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Q. Show the Current Liabilities Method?
Forecasting of Current Assets as well as Current Liabilities Method: - As-per to this method an estimate is made of forthcoming period's current assets as well as current liabilities on the basis of factors like credit policy, past experience, stock policy and payment policy of the previous years. First of all such approximation is made for each current asset on the basis of each month and then monthly requirements are converted into yearly requirement of current assets. The approximated amount of current liabilities is deducted from this amount in order to estimate the requirement of working capital. A confident percentage for contingencies may also be added to this amount.
LENDING RATES IN THE CREDIT MARKET One of the crucial decisions involved while extending loans is the lending rate. Intermediaries will base their lending rate decisions on thr
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Which is lower for a given company: the cost of debt or the cost of equity? Explain. Ignore taxes in your answer. The cost of debt is all the time less than the cost of equi
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how do legal consideration affect a firms credit policy
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