account from the sale of goods or services (2)Notes receivable: the amounts owing to the firm outside normal trade for which formal instruments of credit are issued evidencing the debt‚ and on which interest is generally payable (3) Other receivables include non-trade receivables such as interest receivable‚ loans‚ advances and GST receivable. 2. Accounting for A/R Accounts receivables
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TABLE OF CONTENT Title Page - - - - - - - - - - - - - - - - - - - - - i Declaration - - - - - - - - - - - - - - - - - - - - - ii Dedication - - - - - - - - - - - - - - - - - -
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Business Risk‚ Financial Risk and Leverage 1. The data relating to two companies are as given below: Company A Company B Equity Capital Rs 600‚000 Rs 3‚50‚000 12% Debentures Rs 4‚00‚000 Rs 6‚50‚000 Output (units) per annum 60‚000 15‚000 Selling price/unit Rs 30 Rs 250 Fixed Costs per annum Rs 7‚00‚000 Rs 14‚00‚000 Variable Cost per unit Rs 10 Rs 75 You are required to calculate the Operating leverage‚ financial leverage and Combined
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were Rs. 400000‚ Rs 600000 and Rs 800000 respectively. Pass the necessary adjusting entry. (3) Raghav limited purchased a running business from Krishna traders for a sum of Rs. 15‚00‚000 payble Rs 3‚00‚000 by cheque and for the balance issued 9% debentures of Rs. 100 each at par. (3) The assets and Liabilities consisted of the following: Rs Plant and Machinery 400000 Buildings 600000 Stock 500000 Sundry Debtors 300000 Sundry Creditors 200000 Record necessary journal entries in the books of Raghav
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| preference dividend = 50 000 * 0.12 = £6 000 | | Total accrued dividends = 33 000 | | | | | Accrued rent = £802 | | | | | | | Accrued directors’ remuneration = £6 000 | | | | | Debenture interest | | | | | | | 8% Debenture = £40 000 | | | | | Debenture interest = 40 000 x 0.08 = £3 200 | | | | Accrued interest (1/2) = 3 200 : 2 = £1 600 | | | | | Equipment cost = £225 000 | | | | r = 20% | | | | | | | | Motor vehicle cost = £57 200
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You have been asked to write a training document about the US Bond Market for use in the new employee-training program. In your document‚ you must make sure to address each of the following: 1a: The key players in the market; and the types of investments available to both individual investors and institutional investors‚ Bond Characteristics A bond is a "security" which gives the holder a financial claim on the issuer. This claim protects the holder in circumstances in which the issuer is
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Finance course work Introduction This is a report to demonstrate the financial position of Tesco plc. In performing this report the annual report of Tesco plc. was analysed and carefully reviewed. In addition to this‚ in order to compare the company’s performance‚ the financial statement is compared to its closest competitor which is Sainsbury’s. 1. Capital structure As mentioned in the financial report of Tesco plc the group finances its operations by a combination of retained profits‚ disposals
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EXPLAIN THE EXTERNAL SOURCES OF FINANCE AVAILABLE TO A RETAIL BUSINESS External sources of finance are funds that come from outside the business. It involves the business getting loans from individuals or institutions. External sources of finance can be divided into two parts; short term and long term. Long term has two main branches; share capital & loan capital which will be divided further below. Short term has one main branch‚ which is divided into bank overdraft‚ hire purchase‚ trade credit
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