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Internal financing refers to net income plus depreciation less dividends. Internal finance comes from internally generated cashflows. External financing refers to the other sources of funds which are available to the firm from outsiders that is debtors, shareholders and bond holders.
Charles W answered the question on December 27, 2017 at 13:50
- Define the following investment rules. In your definition state the criteria for accepting or rejecting an investment. (a) Payback period (b) Internal rate of return(Solved)
Define the following investment rules. In your definition state the criteria for accepting or rejecting an investment.
a) Payback period
b) Internal rate of return
c) Profitability index
Date posted: December 27, 2017. Answers (1)
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Explain the main basic factors that requires to be taken into account in selecting the best method of financing a plant expansion.
Date posted: December 27, 2017. Answers (1)
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In reference to the stock exchange, explain the meaning of
a. Bear market
b. Bid price
c. Divided yield
d. Going public
Date posted: December 27, 2017. Answers (1)
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Date posted: December 27, 2017. Answers (1)
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Date posted: December 17, 2017. Answers (1)
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Date posted: December 4, 2017. Answers (1)
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Date posted: December 4, 2017. Answers (1)
- Write brief notes on( i) Hire purchase (ii) Credit sale (iii) Effects of goods repossessed on hire purchase transactions(Solved)
a) Write brief notes on
i) Hire purchase
ii) Credit sale
iii) Effects of goods repossessed on hire purchase transactions
b) Fiona Limited bought Motor Vehicle on hire purchase terms. The transactions involved
the following:
i) The cash price Sh.800,000
ii) Hire purchase interest 25%
iii) Deposit 20% of cash price
iv) 5 annual equal installments.
The purchase was effected on 1st January 2015.All payments were made. Depreciation is at a rate of 10% per annum on straight line.
Required:
Asset account (3marks)
Hire purchase company account (4 marks)
Hire purchase interest account (3marks)
C In relation to investment accounting , distinguish the following terms
i) Cum – dividend and Ex – dividend (2 Marks)
ii) Bonus issue and Rights issue (2Marks)
d) ABC Ltd bought sh. 60,000, 10% loan stock of Expo ltd on 1st March 2008 at 90 cum- interest. Interest is payable half yearly on 30th June and 31st December.
Required:
Show the entries in ABC Ltd’s ledger for the year ended 31st December 2008. Ignore income tax. (6 Marks)
Date posted: November 24, 2017. Answers (1)
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Date posted: November 14, 2017. Answers (1)
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Date posted: November 14, 2017. Answers (1)
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(Solved)
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Date posted: October 31, 2017. Answers (1)
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Date posted: October 30, 2017. Answers (1)
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Date posted: October 28, 2017. Answers (1)
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Date posted: October 27, 2017. Answers (1)
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Date posted: October 27, 2017. Answers (1)
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Date posted: October 26, 2017. Answers (1)
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Date posted: October 26, 2017. Answers (1)
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Date posted: October 26, 2017. Answers (1)