Corporate Finance Assignment 1

($372 + $135 + 500) / ($2.21 - ($0.83 + .40)) = 1,028 [+/- 31]

Further, keeping in view the strong competitive environment and fear of “Clones” by others, Intel is constantly required to look for innovative products, which would need more funds for upfront expenditures. In these situations, large cash positions would help Intel to avoid taking loans from outside, and in turn interest costs, by using its own cash balances. A disadvantage of having large cash position would be that cash has an opportunity cost. In other words, Intel could be forgoing profitable investment opportunities. However looking at the data provided in the case, we can see that the cost of holding cash was small as they yield high returns, above 170 bases points above U.S treasury bills, through investing in securities rated above AA. Further, a cash rich company runs the risk of being careless as there may be reduced pressure on the management team to perform better. Observing Intel’s growing performance over a period of time, it seems that currently it has no such problem. However in future, it may become a cause of concern for the company.

* Assuming Dell’s sales will grow at 50% in 1997, how would you recommend that the Company funds this growth? How much capital would need to be reduced and/or profit margin increased if the company were to fund its growth by relying only on internal sources of capital? What steps would you recommend the company take?

This four-credit course is for students who major in finance. By the end of this course,

+ (5% are 450 sec) + (3% are 125 sec) + (2% are 120 sec)

$10,644,800 / $2,271,400 = 4.69 Times Return on Common Stockholders’ Equity (2002) $647,645 / $1,928,960 = 33.58% Return

The CEO of Dynamic Manufacturing was at a conference and talked to a supplier about a new piece of equipment for its production process that she believes will produce ongoing cost savings. As the Operations Manager, your CEO has asked for your perspective on whether or not to purchase the machinery.

Plus fill the rest of the order with 402,s – 3,000 x 0.4 = 1,200

665 0.34 174 216 537 234 122 1.2 0.2 60.4 9.6 0.22 65.0 2,149 554 66.6 2,483 80,300 492 14 23 6 21 15 874 524 12,216 30

1,300 1,200 1,100 1,000 900 800 700 600 500 400 300 200 100 0 0 5,000 10,000 15,000 20,000 25,000

2(X4 + X5 + X6 + X7 + X10 + X11 + X16 + X17 + X18 + X27 + X28) – (X1 + X2 +X3

22 x C-H (412) + 8 x C-C (348) + 2 x C-O (360) + 2 x O-H (463) + 15 x O=O (498)  20 x C=O (805) + 24 x O=H (463)

It can be classified into 2 categories . Internal source or external source of finance . Internal source of finance can be done by using retained profit. It is the profit that the company kept rather than pay it to the shareholders . It is kept in the company for further business expanding purposes . But not all business makes profit , it might not be enough to finance the business expansion . The advantages of choosing this source of finance is that it is cheap because the only cost is to pay shareholders when the company earn profit . It will allow the business to have full control of the business because there are no any new shareholders or partners come in to the company and control the business

= (89.14 + 83.72 + 82.7 + 86.54 + 93.87 + 88.88 + 92.5 + 90 + 97.5) ÷ 9

Second, I will discuss any issues involved related to raising capital in the global market. When a company decides to enter the global market, it is up to management to ensure that the company is ready for such move. When raising capital in the global market, companies may have to deal with global credit facilities. Before global credit facilities decide to do business with a company, the company must first prove that the standing of the company is healthy. The company must be able to show the global credit facilities that the company’s overall financial performance is healthy and in some instances that the financial strength of the parent company is healthy as well. A common issue that a lot of companies wishing to raise capital in the global market may come across is the preparation of financial statements. Financial statements preparation varies from country to country and can be very difficult for some countries to understand or read