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Svet_ta [14]
3 years ago
8

Many companies secure financing from various sources with various payback periods. Not all funding sources are the same, and in

fact, some can come with a pretty high cost to the firm. These costs could include high interest rates, long payback periods, and increased ownership in the firm which could result in lost control.
Analyze the funding options listed, and determine if the option is usually a short-term or long-term strategy.

a. Line of credit
b. Commercial paper
c. Trade credit
d. Bank load of 10 months
e. Bond
f. Stock
g. Bank load of 20 months
Business
1 answer:
insens350 [35]3 years ago
5 0

Answer and Explanation:

The classification of the funds as a short term or long term strategy as follows;

a. Line of credit = short term financing

b. Commercial paper = short term financing

c. Trade credit = short term financing

d. Bank load of 10 months = short term financing

e. Bond = long term financing  

f. Stock = long term financing  

g. Bank load of 20 months = long term financing

In this way, the classifications of the funds has to be done

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The Wildhorse Company has disclosed the following financial information in its annual reports for the period ending March 31, 20
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Answer: $535,251.25

Explanation:

Cash flow to investors from operating activities is calculated by:

= EBIT + Depreciation - Taxes

EBIT = Sales - Cost of goods sold - Depreciation

= 1,484,000 - 803,000 - 175,000

= $506,000

Taxes = Tax rate * (EBIT - Interest)

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= $145,748.75

Cash flow to investors = 506,000 + 175,000 - 145,748.75

= $535,251.25

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1. Identify and describe two incremental cash flows from a proposed project such as expanding a product line or launching a new
Mazyrski [523]

Answer:

Explanation:

1. Incremental cash flow is the potential increase or decrease in cash flow from an investment this could be positive or negative.

In this case in expanding a product line or launching a new project incremental cash flow could be.

a. Positive: this is the increase in cash flow due to the product launch and expansion.

b. Negative: this is the decrease in cash flow due to the product launch and expansion

2. a. Payback:

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c. Internal Rate of Return(IRR)

Measure the rates of returns for an investment excluding external factors such as risk free rates, inflation e.t.c

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6 0
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a

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Answer:

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