Reference no: EM132943871
Questions -
Q1. Masonry Ltd estimates that it takes the company 27 days on average to pay off its suppliers. It also knows that it has dyas' sales in inventory of 64 days days' sales outstanding of 32 days.
a) If the cash conversion cycle of the industry, on average, is 75 days, does Masonry manage their working capital good? Explain your answer by comparing the cash conversion cycle of Masonry's and compare it with the industry
b) Assume you are the CFO of Mansory, explain your strategy to improve Mansory's cash conversion cycle!
c) Explain the implemented strategy to improve cash conversion cycle in your current company you work with!
Q2a. PT Kreasi Nusantara plans to re-structure its capital due to the demand of some shareholders who would with draw their shares from company's equities. To maintain a level of total assets, the company should either increase long-term debts or issue common shares to other shareholders (could be through private placement or initial public offering). Using 2 theories of capital structure, explain how does PT Kreasi Nusantara re-structure its capital!
2b. Discuss why the dividends payment process is much simpler for private companies than for public companies! Use an example of your current company you work with!
3a. A manufacturing company of consumer products that is based in Japan is considering entering new market in a Latin American country by exporting its products for sale there. Explain various risks it faces from expanding its market! Provide an example of each risk explained
3b. Hellenistic Cruise is purchasing three new cruise ships to build sequentially. The first ship will commence construction today and take one year to build. The second will then be started. Hellenistic Cruise can cancel order for a given cruise ship at any time before construction begins for a small fee. Explain the real options should be considered in this situation!
3c. Explain how a company manage its risk to face a global pandemic, such as Covid19, currently!
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Does masonry manage their working capital good
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