Essays on Borrowings

The recent Brexit vote has brought about a number if tensions associated with membership in the European Union and a common European economic area. It has also put into serious question the European Project started in the post-World War II era. Please argue for or against Britain being a member of the European Union. Be sure to cover five broad areas of disagreement economics (Benefits/ Costs), political (Benefits/ Costs), Labor market (who wins? Who lose), social (costs/ benefits), and issue ofan identify? Britain a second-largest economy after Germany is a member of the European Union, has taken up a ...

Islamic Architecture in India

The diversity has always been a distinguishing cross-cutting feature of the whole mankind. Consequently, the modern world has always been a multicultural one since the dawn of times and it is absolutely impossible to establish particular borders between the cultures, as such phenomena as cross-cultural communication has existed during the whole timeline. On this point, it is important to mention that the emerging of any culture first of all depends on the location of its carriers. In other words, it strongly depends on the geographical matters. That is why such rapid cultural differentiation appeared, which has manifested, first of ...

Abstract

Carrying out the analysis in the multiple directions of liquidity analysis, fixed assets, off-balance sheet items and capital structure has helped us in learning more about the financial situation of the company. Beginning with the liquidity analysis, the company is suffering from liquidity dry-up with current liabilities exceeding the current assets significantly. Most importantly, declining cash reserves are the biggest concern. On the other hand,with consistent growth in the fixed asset base and a sustainable debt-equity composition do favor the company, however, with deteriorating liquidity position, the company may face issues in committing to its long-term obligations. Apart ...

Edmonds, Tsay, and Olds (2011, p.314) considers the cash budget to be one of the most important operating budgets developed by the company. The reason for this is that it reveals the amount of cash excess and deficit incurred by the company, which is usually on a monthly basis (Horngren, Harrison, & Oliver, 2012, p.1065). The additional purpose of the cash budget is that it reveals the amount of cash that can be used by the company for short-term investments or for the repayment of previous borrowings in the event of a cash excess (Edmonds, Tsay, & Olds, 2011, p.315). The ...

Introduction

Tingyi Holding Corporation is the Chinese company that deals in the production and distribution of instant noodles, baked products, and beverages. The company also produces soft drink under its brand name of Master Kong. The company is the largest manufacturer of instant noodles in China. Tingyi Holding Corporation was established in 191 by the Wei Brothers of Taiwan. The company got listed in 1996. The soft drink brand of the company, Master Kong, was declared to be the second most recognized brand in China. The company started producing instant noodles in 1992 under the brand name of Master Kong ...

The project will be financed with a total investment of AED 7,00,000. The total investment will be proportionately invested with AED 400,000 sourced from the bakery owners and remaining AED 300,000 borrowed from a local bank. Since we don’t have mortgage to offer, we are expecting the loan proceeds at the rate of 10%. The reason for borrowing from a bank is to gain the advantage of tax deductibility on interest paid on debt borrowings. a) Sales: Sales/ Turnover of the company is expected to grow consistently over the year. However,for the purpose ...

About the report

The report is based on our assistance given to Wheel Industries where we have analyzed the long term investment opportunities available with the company using the techniques of capital budgeting. To facilitate better understanding for our readers, we have included all the calculations within this report while every calculation is explained comprehensively.

Project Details

Wheel Industries is considering a three-year expansion project, Project A. The project requires an initial investment of $1.5 million. The project will use the straight-line depreciation method. The project has no salvage value. It is estimated that the project will generate additional revenues of $1.2 million per ...

Effects of increasing interest rates on Banks

The profitability of the bank will increase with the increase in interest rate because it will directly yield cash, and the profits will be directed to the earnings (Mueller). Since the hike in interest rates occur in environments with strong economic growth and the bond yields are rising, the banking sector will experience a profit increase. Therefore, most consumers will demand loan spikes; hence, increasing the earnings for the banks. For instance, if a client has $ 2 million in his account, he will earn 1% interest, and the bank makes 2% on this money in the short run. Consequently, ...

Abstract

Financial analysis is an essential tool in the hands of the manager, as it is with its help the decisions related to the company’s finances are taken. Without the analysis and grounds for making such management decisions, the firm cannot achieve the desired level of income, or the lack of financial settlement will lead the company to bankruptcy. The purpose of the assignment was to perform financial analysis of a company listed on the Bursa Malaysia. Dominant Enterprise Berhad was chosen for the completion. The Malaysia-located company turned into public listed organization with thirteen subsidiaries, operating on production ...

I. 1. Alpha Corporation’s major sources of cash from 1989- 1991 were proceeds from cash from operations, disposal of obsolete assets, proceeds from disposing of discontinued operations, sale of common stock and proceeds from raising long term debt. Its major uses of cash were purchases of fixed assets, capitalized software and treasury stock, re-payment of long term debt and payment of dividend. Major sources of cash for Beta Corporation were cash received from customers and proceeds from issue of common stock. The major uses were purchase of marketable securities and other capital expenditures, re-payment of subordinated debt and ...

A decline in the profitability of the business would leave the business with less cash reserves and thus an increase in borrowings. Exhibit 1 shows that at a gross profit margin of 30%, the business would not have any borrowing over the period and would have a reserve of marketable securities of $21,836. Exhibit 2 shows that if the gross margin were to decline from 30% to 27.5% the business would exhaust its reserves in marketable securities in November and would have to borrow $47, 117 in November order to meet its closing cash balance target of $120, ...

Financial Analysis Project

Target Corporation is one of the largest American merchandise retailers. As of January 31, 2016, it operated 1,792 stores in the USA. It is also a component of the Standard & Poor’s 500 Index. The company earned a net income of $3,363 million in 2015 compared to a net loss of $1,636 in 2014 (Target, 2016). Horizontal analysis involves comparing each item on the most recent statement with the related item on the earlier statement in terms of amount and percent of increase or decrease (Warren, Reeve, & Duchac, 2009, p. 585).

Horizontal Analysis

Horizontal analysis of Target’s ...

About the paper

Capital structure of the company represents the mix of debt and equity components used by an entity to finance its capital requirements. However, right from the beginning of the corporate era, the goal of the financial managers has always been the minimization of weighted average cost of capital and thereby maximizing the value of their entity. Ironically, the world of academicians is divided and postulates different opinion as under what conditions the WACC rate is minimized and how the additional funding affects the WACC rate of the company. While static trade-off theory stands as the most pragmatic theory relating ...

English

The relationship of war and the economy is a fundamental interconnection of science. The course and outcome of the war, the victory or the defeat of the state are determined by various factors, among which economic factor is crucial. Economics of a country has a decisive influence on the course of social progress and it defines the development of the country no matter how influential the political and other factors are. In this essay, we will try to answer one of the most anticipated questions: ‘What the money is used for?’. That is why for you to understand the ...

Latin America came under colonization very early but gained independence early too. But the effect of inequality has continued. While Argentina, Uruguay, Chile and Cuba have had high exports per capita, it has been very low for some countries like Venezuela, Peru and Paraguay. The region got integrated to global markets through trade in the 19th century and its share in global trade increased to almost 12% in mid twentieth century. However, since then it has come down to about 5-6%. There was an era of protectionism early on, but there was gradual shift towards industrialization and reliance on ...