Sources of Finance The financing of every business is the most fundamental aspect of its management. Get the financing right and the company will have a healthy business‚ positive cash flows and ultimately a profitable enterprise. The financing can happen at any stage of a business ’s development. On commencement of your enterprise the business entity will need finance to start up and‚ later on‚ finance to expand. Finance sources may be internal or external but they may also be short‚ medium or
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Assets-Inventory/Current Liabilities Inventory Turnover Measures how quickly a firm sells its goods Cost of goods sold/Inventory Average collection period Measures the average amount of time that elapses from a sale on credit until the payment becomes useable funds for the firm Accounts Receivable/Average Daily Sales Average Payment Period Measures their payment performance Accounts Payable/Average Daily Purchases Total Asset Turnover Indicates the efficiency
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business is raising the money to get going. The entrepreneur might have a great idea and clear idea of how to turn it into a successful business. However‚ if sufficient finance can’t be raised‚ it is unlikely that the business will get off the ground. Importance of Finance Finance is very important for business organisation . Finance includes planning of financial resources‚ making of optimum capital structure and effective utilization of financial resources by deep analysis of cost of capital and capital
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INTERNATIONAL FINANCE TOPIC 1: INTRODUCTION TO INTERNATIONAL FINANCE Learning objectives After reading this topic you should be able to: • • • • • • Understand the background of international finance Define international finance Explain the reason for studying international finance Explain the roles of international financial manager Understand the background of multinational corporations Distinguish between international finance and domestic finance 1.1 BACKGROUND TO INTERNATIONAL FINANCE International
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approved the Tydings-Mcduffie Law. Through the Homestead Act‚ the right to own any civil land up to 24 hectares was given to any Filipino. The Protestant religion was accepted by the Filipinos. The social status of Filipino Women during the American period. They were allowed to participate in politics‚ to work in the government‚ and to pursue their studies in college. Matters like health and cleanliness were improved. Transportation and communication in the Philippines were developed. The influence
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risk.) As generic examples of risk-free assets we shall consider a bank deposit or a bond. M. Capi´ ski‚ T. Zastawniak‚ Mathematics for Finance‚ n Springer Undergraduate Mathematics Series‚ © Springer-Verlag London Limited 2011 26 Mathematics for Finance The way in which money changes its value in time is a complex issue of fundamental importance in finance. We shall be concerned mainly with two questions: What is the future value of an amount invested or borrowed today? What is the present
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000 face value bond pays interest of $37.50 every 3 months. If you require a simple annual rate of return of 12 percent‚ with quarterly compounding‚ how much should you be willing to pay for this bond? (Hint: The PVIFA and PVIF for 3 percent‚ 60 periods are 27.6748 and 0.1697‚ respectively.) a. $821.92 b. $1‚207.57 c. $986.43 d. $1‚120.71 e. $1‚358.24 ANS: B Tabular solution: (PVIFA and PVIF are given in the problem.) Vd = $37.50 (PVIFA3%‚ 60) + $1‚000 (PVIF3%‚ 60) = $37.50 (27.6748) + $1‚000
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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‚ which states
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Analyzing Management Communication in the Military BUS 600 Management Communications with Technology Tools February 17‚ 2014 Analyzing Management Communication in the Military In order to achieve the nation’s military objectives and victory during conflict‚ military commanders have to be effective leaders. Their primary mission and concern should be to achieve the military’s goal of defeating the enemy in combat while upholding US policies. Military leaders are very different
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SOCIOLOGY 1 (economics) The total amount of money or goods expended in an endeavour. It is money paid out at some time in the past and recorded in journal entries and ledgers. ACCOUNTING COST: The actual outlays or expenses incurred in production that shows up a firm’s accounting statements or records. Accounting costs‚ while very important to accountants‚ company CEOs‚ shareholders‚ and the Internal Revenue Service‚ is only minimally important to economists. The reason is that economists are
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