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Bond covenants might include: (i) An asset covenant. This would govern the company‟s acquisition, use and disposal of assets. This could be for specified types of assets, or assets in general. (ii) Financing covenant. This covenant often defines the type Read More …
The range of stakeholders may include: shareholders, directors/managers, lenders, employees, suppliers and customers. These groups are likely to share in the wealth and risk generated a company in different ways and thus conflicts of interest are likely to exist. Read More …
The Salima company is in the fast foods industry. The following is the company‟s balance sheet for the year ended 31 March 1995: Additional information: 1. The debenture issue was floated 10 years ago and will be due in the Read More …
Westwood Ltd. has projected its working capital for the next 12 months as follows: The cost of short-term and long -term funds per annum is projected at 20% and 25% respectively during the same period. Required: (a) Prepare a schedule Read More …
Timing of investment at Stock Exchange The ideal way of making profits at the stock exchange is to buy at the bottom of the market (lowest MPS) and sell at the top of the market (highest MPS). The greatest problem Read More …
Advantages of Investing in Shares 1. Income in form of dividends When you have shares of a company you become a part-owner of that company and therefore you will be entitled to get a share of the profit of the Read More …
Advantages/functions/case for development financial institutions 1. They provide venture capital 2. They provide facilities for large lending 3. They provide technical expertise and support emerging projects transferable from other sectors of development economies. 4. They are risk capital providers in Read More …
(a) Development banks and specialized financial institutions: – There are some sectors in the economy that may not secure adequate funds from commercial banks for various reasons. (a) May take a long time to realize returns (b) High risk associated Read More …
The Pesa Company Unlimited is using a machine whose original cost was Sh.720,000. The machine is two years old, and it has a current market value of Sh.160,000. The asset is fully being depreciated over a twelve-years period. At the Read More …
RITE Ltd. maintains an average monthly balance of Sh.320,000 in accounts receivable throughout the year. The company is in need of additional working capital and is considering two alternative methods of raising it. METHOD 1 Factoring accounts receivable METHOD 2 Read More …