Category Archives: BUSINESS FINANCING

Business development essay on: Opportunities and Threats to MNC’s Seeking to Do Business in China and PESTLE Analysis of China

Business development essay on: Opportunities and Threats to MNC’s Seeking to Do Business in China and PESTLE Analysis of China

Table of Contents

Essay Writing Tutor SydneyIntroduction. 4

PESTLE Analysis of China. 4

Political Environment 5

Constitutional System.. 5

Stability of Government 6

Business Freedom.. 6

Trade Freedom.. 6

Tax Policies. 6

Legal Environment 7

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Business development essay help: Australian retail chain – Culture and business negotiation

Business development essay help: Australian retail chain – Culture and business negotiation

Introduction:

Assignment Writing Tutor AustraliaThe aim of this report is to understand and elaborate the meaning of high-context and low-context cultures. This understanding can then be used to apply in the case of my organization (a multi-national Australian retail chain). The report elaborates on how the Australian company can make its negotiation more effective, especially in high-context cultures.

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Business Model assignment on: Wal-mart

Business Model assignment on: Wal-mart

“A business model describes the rational of how the organisation delivers, captures and creates value” (Osterwalder & Pigneur, 2010). On analysing the business model that is adapted by Walmart, it can be said that it follows the model of nine blocks.

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FINANCIAL MANAGEMENT CALCULATION

QUESTION

School of Business

 

BUACC3701:  Financial Management

 

Semester 1 – 2012

ASSIGNMENT

This assignment is to be completed in groups of three and carries 30 percent of the marks in this unit.

Question 1. (5 marks)

Brown Ltd operates outdoor amusement centres in a number of country towns. The company has decided to build another centre that is expected to generate a permanent increase in EBIT of $100,000 pa. Current EBIT is $350,000. Brown currently has a capital structure that utilises bonds, ordinary equity and preference shares. The $200,000 of issued bonds pay 8% pa. Preference shares pay an annual fixed dividend of $150,000. Currently 250,000 ordinary shares have been issued and are trading at $2 per share. The company pays tax at 30%.

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FINANCIAL RATIO’S IN ACCOUNTING

QUESTION

Final Ratio Calculations

  Premier Investments Ltd David Jones Ltd
KEY RATIOS

2010

2011

2010

2011

Gross Profit

Margin

59.09% 59.51% 39.73% 39.11%
Net Profit Margin 16.11% 9.54% 12.11% 12.62%
Return on Equity 9.24% 4.35% 22.91% 21.45%
Aset Turnover

(Times)

0.61

0.60

1.72

1.62
Return on Assets 9.81% 5.72% 20.81% 20.39%
Inventory

Turover (Days)

73 days 75 days 83 days 88 days
Detors Turnover

(Days)

4 days 3 days 1.5 days 2 days
Creditors

Turover (Days)

31 days 24 days 35 days 30 days
Curret Ratio 426.57% 173.81% 104.72% 122.91%
Quick Ratio 347.61% 140.07% 12.88% 11.78%
Det Asset Ratio

(total debt)

15.96% 18.35% 37.72% 35.33%
Det Equity

Ratio( total debt)

18.99% 22.47% 60.56% 54.63%
Times Interest

Earned (Times)

17.99 times 8.69 times 35.21 times 31.79 times

Just write the half of the body for the report which contains these main points word limit(700-800 words)

 

  • Financial stability – both short-term and long-term
  • Share ratios

 

of both companies, using the ratios given and any other appropriate information.

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ESSAY ON MANAGERIAL FINANCE

Part A

It was a difficult year for the company. The actual profit for the year is almost half of what was estimated. The variance analysis clearly indicates that production manager is not able to work as per the estimated consumption of raw material. In addition, to boost the sales of the company, initiatives are required from the table of sales director. The management should also start preparing budgets on monthly basis instead of quarterly basis to keep a check on various operational areas.

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BUSINESS OF ANZ BANKING CORPORATION

QUESTION

ANZ’S bank should opt for outsourcing as a method of management and cost cutting measure or not? Your bank should focus on three key issues as discussed below

SOLUTION

  • The changes to be made with effect of outsourcing, in simpler words the effects of outsourcing on organization and those effects could be minimized in terms of firm’s permanent employees or not? It should also tell details of all changes that have to be made in the firm with effect to outsourcing introduction.
  • The risk factor aversion associated with outsourcing and off shoring as a method of new management change policy. In order to introduce outsourcing, your bank should be highly cautious about the risks associated with outsourcing and there must be proper planning for avoiding those risks from the firm end.
  • The third key factor which your firm should focus on is how to tackle with integrity of the firm together with implementation of outsourcing. In other words, managing with the workforce motivation and also the profitability factor even if outsourcing has been newly introduced, it has to be done beforehand only where employees and the top management should focus on maintain the integrity of the firm with simultaneously handling outsourcing also.

Potential challenges to outsourcing concept implementation:

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FINANCIAL STATEMENTS OF SELECT HARVESTS LIMITED

QUESTION

  1. Review current AASB framework which is also known as “Framework for the Preparation and Presentation of Financial Statements” and provide a critical analysis of different measurement bases.
  1. B.    From a review of 2011 annual reports/financial statements of twoAustralian firms listed in ASX from different industries, identify and briefly discuss different measurement bases used by these firms and provide explanation about the implications of using these measurement bases.
  1. C.    Explore the relationship between accounting information and market reaction with reference to measurement issuesby usingthe relevant research literature from refereed journals.

SOLUTION

  1. A.    The AASB Framework or “Framework for the Preparation and Presentation of Financial Statements” provides the framework for defining different financial elements, measuring them and finally presenting them as financial statements. Measurement can be defined as the process of evaluating the value for the elements of financial statements to be reported in financial statements like balance sheet and income statement. There can be different ways of measuring the value depending on our assumptions. Hence, there are measurement bases. The different measurement bases included in the current AASB framework are described below:

Historical Cost: Very commonly used measurement basis, Historical cost assumes the cost of the initial transaction. Assets are calculated as the fair value of the consideration given to acquire them at the time of the initial transaction. Liabilities, on the other hand, are evaluated at the fair value of consideration received in exchange of considerations during the time they were incurred (AASB). Although the term ‘fair value’ may seem a bit confusing, the definition of historical cost also refers to “the amount of cash or cash equivalents given” in case of assets and “the amount of proceeds received” in case of liabilities. ‘To acquire’ an asset here means to encompass all possible means of asset acquisition (CASB). Also, the historical cost calculation assumes it to occur before any adjustments or amortization. In case of wanting to consider any adjustments, terms like ‘historical cost less adjustments’ is used.

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FINANCIAL REPORT OF CORPORATE ACCOUNTING

QUESTION

Sherbet Ltd makes an offer of 1,000,000 ordinary shares to the public.  In its prospectus it notes that the shares are to be issued at $1.50 per share.  The shares are to be paid in instalments.  The first payment, to be made on application is $0.80 and a second amount of $0.20 will be due on allotment.  Remaining monies will be called at future dates to be determined.

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COMPARISON OF FINANCIAL RATIOS

QUESTION

Overview

You are required to undertake an analysis of the financial health and management practices of Clive Peeters Limited.  The analysis is to be based on Annual Reports of the firm and any other information you deem relevant i.e. newspaper and journal articles etc.   This will require you to search the web for articles on Clive Peeters; there has been a significant amount written on the firm.

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CALCULATON OF CORPORATE FINANCE

QUESTION
London School of Business & Finance
MBA/ MSc Finance Programme
CORPORATE FINANCE STRATEGY
Students MUST answer ALL sections

Issued: 23rd March
Due Date: 23rd April

SECTION A
This section comprises two case-problems
(60 marks)
Problem 1 (30 marks)
Llewellyn Jones, CFA, an analyst with City Capital, is considering buying a Hudson
Chemical corporate bond. He has summed up the following balance sheet and income
statement information for Hudson Chemical as shown in Exhibit 1. He has also calculated
the three ratios shown in Exhibit 2, which indicate that the bond is currently rated “A”
according to the firm’s internal bond-rating criteria shown in Exhibit 4.
Jones has decided to consider some off-balance-sheet items in his credit analysis, as
shown in Exhibit 3. Specifically, Jones wishes to evaluate the impact of each of the offbalance-sheet
items
on each
of the
ratios
found in
Exhibit
2.

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CREDIT ANALYSIS IN MARK ANGELO

QUESTION

Question 1

You are requested by the Head of Credit of Bank CCC to spot check existing loans of one of the bank branches and to compile a brief report about the extent to which products and the needs of customers were well matched. The following information was retrieved by you. Please provide a brief reason why you regard the match as suitable or not.
Ans. There are different types of loan products. Loan products should be matched with customer requirements so as to realize maximum worth of money and keep cost of money to minimum. Websites of major banks provide sufficient detail regarding various products. As per ANZ website as on April 11, 2012 (www.anz.com)
Type of loan     Type of customer    Need    Matching good or not?    Recommended form of finance    Reason why matching is good/not good
Overdraft    Small business    To finance holiday of owner    Not  good    Credit cards    Overdrafts should only be used for financing some urgent and uncalled liquidity requirements in business and when there is not sufficient cash or bank balance with the firm.
Term loan supported by mortgage over property    Large business    To purchase a residential property in which the Manager of the production plant of the business will stay.    Not good    Working Capital Loan    Housing arrangements for staff should be mentioned in their salary break up, salaries are working capital requirements and should not be financed by term loans.
Credit cards for sales staff of company    Large (corporate) businesses    To use as form of payment for regular dining, travelling etc.    Not Good    Working Capital Loan    Credit cards should be used in personal accounts. Food and travel expenses incurred  during official work, should be properly supported by bills before being sanctioned. Filling up of vouchers and attachment of bills by sales staff and submission to accounts dept. These are working capital requirements and can be funded by funds used for financing working capital
Financial lease    Consumers    To purchase a cabin cruiser boat    Not Good    Personal Loans    Financial lease should be used to fund long term business capital requirements
Term loan with chattel over machines and letter of credit     Farmers    To import machinery that will be used in the manufacturing of products    Good        With such loans farmers will be able to procure the needed machinery for improving their farming productivity; they can repay the loan amount in Equated monthly instalments out of their monthly earnings. After certain type when the loan gets repayed, the farmer can get ownership of the machine, whereas in hire purchase alternative the farmer will have to pay a certain monthly rent and will not get ownership. Hence if the machinery is for long term permanent use, then this form of financing is appropriate.
6 month bank acceptance of $6 million with overdraft replacing it for another 6 months    Large boat manufacturing company    Funds needed for 6 months to pay for material to complete the manufacturing of a commercial boat that has to be built on order. Large contract payment will be used to repay loan.    Not Good    Business loan supported by adequate and appropriate Collateral    Contract for items to be built on order should be accompanied by advance payments, if not in whole then in part, payable periodically, so as to cover the expenses incurred in manufacturing.If the manufacturer is working without any advance,then in this case he is incurring high risk and if he still wants to take the risk,then he must provide adequate and appropriate collateral for taking a business loan.
Revolving credit    Medium size business in a growing marketing environment    The business provides credit to its customers and requires additional working capital    Good        Revolving credit can be used for financing sort term liquidity requirements of firms including their working capital requirements. The debtors can repay their monthly instalments out of the money realized by sale of its products.
Overdraft supported by industrial mortgage    Manufacturing company    Purchase of industrial land and putting up of a large building for operational business activities    Not Good    Overdraft over Mortgage are more suitable for short term mortgages, say 2-3 years,they carry higher rates of interest    Long term mortgage options,say flexible mortgage,benefits include lesser interests and tax savings.
http://www.fool.co.uk/Property/guides/New-Type-Of-Mortgage.aspx
Increase in existing term loan on farm property supported by mortgage on farm    Wealthy consumer    Purchasing of a seaside apartment for investment purchases    Good        Term Mortgages are appropriate forms of financing for purchase of property. Extension of mortgage is time saving as it does not require the repetition of procedures .
Foreign currency seven year variable rate loan financed from bank’s own foreign fund pool and supported by mortgage on financed chattels    Medium size business    Local interest rates in this country regarded as extremely high. Foreign rates much lower for purchase of manufacturing equipment.    Good        Global markets should be accessed  for getting best deals.
Increase in residential mortgage    Consumer    Buy new car. Sufficient equity on existing house mortgage    Not good    Car loans are priced differently than property loans ,they are for short time periods and the interest rate is much higher    Car loan/Personal loan
Personal loan    Farmer    Interim 8 month finance required to cover costs of planting wheat on agricultural property. Loan will be repaid after harvesting.    Not Good    Loan supported by sufficient collateral    Very high risk if not supported by collateral
Factoring of debtors    Small business with good debtor book but no collateral to provide to bank    Working capital to assist business with seasonal liquidity requirements    Not Good    Overdraft    Debtors have not entered into any agreement with the banks. Hence applicant should rely on Self resources, outstanding accounts receivables, mortgage agreement.If he still has to seek loan he can seek overdraft, but repay as soon as he realizes outstanding payments.
Increase in credit card limit      Consumer    Finance of best holiday ever    Good if accompanied by higher balances        Increase in credit card limit has to be accompanied by higher balances and higher interest rates.

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FINANCIAL STATEMENT OF WOOLWORTH’S

QUESTION
Murdoch University
Murdoch Business School
MBS605 BUSINESS FINANCE
Group Assignment
1

CASH FLOW ANALYSIS AND SECURITY VALUATION
Woolworths Ltd
Semester 1, 2012

Assignment submission summary
Component Worth Due date
Group Assignment 25%
Tuesday  8
*Group Evaluation
Tuesday 8
th
th
May
May

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CREDIT ANALYSIS AND RATIO ANALYSIS OF MSB

QUESTION

Module:   Principles and Application of Credit Analysis – Report 40%

Student Number:    

 

Basis of Assessment

 

Mark

Weighting
%

Presentation and Style

Marker’s comment/s

 

10

Evidence of Reading/Application of Theory

Marker’s comment/s

 

20

Logical Development/Discussion of Approach to Credit Analysis and Mitigation of Risks

Marker’s comment/s

 

30

Demonstrating Understanding

Marker’s comment/s

 

30

Summary or Conclusion

Marker’s comment/s

 

10

 

 Students:  The mark for this assessment will be available via U-learn

 

 

 

General Comments: (Markers are required to complete this section)

Basis for Assessment (to be given to students)

Presentation and Style  (10)

Should be clearly written and easy to read. Any tables and figures should be explained. There should be an appropriate structure. The Harvard referencing system based upon the School website guideline should be adopted.

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