Wednesday, February 19, 2020

Homework Wk 3 Assignment Example | Topics and Well Written Essays - 750 words

Homework Wk 3 - Assignment Example a. US Treasury Bills – Although it is the most liquid short-term security it is considered as risk-free investment. This could lead to potential disadvantage for corporations’ cash management because the yields of these securities are nominal that may not be sufficient for current cash requirements. b. Ordinary Preferred Stock – It allows a company to raise capital without diluting voting rights where the investor is eligible to receive regular dividends. This is in contrast to the nature of pure equity where investor shares risk of firm. This would require regular cash outflow by the firm. c. NCDs – They allow the companies to raise capital from investors by promising returns at specified rate of interest on deposit. NCDs also allow the investor to trade security in stock markets so that investor may exit the option before maturity. But when the corporation is not able to earn regular cash as a result of which its weighted average cost of capital exceeds interest earned then NCDs may become a burden for the corporate. d. Commercial Papers – They are issued by corporations having good credit ratings and market reputation allowing them to raise capital from investors directly without any intermediary (like banks). This reduces the cost of borrowing but requires company to repay investor at own expense. From given information if the cost of carrying per phone is $26 per year and fixed order cost is $340 then carrying cost per phone is approximately 13.08 (that is, 340/26) and total carrying cost for 740 phones is approximately $9676.92 (that is, 13.08 x 740). From the above calculations it is clear that the company should increase order size as the storage cost is cheaper than cost of carry. Also, the optimal inventory policy would require the company to produce 38 phones [since, √ [2 x 740 x (340/26)] = 38.04]. JIT inventory management system allows manufacturer to eliminate

Tuesday, February 4, 2020

Obligation Assessment Essay Example | Topics and Well Written Essays - 3500 words

Obligation Assessment - Essay Example The case is having a history which is stated below. Plaintiffs one and two were married during 1986 and wished to buy a weekend house which they were ready to procure if no excessive repairs were required. They had seen the house Nutford Farm House, Blandford, Dorset. Both the plaintiffs were happy with the house and wished to buy it. Mrs. Marrow conducted the survey on it and sent her report stating that there is no requirement for much repairs and stated some defects were seen in that house. The plaintiffs were willing to buy a house at a cost up to  £170,000, but were not ready to spend any more for repair. Depending and trusting the report forwarded by Mrs. Morrow, the couple decided to buy Nutford Farm House. The asking cost for the house was set at  £175,000, as there was another client ready to buy it offering a price of  £177,500 and the couple bought the property. The situation changed after entering for living in that house. The hide out stated as â€Å"overall dwell ing house to be sound, stable and in good condition† (Stephen, Ralph & Bingham, 1991, p.3) by Mrs. Morrow turned out to be a structure requiring much monetary expense for normal make up. The â€Å"eradication of wood borer in roofing timbers† (Stephen, Ralph & Bingham, 1991, p.3) was actually necessitating â€Å"the roof was due for renewal with felting, rebattening and retiling† (Stephen, Ralph & Bingham, 1991, p.4) and â€Å"minor works of eradicating continued dampness in ground floor walls† (Stephen, Ralph & Bingham, 1991, p.4) was actually shown as â€Å"the first floor timbers needed specialist woodworm treatment and refixing of firring pieces with extensive renewal of floor boarding† (Stephen, Ralph & Bingham, 1991, p.4) also with other works which were not mentioned in Mrs. Morrow’s report of survey. This indicates the fact â€Å"surveyors report negligently failing to disclose defects† (Stephen, Ralph & Bingham, 1991, p.1) whi ch should be trialled under