1. Business Organization Green Corporation (GC) is stock corporation engaged in the events management. The major customers of GC are companies engaged in concerts, trade fairs and expositions, weddings, corporate events and seminars in the different events centers in Metro Manila, Clark, Cebu and Davao. Due to the effects of the pandemic, GC would need to increase their capital to give them more funds to survive the economic challenges for the next 2-4 years. The original investors who control more than 50% of the stocks, fear that the company may not survive the pandemic if they did not increase their capital. The Board of Directors identified 3 options below to increase their capital and get additional funds: a. Enter into a joint venture with their competitor Blazing Company (BC). b. To sell additional preferred shares in the stock market. c. To sell additional common stocks in the stock market. Question: I. II. What option shall you recommend to your Board of Directors for the company to take and why did you choose this option? What would be the financial risks if the company chooses this option
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- The president of southern tagalog corporation made this statement in the company's annual report as this is primary goal is to increase the value of our common stockholders equity later report the following announcement the company contributed 1.5 million pesos to the symphony orchestra the spending 500 million pesos to open a new plant at expand operations no profits will be produced by the operation for four years so earnings will be depressed during this period versus what day would have been had the decision been made not to expand letter c the company holds about half of its assets in the form of government treasury bonds and it keeps a this funds available for use in emergencies in the future though stc plans to shift its emergency funds from treasury bonds to common stocks discuss how stc stakeholders might view each of these actions and how the actions might affect the stock priceThe president of ABC made this statement in the company’s annual report: “ABC’s primary goal is to increase the value of our common stockholders’ equity. Later in the report, the following announcements were made:1. The company contributed $1 million to the symphony orchestra in Chicago, IL, its headquarters city.2. The company is spending $800 million to open a new plant and expand operations in South Vietnam. No profits will be produced by the Vietnamese operation for four years, so earnings will be depressed during this period versus what they would have been had the decision not been made to expand in South Vietnam.3. The company holds about half of its assets in the form of U.S. Treasury bonds, and it keeps these funds available for use in emergencies. In the future, though, ABC plans to shift its emergency funds from Treasury bonds to common stocks.Discuss how ABC’s stockholders might view each of these actions and how the actions might affect the stock price.The president of Southern Semiconductor Corporation (SSC) made this statement in the company’s annual report: “SSC’s primary goal is to increase the value of our common stockholders’ equity.” Later in the report, the following announcements were made:a. The company contributed $1.5 million to the symphony orchestra in Birmingham, Alabama, its headquarters city.b. The company is spending $500 million to open a new plant and expand operations in China. No profits will be produced by the Chinese operation for 4 years, so earnings will be depressed during this period versus what they would have been had the decisionbeen made not to expand in China.c. The company holds about half of its assets in the form of U.S. Treasury bonds, and it keeps these funds available for use in emergencies. In the future, though, SSC plans to shift its emergency funds from Treasury bonds to common stocks.Discuss how SSC’s stockholders might view each of these actions and how the actions might affect the stock…
- The president of United Semiconductor Corporation made this statement in thecompany’s annual report:“United’s primary goal is to increase the value of thecommon stockholders’equity over time.”Later in the report, the following announcements were made: a.The company contributed $1.5 million to the symphony orchestra in SanFrancisco, its headquarters city. b.United is spending $500 million to open a new plant in Mexico. No revenueswill be produced by the plant for four years, so earnings will be depressedduring this period versus what they would have been had the company notopened the new plant. c.The company is increasing its relative use of debt. Assets were formerlyfinanced with 35 percent debt and 65 percent equity; henceforth, the financ-ing mix will be 50–50. d.The company uses a great deal of electricity in its manufacturing operations,and it generates most of this power itself. United plans to utilize nuclear fuelrather than coal to produce electricity in the future. e.The…Currently, the world economy is facing an unprecedented challenge due to corona-virus pandemic. In Bangladesh, most of the businesses have been severely affected by corona-virus pandemic and possibly the effects of this virus will last throughout this year. Last year, you started a cement manufacturing business and currently evaluating your capital investment decision for another unit. What will be the effect of corona-virus in your existing business? Will be it a good strategy to invest another unit this year? Provide a detailed explanationAmman Ltd. is a manufacturing company that produces paper cups and plates in Nizwa. The company was able to sustain a reasonable amount of sales in the last two quarters despite the pandemic-crisis during the last year. However, the company has faced some serious liquidity problems due to delayed payment by the customers and lower sales in the first two quarters. Hence, the company is seriously thinking about revising its working capital standards by considering the changes in the market. The finance manager of the company is seeking your help in assessing the Average payment period from the following financial data. The company had an opening stock of OMR 20,000 during the last year and made a total purchase of 48,000 OMR. The company has returned OMR 3000 worth material due to quality issues. During the last year, the business has paid OMR 6000 as wages and OMR 8000 as salaries. The company sold goods for a total amount of OMR 70,000 of which OMR 30,000 sales was on cash basis.…
- Over the semester we have learned that one of the three pillars of our economy is capital expenditures (CAPEX) by private and public businesses. On an annual basis companies allocate a certain amount of their free cash to develop projects that will facilitate company growth and earnings, which will, in turn, improve stock prices and shareholder value. Inside this process is the selection of projects that will be selected among many different available projects. Those companies that make the best choices are the ones that will successfully grow. Those that do not will join the garbage heap of companies that fail. You have that choice as the CFO of Almost Done (AD) Enterprises. Below are the specifics about a project that has been presented. Questions concerning this project follow the specifics of the project. AD, a pharmaceutical company, has developed a new drug that will supposedly cure COVID-19 and provide immunity to the general population. The results are so promising that the…Over the semester we have learned that one of the three pillars of our economy is capital expenditures (CAPEX) by private and public businesses. On an annual basis companies allocate a certain amount of their free cash to develop projects that will facilitate company growth and earnings, which will, in turn, improve stock prices and shareholder value. Inside this process is the selection of projects that will be selected among many different available projects. Those companies that make the best choices are the ones that will successfully grow. Those that do not will join the garbage heap of companies that fail. You have that choice as the CFO of Almost Done (AD) Enterprises. Below are the specifics about a project that has been presented. Questions concerning this project follow the specifics of the project. AD, a pharmaceutical company, has developed a new drug that will supposedly cure COVID-19 and provide immunity to the general population. The results are so promising that the…Aquafin LLC is a company formed in the year 2000 and listed in the Muscat Securities Exchange. The company has primarily engaged in the manufacture of water purifiers and its accessories. Recently, the company has expanded its operation by taking a forward integration move. Adding on, the company is planning to start two more factories in Oman and the Senior manager (finance) Mr. Miyan Ahmed has asked to identify the possible sources of funds for the same. As per the estimate submitted by SMA team (Strategic Management Accounting team), the company requires 100,000 OMR to proceed with the proposed investments. By considering facts and figures given below you are asked to evaluate the Proposed Capital structure by answering the given questions. Abstract of the Capital structure developed by Mr. Miyan Ahmed, ACCA Source of capital Amount in OMR Equity share capital( 5000 shares at OMR 10 each) 50,000 Reserve and surplus 10,0000 12% preference shares 20,000…
- Aquafin LLC is a company formed in the year 2000 and listed in the Muscat Securities Exchange. The company has primarily engaged in the manufacture of water purifiers and its accessories. Recently, the company has expanded its operation by taking a forward integration move. Adding on, the company is planning to start two more factories in Oman and the Senior manager (finance) Mr. Miyan Ahmed has asked to identify the possible sources of funds for the same. As per the estimate submitted by SMA team (Strategic Management Accounting team), the company requires 100,000 OMR to proceed with the proposed investments. By considering facts and figures given below you are asked to evaluate the Proposed Capital structure by answering the given questions. Abstract of the Capital structure developed by Mr. Miyan Ahmed, ACCA Source of capital Amount in OMR Equity share capital( 5000 shares at OMR 10 each) 50,000 Reserve and surplus 10,0000 12% preference shares 20,000 9…The president of Maluwana Pvt made this statement in the company’s annual report: Maluwana’s primary goal is to increase the value of the common stockholders’ equity over time.” Later on in the report, the following announcements were made:a) The company contributed K3.7million to the symphony orchestra in Chelstone, Lusaka its headquarters city.b) The company is spending K750 million to open a new plant in Tanzania. No revenues will be produced by the plant for 5 years, so earnings will be depressed during this period versus what they would have been had the decision not been made to open the new plant.c) The company is increasing its relative use of debt. Whereas assets were formerly financed with 35 percent debt and 65 percent equity, henceforth the financing mix will be 50-50.d) The company uses a great deal of electricity in its manufacturing operations, and it generates most of this power itself. Plans are to utilize nuclear fuel rather than coal to produce electricity in the…Ameer Ltd. is a manufacturing company that produces toys for kids. The company was able to sustain a reasonable amount of sales in the last two quarters despite the pandemic-crisis during the last year. However, the company has faced some serious liquidity problems due to delayed payments by the customers and lower sales in the first two quarters. Hence, the company is seriously thinking about revising its working capital standards by considering the changes in the market. The finance manager of the company is seeking your help in assessing the Average inventory processing period from the following financial data. The company had an opening stock of OMR 10,000 during the last year and made a total purchase of 27,000 OMR. The company has returned OMR 2000 worth material due to quality issues. During the last year, the business has paid OMR 3000 as wages and OMR 6000 as salaries. The company sold goods for a total amount of OMR 50,000 of which OMR 20,000 sales was on cash basis. Average…