Financial Management for Decision Makers 6th. Edition by Atrill, Peter | 9780273756934 | 273756931 | Holooly

Financial Management

Financial Management for Decision Makers

288 SOLVED PROBLEMS

Question: 4.A.17

A garage has an old car that it bought several months ago for £3,000. The car needs a replacement engine before it can be sold. It is possible to buy a reconditioned engine for £300. This would take seven hours to fit by a mechanic who is paid £15 an hour. At present, the garage is short of work, ...

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The minimum price is the amount required to cover ...

Question: 5.A.13

Can you think what the practical problems with this approach might be? ...

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Subjective judgement is required when assigning an...

Question: 9.RQ.2

‘The business’s dividend decision is really a by-product of its capital investment decision.’ Discuss. ...

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The residual theory of dividends states that divid...

Question: 2.RQ.2

‘The future is uncertain and so projected financial statements will almost certainly prove to be inaccurate. It is, therefore, a waste of time to prepare them.’ Comment. ...

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It is true that the future is uncertain. It is als...

Question: 4.15

What is the internal rate of return of the Chaotic Industries project from Activity 4.2? (Hint: Remember that you already know the NPV of this project at 15 per cent (from Activity 4.12).) ...

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Since we know that, at a 15 per cent discount rate...

Question: 11.12

Centaur plc has five million shares in issue with a market value of £8.40 per share. The company has £14.2 million capital invested and EVA^® for the most recent year was £1.8 million. The required return from investors is 10 per cent a year. What is the percentage contribution to the market value ...

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Assuming no growth, PV of future EVA

^{\circ...

Question: 6.SE.5

Cybele Technology Ltd is a software business that is owned and managed by two computer software specialists. Although sales have remained stable at £4 million per year in recent years, the level of trade receivables has increased significantly. A recent financial report submitted to the owners ...

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Cybele Technology Ltd (a)

Cost...

Question: 5.13

Calculate the standard deviation for the Satellite project. Which project has the higher level of risk? ...

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To answer this activity, the steps outlined above ...

Question: 10.11

The financial statements of Freezeqwik Ltd, a distributor of frozen foods, for the year ended 31 December last year are set out below. ...

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The OCC may be calculated as follows: Number o...

Question: 12.SE.6

Larkin Conglomerates plc owns a subsidiary, Hughes Ltd, which sells office equipment. Recently, Larkin Conglomerates plc has been reconsidering its future strategy and has decided that Hughes Ltd should be sold off. The proposed divestment of Hughes Ltd has attracted considerable interest from ...

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Larkin Conglomerates plc (a)

T...

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