BUSF_A01.qxd

Chapter 12 • The dividend decision 12.2 ‘According to Modigliani and Miller, shareholders are indifferent between a dividend and ...

Problems It has been estimated that the cost of equity is 15 per cent p.a. The directors would be very reluctant to raise outsid ...

Chapter 12 • The dividend decision directors intend that, if the project is undertaken, the cash payoff will all be paid to shar ...

Appendix: Proof of the MM dividend irrelevancy proposition APPENDIX Proof of the MM dividend irrelevancy proposition In the proo ...

Chapter 12 • The dividend decision From equation (A12.5) we can see that the value of the business at time tis depend- ent upon ...

Integrated decisions There are some areas of business finance that do not fall distinctly into the categories of either investme ...

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Management of working capital In this chapter we shall deal with the following: 13.3 The importance of the management of working ...

Chapter 13 • Management of working capital not have to pay immediately on delivery but may be allowed to delay payment for a per ...

The dynamics of working capital Figure 13.1 The working capital cycle for a manufacturing business Each of the boxes in the uppe ...

Chapter 13 • Management of working capital Figure 13.2 The operating cash cycles for a manufacturing business The length of the ...

The dynamics of working capital customers is known as the operating cash cycle.This cycle must be financed by the business. Broa ...

Chapter 13 • Management of working capital Table 13.1Summarised balance sheets of five UK businesses Associated British JD Wethe ...

The importance of the management of working capital inventories very quickly. Tesco plcis quite similar to Wetherspoon in this r ...

Chapter 13 • Management of working capital The use of budgets Control of working capital through the use of detailed plans in th ...

Working capital and liquidity significant and markets for real assets do not seem to be efficient, liquidation would usually be ...

Chapter 13 • Management of working capital Figure 13.3 Financing the business The more permanent elements (non-current assets an ...

Inventories inventories available to customers. The same point is broadly true for all businesses in respect of all working capi ...

Chapter 13 • Management of working capital While the costs of holding inventories tend to be fairly certain, if difficult to qua ...

Inventories Loss of customer goodwill Failure to be able to supply a customer owing to having insufficient inventories may mean ...