Financial Management for Decision Makers 9th. Edition by Peter Atrill | 9781292311432 | 1292311436 | Holooly

Financial Management

Financial Management for Decision Makers

432 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: 5.5

Zeta Computing Services Ltd has recently produced some software for a client organisation. The software has a life of two years and will then become obsolete. The cost of developing the software was £60,000. The client organisation has agreed to pay a licence fee of £80,000 a year for the software ...

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The four possible outcomes attached to this projec...

Question: 5.A.14

Can you see a problem with producing an average figure? Look back at Example 5.4. What strikes you about the average figure that has been calculated? ...

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An average figure may not be capable of actually o...

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: 3.A.28

Assume that a business has internally generated goodwill that was created in earlier years. If this resource were introduced as a non-current asset with an indefinite life in the current statement of financial position, what would be the effect on ROSF, ROCE and the gearing ratio? ...

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Total assets will increase and equity will also in...

Question: 3.SAQ.1

Both Ali plc and Bhaskar plc operate wholesale electrical stores throughout the UK. The financial statements of each business for the year ended 30 June last year are as follows: ...

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Ali plc and Bhaskar plc (a) To answer this questio...

Question: 3.SE.2

Amsterdam Ltd and Berlin Ltd are both engaged in wholesaling, but they seem to take a different approach to it according to the following information: ...

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Amsterdam Ltd and Berlin Ltd The ratios for Amster...

Question: 2.A.1

Assume that the managers of a business are considering only one option. Could projected financial statements still help them? ...

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Where only one course of action is being considere...

Question: 1.A.3

Can you see why? ...

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As mentioned earlier, shareholder wealth maximisat...

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...

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