Business is highly leveraged and equity in the business insufficient to absorb debts should the worst happen. The business does not have own funds invested in the business and equity is comprised of retained profits of R813K. Bank cannot put reliance on the equity at hand. Members need to invest funds into the business‚ reduce debt level or apply for restricting of facilities. Liquidity in the business is a huge concern. Working capital declined from negative
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in possession of goods‚ securities or any other assets belonging to the debtor to retain them until the debt is repaid‚ provided that there is no contract express or implied‚ to the contrary. It is a right to retain possession of specific goods or securities or other movables of which the ownership vests in some other person and the possession can be retained till the owner discharges the debt or obligation to the possessor. In Halsbury’s Laws of England‚ it is stated: "Lien is‚ in its primary sense
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The University for business and the professions MSc Degree in Shipping‚ Trade and Finance MSc Degree in Supply Chain‚ Trade and Finance MSc Degree in Energy‚ Trade and Finance Cass Business School Module Code SMM586 Exam title Corporate Finance Full/Part time Date 1st May 2013 Time 10.00 -13.00 Division of Marks: Section A carries 36 marks‚ Section B carries 28 marks and Section C carries 36 marks. Instructions to students: Students should answer TWO questions
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the data by using pooled regression in a panel data analysis. Following the model developed‚ it has chosen six independent variables i.e. firm size (measured by natural log of sales)‚ tangibility of assets‚ profitability‚ growth‚ quick ratio and non-debt tax-shield and further analyzed their effects on leverage. The results‚ except for firm size‚ were found to be highly significant. Introduction The firm can choose a mix of financing options to finance its assets so that its overall value can
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These control weaknesses are detailed below along with the resulting potential for irregularities in the system. Failure to file cash invoices in numeric or date order makes it easy to “misfile” them and they could potentially be lost leading to bad debt write off. Failure to use a carbon copy process‚ if the invoices are raised manually‚ also exposes the council to risk of error because there is no guarantee the copy is an exact duplicate. Failure to provide a receipt on immediate collection of
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TMA 2 – Part A: Question 1: 1700x12=£20400 16827/12=£1402.25 1700/100=17x2=34+1700=£1734 1734x12=£20808 17104/12=£1425.33 1402.25x6=£8413.50 1425.33x6=£8551.98+£8413.50=£16965.48/12=£1413.79. Piper’s average net monthly income over one year would be £1413.79. Net income Average month £ per month. Earnings:
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Financial Management MM.100 Subject Code: B-103 Part One: 1. Question :The approach focused mainly on the financial problem of corporate enterprises Ans: (a)Ignored non-corporate enterprise. 2. Question :These are those shares‚ which can be redeemed or repaid to the holders after a lapse of the stipulated period Ans: (c) Redeemable preference shares 3. Question: This type of risk arises from changes in environment regulations‚ zoning requirements‚ fees‚ licenses and most frequently taxes
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the only substantial source of funds available. 1978‚ withdrawal of the court’s ‘execunet’ Dec.1978‚ public market to issue convertible preferred stocks. Preferred offerings allowed MCI to retire its short to intermediate term bank debt and to issue further debt of a longer term kind. 1980‚ MCI provided ‘execunet’ to residential customers. Strong growth but constrained only by a lack of investment capital. July‚ 1980. Leasing actitvity decreased. FY1981‚ demand for investment fund intensified
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Generally‚ partners recognize gain on property contributed to a partnership only when the cash they are deemed to receive from debt relief exceeds their basis in the partnership prior to the deemed distribution . Harry did not have any debt relief. 1 b. $0. Partners may never recognize loss when property is contributed to a partnership even when they are relieved of debt. c. Sally should consider selling the property to the partnership rather than contributing it. By selling the property‚
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trying to determine his company’s optimal capital structure. Este must beside whether it should issue long-term debt in the form of bonds (notes + warrants) or long-term publicly traded stock (equity) through the company’s first initial public offering (IPO). Management is seeking $7.5 million in capital in order to (1) pay down its working-capital line of credit‚ (2) repay long-term debt and (3) capital improvements‚ among other things. Pablo Este’s determination will arise from a variety of significant
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