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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home to 1.3 billion people and constitutes 22% of the world ’s population. Stringent rules of the Marxist policies‚ an autocratic socialist system‚ left China a conservative‚ under-developed nation for most part until refurbishment of economic and trade policies in the late 1970 and 1980 sluggish dragged a nation of China ’s gigantic magnitude towards market-oriented economic development. The well known Open Door Policy introduced in 1978 began the journey of opening up China‚ its economy and the
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Short-Term Financing Short-term financing have some advantages that extend financial arrangements. Short-term funds interest rates are much lower than long-term funds. There are many different sources of short-term financing that companies use to better fit their business and budget. I will list and briefly explain the source and why a company may choose over the other. 1. Bad credit: offers secure and unsecure loans to a business. 2. Trade credit: a line of credit extended for 30 to 60 days
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Hypothesis: The local car dealership that offers in house financing has a large percentage of accounts that are past due because of the lenient credit profile they utilize to approve financing. A hypothesis is a statement that variables are assigned to the case. (Cooper & Schindler‚ 2011) In the above hypothesis the case is accounts past due and the variable is the lenient credit profiles that are utilized for approving finance. My hypothesis has adequacy for its purpose‚ is testable. I believe
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IMPORT FINANCING Background Like other developing countries‚ Pakistan’s import bill exceeds exports. Therefore‚ it faces scarcity of foreign exchange to meet its import requirements. According to daily “DAWN” dated 18th November 2012‚ Pakistan’s foreign exchange reserves were USD 13.84 Billion at the week ended as on 9th November 2012. Gap between the import and export bills is partially covered by regulations‚ controls and measures exercised by State Bank of Pakistan and partially by the
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Health Care Financing Introduction Health Care financing has been a big issue in the Unites States since the 1960’s and today it is even more of a serious issue‚ with the millions without insurance and health care costs on the rise the United States health care industry is in trouble. Economic hard times have affected Medicare and Medicaid and it has resulted in many cuts. Private insurance companies have raised rates and employers have had to pass the cost onto employees by raising premiums
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several contractual obligations. Contractual Precedence It seems as though Mr Williams believes that Mr Wu is in breach of contract due to the non-delivery of goods‚ as is stipulated in the United Nations Convention on the Contracts for the International Sale of Goods (CISG) . However‚ the contract between Mr Williams and Mr Wu states that the conditions as to delivery are ex-warehouse‚ meaning that by placing the goods in a warehouse accessible to Mr Williams‚ Mr Wu has completed his obligations
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[CU747] Solve business problems [747.1] Understand business problems and their causes 1.1 Describe ways of recognising when a business problem exists In most organizations recognition of a business problem typically relies on measures and management reporting of measures against expectations. Usually each performance area measures quality‚ cost‚ and speed of service - plus possibly customer satisfaction. If one of these measures starts to vary from expectations then management should investigate
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Case 5: Financing PPL Corp.’s Growth Strategy Study Questions 1. Evaluate PPL’s growth strategy and financing policies. Why is it important for PPL to seek out alternative financing strategies instead of using its own corporate balance sheet? In the early 1990’s‚ the anticipation of deregulation in the electricity marketplace led PPL to change its business strategy. It was essential for them to enter the market as soon as possible or they may have faced barriers to entry. In 1994‚ PPL established
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SOME OF THE MAIN PROBLEMS OF LEXICOLOGY 1 lexicology is the study of words-their menanigs and relationships. * English vocabulary is one of the most extensive amongst the world’s lang.contains an immense number of words of forerign origin. * lexicology has to study the etymology of word‚e.g.their origin‚ their development and function * And English is lang.which had changed a lot in a short period of time * So‚ lexicology has to deal with all the changes in grammar and the vocabulary
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