Define the immediate effect on funds requirements

Assignment Help Finance Basics
Reference no: EM13725191

QUESTIONS 1- Define each of the following terms.

  1. Operating plan, financial plan
  2. spontaneous liabilities, profit margin, payout
  3. Additional funds needed (AFN; AFN equations capital intensity ratios, self-supporting growth rate.
  4. Forecasted financial statement approach using percent of sales
  5. Exceed capacity; lumpy assets; economies of scale full capacity sales target fixed assets/sales ratios required level of fixed assets

QUESTIONS 2- Name five key factors that affect firm's external finance requirements.

QUESTIONS 3- Supost a firm's makes the policy change listed below. If change means that external, nonspontaneous financial requirements (AFN) will increase indicate by a (+); indicate a decrease by a (-); and indicate no affect or an indeterminate effect by a (0).Think in terms of the immediate effect on funds requirements,

a. The dividend payout ratio is increased.

b. The firms decide to pay all suppliers on delivery, rather than after a 30 day delay, to take advantage of discounts for rapid payment.

c. The firm's b begins offer to its customer, whereas previously all sales had been on cash.

d. The firm's profit margin is eroded by increased competition, although sales hold steady.

e. The firm's sells its manufacturing plants for cash to a contractor and simultaneously signs outsourcing contract to purchase from that contractor goods that the firm formerly produced,

k. The firms negotiate a new contract with its union that lowers its labor costs without affecting its output.

Reference no: EM13725191

Questions Cloud

Performance indicators and inflation and health care costs : "Using Ratios as Performance Indicators and Inflation and Health Care Costs" Please respond to the following:Suggest one (1) key financial ratio that a health care administrator should create a trend analysis for. Suggest one (1) key insight that ..
Earn an annual interest rate : If you have $675,000 saved for retirement how many years will it last if you earn an annual interest rate of 7% and withdraw $46,000 at the beginning of each year? Assume you won $60 million in the lottery. You were given the option of receiving twen..
Research and apply the content from recent articles : Write in 3rd person. For APA writing style formatting see the APA style guide at the resources tab for APA formatting guidelines. APA writing style requires in-text citations and references support the citations on the references page as needed..
Assignment related to products table in sql : Write a SELECT statement that returns these columns from the Products table: The ListPrice column, The DiscountPercent column
Define the immediate effect on funds requirements : Supost a firm's makes the policy change listed below. If change means that external, nonspontaneous financial requirements (AFN) will increase indicate by a (+); indicate a decrease by a (-); and indicate no affect or an indeterminate effect by a ..
Research and apply the content from recent articles : Research and apply the content from recent articles about the elements of computer security. You must cite at least 3-5 sources outside of the class textbook. Write a minimum of 3 to 5 pages for the body of the research paper (using APA writin..
Mutually exclusive-required projects with the cash flows : Suppose your firm is considering two mutually exclusive, required projects with the cash flows shown below. The required rate of return on projects of both of their risk class is 10 percent. Project A s Cash flow from year 0 to year 3: -1000, 400, 40..
Analyze the epidemiological data surrounding : Based on your interview notes from this week's discussion activity, analyze the epidemiological data surrounding the health issue that your agency addresses. Compare the epidemiological data with the information provided by the agency director/rep..
Two donut shops produce identical products : Suppose there are only two donut shops, Brenda's and Julie's. These two donut shops produce identical products. Demand for donuts is given by the function: Q = 75 - P, where Q is the quantity of donuts and P is the price. Suppose that total cos..

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd