MANAGEMENT OF WORKING CAPITAL 1. Meaning and Types of Finance: Finance - Finance is the Art & Science of Managing Money - Finance is the Art of passing currency from hand to hand until it finally disappears Types & Sources of Finance ____________________________________________________________ ________ Long Term Sources of Finance - Finance required to meet Capital Expenditure - Also, known as Fixed Capital Finance Short Term Sources of Finance - Finance required to meet day-to-day
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78 Part 1 Overview Comparing ROE and ROA Both ROA and ROE measure profitability. Which one is more useful for comparing two companies? Why? 9. Ratio Analysis Consider the ratio EBITD/Assets. What does this ratio tell us? Why might it be mote useful than ROA in comparing two companies? 10. Return on Investment A ratio that is becoming more widely used is return on investment. Return on investment is calculated as net income divided by long-term liabilities plus equity. What do you think return
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the company’s operations and financial condition. As part of your answer, use the extended Du Pont equation to highlight the key relationships. 3. Recognizing that you might want to revive your opinion later, does it appear, based on your analysis to this point, that the bank should lend the requested money to Garden State? Explain. Table 3 CommonSized Balance Sheets for Years Ended December 31 1990 1991 1992 Assets: Cash and marketable securities Accounts receivable Inventory
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An analysis was conducted on the financial statements of Custom Snowboards, Inc. for consideration of a 5-year-loan with our institution. Financial statement line items, risk assessments, and ratios were all examined with pertinent items that need to be considered are included in this report, and if granted the loan, can track the progress of the company’s ability to repay the loan. The financial statement line items of Custom Snowboards, Inc. were analyzed focusing on areas that were influential
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INTRODUCTION OVERVIEW: Today India is on a threshold of massive development, thanks to the various initiatives taken by the Govt. of India over the last 10 years or as we call it the Dawn of the era of liberalization. The economics policies have been liberalized time and again to accelerate the process of industrial growth. The government is making constant efforts to encourage the entrepreneurs by providing the climate conducive for development and growth. as a result of which various
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UNIVERSITY OF INFORMATION TECHNOLOGY & SCIENCES Department of School of Business Term Paper On Topic: Bond Market In Bangladesh . Course Code :FIN-361. Course Title :Corporate Finance . Submitted To : MD.Nazmul Hasan. Faculty, School of Business, University of Information Technology & Sciences Submitted By : NAME ID Nazibur Rahman : 08410105 Abdullah- al
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user, focus on the cash flow and the creating cash capacity of enterprise. The statement of cash flow has become one of the main financial statements of every enterprise. Because the statement of cash flow demonstrates the ability of creating net cash flow of enterprises and reveals the liquidity of enterprise’s asset more clearly, helping the users provide object evaluation of overall financial situation. However, a series of simple initial data which statement of cash flow offered still not helpful
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Question 1–18 19–32 33–44 45–78 79–84 85–120 Sample Examination Structure Topic Ethical and Professional Standards Quantitative Analysis Economic Analysis Financial Statement Analysis and Corporate Finance Portfolio Management Asset Valuation Total Percent 15 12 10 28 5 30 100 Minutes 27 21 18 51 9 54 180 QUESTIONS 1 THROUGH 18 RELATE TO ETHICAL AND PROFESSIONAL STANDARDS AND ARE ALLOCATED 27 MINUTES. 1. According to the CFA Institute Standards of Practice Handbook, insider trading is
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prospective financial performance of the company and to critique its liberal credit and inventory policies. The objectives of the case are to: • Introduce and exercise tools and concepts of financial-statement analysis (including financial ratios, break-even analysis, and cash-flow statements). • Explore possible definitions of the “financial health” of a company. • Illustrate the linkage between operating policies and financial performance. • Consider the interdependence
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Cash Flows: Assigned Reading: Chapter 4, Class Notes and “Statements of Cash Flows: Three Examples” 1. What information is contained in the cash flow statement? What insights about a company can be gained by using this information? 2. Based on the statements of cash flows provided for the three undisclosed companies, form initial judgments on each company’s economic situation. The following questions provide some direction for this analysis. a. What clues do the cash flow statements
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