Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Corporate Finance Expert

Attempt all the problems. 

Section-A   

problem1) What is carrying cost and shortage cost? Which policy is recommended if shortage cost is relatively lower than carrying cost and vice versa? Describe the policies followed in maintaining working capital with suitable exs.

problem2) How do you evaluate a proposed credit policy? How does the value of a credit policy change in case the new policy earns a repeat customer? Describe with suitable exs.

problem3) What are the techniques used to accelerate collections in the area of cash management. Describe with a case study.

problem4) What are the various kinds of expansion and contraction policies used by firms? Describe with appropriate ex.

Section-B

Pickles Ltd. produces the single product sold throughout the state of Tamil Nadu. Its profit analysis is given below:

Per Unit( Rs)
Selling Price                        40                       
Variable costs        36                           
Fixed cost               3       -39                       
Net profit per unit               1

Pickles Ltd. has the annual turnover of 4.8 million and an average collection period for debtors of one month. It has conducted a study on entering its neighbouring state Kerala and believed that this will produce an extra sale of 25%. But new business will require a 3 months credit period. Stocks and creditors will rise by Rs.4,00,000 and Rs. 2,00,000 respectively. Cost of financing any increase in working capital is 10 percent

The problem of whether profits increases as the result of expansion into Kerala markets very much rests on whether the existing Tamil Nadu customers also demand more favorable term.

Case problems:                   

problem1) What will be the profit increase in case only new customers take 3 months  credit.

problem2) What will be the profit if all customers take 3 months credit.

Corporate Finance, Finance

  • Category:- Corporate Finance
  • Reference No.:- M93401

Have any Question? 


Related Questions in Corporate Finance

Dell high velocity focused supply chain management case

Dell: High Velocity, Focused Supply Chain Management Case Study· Provide a comprehensive overview including background and analysis (two pages) of the case study. Then answer the following questions (Each answer may be 2 ...

Question 1how can a manager use the strategic analysis of

Question #1 How can a manager use the "strategic analysis of operating income" to determine if a firm has successfully implemented its strategy? Be sure to provide specific examples. Question #2 Consider the following qu ...

Choose concrete languagewhen the us government spent 700

Choose concrete language When the U.S. government spent $700 billion in stimulus funding in 2008, the public had difficulty grasping this amount of money. Zephyr Teachout, an associate professor of law, tried to make thi ...

1 student loan who extends student loans what are the

1. Student Loan. Who extends student loans? What are the characteristics of student loans? 2. Home Equity. What is home equity? Describe how a home equity loan works. 3. Credit Limits. Discuss the two ways financial inst ...

The taskyour assignment is to create a 5-page

The Task Your assignment is to create a 5-page argumentative/persuasive research paper given one of the following options: Option 1. Argue for or against an established theory involving Mergers and Acquisitions or Financ ...

Examine your own communication filterslooking at the same

Examine your own communication filters Looking at the same news story you explored above, list at least ten ways you personally are filtering the information you receive. Consider such factors as your individual experien ...

Assignment company valuationusing the internet or strayer

Assignment: Company Valuation Using the Internet or Strayer databases, research Facebook's Initial Public Offering (IPO) and subsequent financial performance. Based on your research: Write a six page paper in which you: ...

1 what is the difference between a direct quotation of an

1. What is the difference between a direct quotation of an exchange rate and an indirect quotation? 2. Suppose that the euro falls in value relative to the dollar. What is the likely effect on European exports to the Uni ...

Write text for a small business websiteif you were starting

Write text for a small business website. If you were starting your own business, how would you represent your product or services on your website? You can use whatever business you'd like: home decorating, house painting ...

1 what is the average stock market reaction to a a dividend

1. What is the average stock market reaction to: (a) a dividend initiation; (b) a dividend increase; (c) a dividend termination; and (d) a dividend decrease (cut)? Are these reactions logically consistent? 2. What are th ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen