Hampton Machine Tool Company 1. Why can’t a profitable firm like Hampton repay its loan on time and why does it need more bank financing? What major developments between November 1978 and August 1979 contributed to this situation? A/ Hampton Machine Tool Company was unable to repay its loan on time due to several factors. One of such factors is the fact that the stock repurchase‚ for which the loan was initially requested‚ was a major cash disbursement of $3 million. In the period between November
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Entrepreneurial Finance Eric Wehrly Hampton Machine Tool Company The questions for the Hampton Machine Tool Company are given below. Please prepare for submission questions 1 and 2 only. That is‚ please submit your balance sheet for December 31‚ 1979 and income statement for the four month period‚ September through December 1979‚ requested in question 2 below (your income statement should not be monthly; it should cover the entire four months). Please also prepare‚ but do not submit‚ the
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Zachary Duffy Hampton Machine Tool Company From the point of view as the bank creditor‚ Jerry Eckwood‚ a determination must be made of whether Hampton Machine Tool Company should receive an extension of their original loan of $1 million‚ as well as an additional loan of $350‚000. After research and careful consideration and extraneous research and forecasting‚ we‚ St. Louis National Bank‚ as well as myself‚ Jerry Eckwood‚ have determined to reject Hampton Machine Tool Company’s loan request‚ as
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TOPIC: MACHINE TOOLS India stands 13th in the production and 6th in the consumption of machine tools in the world. The country is set to become a key player in the global machine tools industry with substantial increase in manufacturing of high end machine tools. The Indian machine tool industry has approximately 1000 units in production of machine tools‚ accessories/attachments‚ sub-systems and parts. Threefourth of machine tool producers in India are ISO certified. The market for machine tools
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RE: HAMPTON MACHINE TOOL COMPANY TO: Jerry Eckwood‚ Vice President of St. Louis National Bank SECTION I St. Louis National Bank has to decide whether or not to grant a loan renewal request by a local company‚ Hampton Tool Company. The existing loan is due to be repaid in fifteen days and the president of the company‚ Benjamin Cowins‚ is also requesting an additional loan of $350‚000 for planned equipment purchases in October 1979. Until December 1978‚ Hampton Tools had maintained a capital
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Hampton Machine Tool Company‚ a machine tool manufacturer‚ was founded in 1915. Hampton ’s customer base is made up primarily of military aircraft manufactures and automobile manufactures in the St. Louis area. Hampton felt the boom in the 1960s with record setting profits in the mid to late 1960s. Hampton slowed down in the 1970s with the withdrawal from Vietnam War and the oil embargo. Hampton stabilized by the late 1970s and now has a larger market share as other competitors were unable to
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Hampton Machine Tool Company -Case Write-up Summary: On September 12‚ 1979‚ Hampton Machine Tool Company requested from St. Louis National Bank a renewal to their loan of $1‚000‚000 due to be repaid on September 30‚ 1979 and also to be given an additional loan of $350‚000 for new equipment purchases in October 1979. Both loans were to be repaid on December 31‚ 1979. Hampton M.T. Company wrote a letter to the St. Louis National Bank stating the reasons for the extension of the loan and the need
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Hampton Machine Tool Company 1. Hampton Machine Tool Company was founded in 1915 and was based out of the St. Louis area. It was a manufacturing firm serving the automobile and aircraft industries. Due to the strong automobile market and defense spending for the Vietnam war‚ the company was seeing record production and profits through the 60’s and early 70’s. After that‚ the Arab oil embargo‚ the increase in the price of Gasoline and the then recession was taking its toll on the Company’s financials
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Hampton Machine Tool Company was established in 1915‚ whose customers were aircraft and automobile manufacturers located in the St. Louis area. The company had a large success rate throughout the 1960’s‚ with an unfortunate decline throughout the mid 1970’s in sales. The company was able to recover in the years following due to a large increase in military aircraft sales‚ especially the company’s conservative financial policies. Mr. Benjamin G. Cowins‚ president of Hampton Machine Tool Company requested
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1)Introduction A machine tool is a powered mechanical device‚ typically used to fabricate metal components of machines by machining‚ which is the selective removal of metal. Machine tools can be operated manually‚ or under automatic control. Early machines used flywheels to stabilize their motion and had complex systems of gears and levers to control the machine and the piece being worked on. Soon after World War II‚ the numerical control (NC) machine was developed. NC machines used a series
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