Question

Explain how a firm that expects to need funds during the coming year might make sure...

Explain how a firm that expects to need funds during the coming year might make sure that the needed funds will be available.

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

The company can raise funds from the following ways to be made available next year:

1. It can increase its reserves by having a stringent dividend policy i.e. to pay lesser dividends and retain to meet the funds requirement.

2. It can also raise funds through selling some its held to maturity investments or liquidate investments that have held to fund certain projects.

3. The firm can also used external financing if the internal sources of finances do not suffice. External financing includes taking bank loans, issuing common stock and other forms of debt.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
With firm commitment underwriting, the issuing firm is sure of the total amount of funds it...
With firm commitment underwriting, the issuing firm is sure of the total amount of funds it will receive at the time of offering because the underwriting firm buys the entire issue and assumes full financial responsibility. And explain the reason. a. True b. False
ABC Inc. expects to have the following data during the coming year. What is the firm's...
ABC Inc. expects to have the following data during the coming year. What is the firm's expected ROE? Assets $160,000 Interest rate 5% Debt/Asset ratio 70% Tax rate 40% EBIT $25,000
Explain how a child develops object permanence during Piaget’s Sensorimotor Stage. Make sure to fully explain...
Explain how a child develops object permanence during Piaget’s Sensorimotor Stage. Make sure to fully explain the concept object permanence in your answer. Is object permanence related to the development of an attachment to one’s primary caregivers (in most cases the parents)? Explain.
Why might a developing firm need to make changes in their operations strategy to remain efficient?...
Why might a developing firm need to make changes in their operations strategy to remain efficient? For example, what types of changes would need to be made in product design, process design, inventory, capacity, etc.? How do the various operations decisions interrelate with one another?
As a corporate treasurer who is unsure how soon funds will be needed, which type of...
As a corporate treasurer who is unsure how soon funds will be needed, which type of money market investment might you prefer? Explain the trade-offs. Would your answer differ if you had a definite time period during which you would not need the money? Explain.
How might Piaget have explained the emergence of make- believe during the preschool years? How would...
How might Piaget have explained the emergence of make- believe during the preschool years? How would Erikson explain it?
if a firm has discounts available and would need to borrow funds to pursue the discounts,...
if a firm has discounts available and would need to borrow funds to pursue the discounts, should it do so? Why or why not?
A non-profit clinic expects to have 9000 visits in the coming year & has the the...
A non-profit clinic expects to have 9000 visits in the coming year & has the the following cost structure: -revenue per visit-$80 -variable cost per visit-$20 -fixed costs-$150,000 a) construct the clinic's base profit & loss statement? b) what is the clinic's breakeven number of visits? c)What volume (number of visits) is needed to make a profit of $100,000?
The term "additional funds needed (AFN)" is generally defined as follows: a. Funds that a firm...
The term "additional funds needed (AFN)" is generally defined as follows: a. Funds that a firm must raise externally from non-spontaneous sources, i.e., by borrowing or by selling new stock to support operations. b. The amount of assets required per dollar of sales. c. A forecasting approach in which the forecasted percentage of sales for each balance sheet account is held constant. d. Funds that are obtained automatically from routine business transactions. e. The amount of internally generated cash in...
Aberwald Corporation expects to order 126,000 memory chips for inventory during the coming year, and it...
Aberwald Corporation expects to order 126,000 memory chips for inventory during the coming year, and it will use this inventory at a constant rate. Fixed ordering costs are $200 per order, the purchase price per chip is $25, and the firm's inventory carrying costs is equal to 20% of the purchase price. (Assume a 360-day year.) Refer to Scenario: Aberwald. If Aberwald holds a safety stock equal to a 30-day supply of chips, what is Aberwald's minimum cost of ordering...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT