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juin [17]
3 years ago
11

Recently when Mosaic Ltd was falling short of funds to meet the floatation costs of its upcoming issue of preference shares, the

company raised deposits from Rosaic Ltd. Which had surplus funds. In the context of the above case: Identify and explain the source of finance being discussed above
Business
1 answer:
slavikrds [6]3 years ago
3 0

Answer:

The floatation cost may be defined as the cost that is incurred or earned by any organization or a firm whenever they issue new stocks in the market. Here in the context, Mosaic Ltd is having shortage of money to incur the cost of the upcoming preference shares that they will issue. So they had raised deposits from another firm, Rosaic Ltd which had a surplus amount of fund. The money raised by Mosaic is a kind of security bond or transfer of money to another party for the safe keeping. The other firm i.e Mosaic Ltd. will return the money to Rosaic Ltd. later.

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If people's trust in the banking system is reduced due to a surge in bank failures, the money expansion resulting from a new dep
rewona [7]

Answer:

b) decline

Explanation:

If people's trust in the banking system is reduced due to a surge in bank failures, the money expansion resulting from a new deposit will <u>decline</u>. This happens because people lost trust and hastily withdrawn their money deposited with the bank.

4 0
2 years ago
Judy works at the headquarters of an online shoe store. She is a member of the advertising team, which is a team within the mark
Alik [6]

Answer:

a.A staff department

Explanation:

  • As the delegation is an assignment of the authority to carry out the specific activities. It is one of the core management concepts however the person remains accountable for the decision making and assignment of duty and the task.
  • Its an important factor that defines the success of the delegation is depended on the Individuals must be prepared for the delegation. The delegation can save time, money and motivate people.
6 0
2 years ago
Explain one method economics and business people use to help them make business decisions?
djverab [1.8K]

Answer:

A cost-benefit analysis involves subtracting the sum of all the business costs from the business benefits.

Explanation:

Business is the act of exchanging goods and services for commercial purposes. The main aim of conducting a business for most people is to increase sales and make profit. In order to do this, there are business decisions that go into the running of business that determine how the business will perform. Most of these decisions if taken into account can lead to overall business success. There are different methods in economics that can aid a business person to make a decision, however, in this case we will consider the cost-benefit analysis as a tool of economics that can be used to make business decisions.

As indicated above, a cost-benefit analysis is a method that businesses often use to arrive at decisions. The analysis is done by first assigning monetary units to all the activities and processes that will go into the business. The total costs are then calculated from all the expenditures that will be incurred in the business. The benefits are then calculated from all the revenue expected to be got from the business. The costs are then subtracted from the benefits. The result can be either zero, negative or positive. A zero result implies that the business will break-even, there will be no losses or profits. A negative value implies that the business will go to a loss thus not advisable to venture in it. A positive result shows that the business will be profitable therefor it would be beneficial to venture into it.

3 0
2 years ago
Corn Doggy, Inc. produces and sells corn dogs. The corn dogs are dipped by hand. Austin Beagle, production manager, is consideri
svet-max [94.6K]

Answer:

1. 6.52 years

IRR = 10.93%

NPV = $9,851.30

4. yes

Explanation:

Payback calculates the amount of time it takes to recover the amount invested in a project from it cumulative cash flows

Payback period = Amount invested / cash flow

$215,000 / $33,000 = 6.52 years

Internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested

Net present value is the present value of after tax cash flows from an investment less the amount invested.  

NPV and IRR can be calculated using a financial calculator

Cash flow in year 0 = $-215,000

Cash flow each year from year 1 to 12 = $33,000

I = 10%

NPV = $9,851.30

IRR = 10.93%

The project is acceptable because the IRR is greater than the cost of capital

To find the NPV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  

To find the IRR using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the IRR button and then press the compute button.  

and the NPV is positive

5 0
3 years ago
The net cash flows of Advantage Leasing for the next 3 years are $42,000, $49,000 and $64,000 respectively, after which the grow
liberstina [14]

Answer:

$863,689.50

Explanation:

The computation of the present value of the terminal value is shown below:

The terminal value at the end of the third year is

=  Third year Cash flows × (1 + growth rate) ÷ (required rate of return - growth rate)

= $64,000 × (1 + 2%) ÷ (8% - 2%)

= $1,088,000

Now its present value is

= terminal value at the end of the third year ÷ (1 + rate of interest)^number of years

= $1,088,000 ÷ (1 + 8%)^3

= $863,689.50

This is the answer but the same is not provided in the given options

3 0
3 years ago
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