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

Assignmentcase study improving e-mail marketing

Assignment Case Study: Improving E-Mail Marketing Response Read the following case study. A company wishes to improve its e-mail marketing process, as measured by an increase in the response rate to e-mail advertisements ...

Practice using voip-if you dont have much experience using

Practice using VoIP:- If you don't have much experience using VoIP, such as Skype or Google Voice, try calling another student or a coworker. Both services are free, have simple sign-up procedures, and include optional v ...

1 differentiate between a us commercial bank and the

1. Differentiate between a U.S. commercial bank and the merchant banks found in other developed countries. How have these differences affected the securities markets in the United States versus those in other developed c ...

Assignmentprompt you have already chosen the company

Assignment Prompt: You have already chosen the company (Nordstrom Inc.) you will use for your final project, and you have started a narrative description of your expansion project into another country. In this milestone, ...

1 evaluate negative online reviewsfind online reviews for a

1. Evaluate negative online reviews. Find online reviews for a product you would like to buy. Which of the reviews infl uences you most? What about these reviews do you find persuasive? Discuss your analysis with a partn ...

Expand your networkto expand your job search you might

Expand your network To expand your job search, you might reach out to people you know. If you haven't already, sign up for a free account on LinkedIn, the professional social networking site. Create your profile and invi ...

Format a letteryou have just finished collecting donations

Format a letter. You have just finished collecting donations for the American Cancer Society. To thank people for donating, you will send individual letters. Using guidelines in the Reference Manual, format your letter. ...

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 a complaint letter to a business ownerthink about a

Write a complaint letter to a business owner. Think about a negative customer service experience you had recently. Write a letter to the business owner or the company's customer service department explaining what happene ...

What are the three ways in which derivatives can be

What are the three ways in which derivatives can be misused? Contrast dollar return and percentage return. Be sure to identify which return is more useful when comparing investments? Compare and contrast options and forw ...

  • 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