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Shareholders and Creditors
Shareholders And Creditors or bond or debenture holders
Bondholders are lenders or providers of long term debt capital. Usually they will provide debt capital to the firm of the following factors on the strength as:
How would you explain the value of financial planning to friends or family? Which topics will you discuss with children in your life? Which topics do you feel are most imp
Advantages of Floatation of New Shares 1. It facilitates the matter of securities to increase new finance, creation a company less dependent on retained earnings and banks.
1. Find the price of the following bonds. They are all risk-free, and the risk-free rate is 10%. (a) A fifteen-year zero coupon bond with face value $1,000. (b) A three year
Example of Theoretical Value As a result of the purchase of an asset, the income stream will rise by of £1,000 per annum for 25 years. By assuming a discount rate of 20 perce
The average of the industry current ratio was 1.86 for 2004, 0.86 for 2005, and 0.87 for 2006. Lenovo had higher current ratio than the industry average in 2004. At that time, thei
Example of Asset Based Valuation Extracted information from the books of Kent Limited. Current liabilities Bank overdraft Sh. 300,000
Debtors or Accounts Receiver Turnover Formula is as follow: Debtors/accounts receiver turnover = Annual credit sales/Average debtor The ratio signify the number of ti
Valuation of Share A number of parties are interested however in the value of shares and securities and that will include: Company shareholders, vendors and directors of
Objectives or Goals of Business 1. Profit maximization - This is a traditional and a cardinal objective of a business. This is so for the following purpose: To
Shareholders - Measuring Business Performance Shareholders Actual owners are interested in the company's both short and long term survival. For this cause they will need
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