The reasons for the depression of economic in Argentine: Argentine government overvaulted the Argentine peso in the past. By 2001, foreign debt caused and had AR$132 billion pubic debt through the fourth year of a recession. Besides, Exports were unable to generate enough foreign currency to service the debt. On December1, 2001, “Corralito”, a policy restring depositors’ bank withdrawals to AR $1000 per month, was published. Subsequently, the economy of Argentine began emerging from the crisis
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In the accounting policy manual of Atlantic Ltd, the provision of doubtful debts is set to 1% of the sales in the financial year. However, in 2012 - 2013 financial year, the provision for doubtful debts ($570,000) was set to 10% of the sales ($5,700,000), which was 10 times higher than the company accounting policy. There were a large number of debtors that exceeded 60 days where the company’s policy of credit terms is 30 days. In addition, there was 163% increase in total sales in 2012 - 2013 financial
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Rebeka Ramos Panther ID - 1948265 ACG – 6175 Case 3: United Parcel Service’s IPO 1. How is UPS performing? Back up your assessment with your financial analysis. What factors are driving this performance? Since it first opened for business 1907, UPS has proven to be a worthy competitor and more importantly a threat to be taken seriously. By 1999, after almost a century in business, UPS had captured 51% market share of the $43 billion dollar US package delivery industry. That same year they
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Financial Management includes the following 5 functions * Financing function- raising capital to support firms operations and investment programs * Capital budget function- selecting the best projects in which to invest firm resources, based on a consideration of risks and return * Financial management function- managing firms interna; cash flows and its capital structure to minimize the financing costs and ensure that the firm can pay its obligations when due * Corporate goverance
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The Global Financial Crisis Introduction The global financial crisis which started in early 2007 has proven to be perhaps the great financial catastrophe in history. Although it traces its roots back to the starting of the millennia, the subsequent meltdown was most gruesome over the past 3 years. What began as a crisis of the sub-prime mortgage market in the United States quickly transcended national borders and developed into a upheaval of epic proportions. What ensued was a systematic debacle
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because of their direct relation to making luxury automobiles in the high end of the automotive market. Liquidity Liquidity ratios simply show how much of current resources a company has to be able to cover currently maturing liabilities or debts (Hill). For example, does a company have enough cash on hand to pay the current payments on their equipment? These ratios then, inherently look at items on the balance sheet that are classified as current which typically means that they are maturing
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Case Study: Debt Policy at UST Inc. UST Inc. is the leading producer of moist smokeless tobacco products which manage by using the conservative debt policy and high dividend payout. Since the firm has faced the decline of the growth from year 1993, the company decided to make the recapitalization by borrowing $1 billion to repurchase their stock in order to maximize the company’s value. By borrowing, interest charged on loan is tax-deductible which the firm can benefit from tax
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structure’ refers to the technique followed by corporations to finance its assets through combination of equity, debt, or hybrid securities [2]. In simple terms, a firm's capital structure is the symphony of its liabilities. For example, a firm that possesses $40 billion in equity and $60 billion in debt is said to be 40% equity-financed and 60% debt-financed. The firm's ratio of debt to equity that is 60% is referred to as the ‘firm's leverage’. Leverage and Gearing are two terms that are often
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Foreign Exchange Management Act 1999 11. Indian Stamp Act 1899 12. Code of Civil Procedure 1908 13. Banker’s book Evidence Act 1891 14. Information Technology Act 2000 15. Right to Information Act 2005 16. Recovery of Debt Due to Banks And Financial Institutions Act 1993 (DRT Act) 17. Securitisation & Reconstruction of Financial Assets and Enforcement of Security interest Act 2002 (SARFAESI Act 2002) Indian Contract Act 1872 Who is
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7.1 Receivable turnover ratio=Net credit sales/ [(Average accounts receivable)/2] =34,529.9/ [(1726.4+1194.8)/2] =34,529.9/1460.6 =23.64 =23.64*1460.6 =$34,528.58 This means that the company collected account credit sales 23.64 times in a year. Therefore the amount collected from customers in the year 2015 will be 7.2 Ratio analysis: a.) Trade receivable turnover is an effectiveness proportion or activity proportion that measures how frequently a business can transform its trade
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