College of banking and financial studies department of professional

Don't use plagiarized sources. Get Your Assignment on
College of banking and financial studies department of professional
Just from $13/Page
Order Now

Case Scenario

Rashid and Khalid both work for XYZ Inc. (a Small and Medium Sized Enterprise). Rashid  works as a clerical assistant in the Accounting Department, and Khalid  works as a packager in the Shipping Department. During their lunch break one day, they began talking about the developments in their company. Khalid  complained that he had always worked hard trying not to waste packing materials, efficiently and cost-effectively performing his job. In spite of his efforts and those of his co-workers in the department, the firm’s stock price has declined nearly OMR 1 per share over the past 10 months. Rashid  indicated that he shared Khalid ’s frustration, particularly because the firm’s profits had been rising. Neither could he understand why the firm’s stock price was falling as profits rose. Rashid  indicated that he had seen documents describing the firm’s profit sharing plan under which all managers were partially compensated on the basis of the firm’s profits. He suggested that maybe it was profit that was important to management, because it directly affected their pay. Khalid said, “That doesn’t make sense, because the stockholders own the firm. Shouldn’t management do what’s best for stockholders? Something’s wrong!” Rashid  responded, “Well, maybe that explains why the company wasn’t concerned with the stock price. Look, the only profits that stockholders receive are in the form of cash dividends, and this firm has miserly paid dividends during its 2-year history. We as stockholders therefore don’t directly benefit from profits. The only way we benefit is for the stock price to rise.” Khalid said, “That probably explains why the firm is being sued by state and federal environmental officials for dumping pollutants in the sea. Why spend money for pollution control? It increases costs, lowers profits, and therefore lowers management’s earnings!”

 

It was also identified that the firm has taken bank loan from two different banks, one an investment bank and another a retail bank. The loan instalments have been piled up since 6 months and further non-payment of the loan instalment could adversely affect the company’s reputation. The present debt equity ratio is 4 : 1 (ie debt is four times to equity). The firm’s management is also considering venture capital to improve its present capital structure and payoff the existing bank loans.

 

 

 

 

LO 1 : Understand finance theory as it applies to corporate financial decisions

Task 1

LO1 – Assessment Criteria 1.1: (P, M1, D2)

Compare and contrast wealth  maximization and profit maximization

To achieve pass, you have to compare and contrast the wealth maximization and profit maximization approaches of the discussed firm.

To achieve a M1, give your effective judgements advocating the profit versus wealth maximization approach of the discussed firm.

To achieve a D2, demonstrate autonomy while evaluating the scenario.

 

Task 2

LO1 – Assessment Criteria 1.2: (P, M2, D3)

Discuss the implications of the separation of ownership and control.

To achieve pass, discuss the implications (advantages and limitations) of the separation of ownership and control for XYZ Inc .

To achieve a M2, use a range of sources of information to answer the question.

To achieve a D3, while answering the question, innovation and creative thought should have been applied with proper in text referencing.

 

Task 3

LO1 – Assessment Criteria 1.3: (P, M3, D1)

Explain factors that affect financial planning

To achieve pass, explain factors that affect financial planning of XYZ Inc  from the scenario.

To achieve a M3, use appropriate structure and approach to answer the question.

To achieve a D1, propose realistic improvements against the defined characteristics for success of the firm.

 

Task 4

LO4 – Assessment Criteria 4.1: (P, M2, D2)

Explain the role and functions of various types of banks.

To achieve a pass, explain the role and functions of banks in Oman.

To achieve a M2, use a range of methods and techniques to highlight the roles and functions of banks in Oman.

To achieve a D2, demonstrate autonomy while critically discussing the roles and functions of various types of banks in Oman.

 

Task 5

LO4 – Assessment Criteria 4.2: (P, M2, D2)

Describe factors to be considered in deciding a suitable finance mix for an organization.

To achieve a pass, describe factors to be considered in deciding a suitable finance mix for the chosen organization.

To achieve a M2, use a range of sources of information to explain the combination of finance mix.

To achieve a D2, demonstrate autonomy while critically evaluating combination of finance mix.

 

Task 6

LO4 – Assessment Criteria 4.3: (P, M2, D3)

Describe the importance of internally generated funds.

To achieve pass, describe the importance of internally generated funds of XYZ Inc  from the scenario.

To achieve a M2, use a range of sources of information to answer the question with proper referencing.

To achieve a D3, reflections of innovation and creative thoughts should be made.

 

Task 7

LO4 – Assessment Criteria 4.4: (P, M2, D3)

Describe the financing problems of Small and Medium Enterprises.

To achieve pass, describe the financing problems of Small and Medium Enterprises like XYZ Inc as discussed in the scenario.

To achieve a M2, use a range of sources of information to answer the question with proper referencing.

To achieve a D3, while discussing the problems of SMEs, innovation and creative thought have been applied in the answer.

 

Task 8

LO4 – Assessment Criteria 4.5: (P, M1, D2)

Describe the features of venture capital.

To achieve pass, describe the features of venture capital.

To achieve a M1, give your effective judgements advocating the suitability of venture capital of the discussed firm.

To achieve a D2, demonstrate autonomy while evaluating the scenario.

Calculate your paper price
Pages (550 words)
Approximate price: -

Why Choose Us

Quality Papers

At Myhomeworkwriters.com, we always aim at 100% customer satisfaction. As such, we never compromise o the quality of our homework services. Our homework helpers ensure that they craft each paper carefully to match the requirements of the instruction form.

Professional Academic Writers

With Myhomeworkwriters.com, every student is guaranteed high-quality, professionally written papers. We ensure that we hire individuals with high academic qualifications who can maintain our quality policy. These writers undergo further training to sharpen their writing skills, making them more competent in writing academic papers.

Affordable Prices

Our company maintains a fair pricing system for all academic writing services to ensure affordability. Our pricing system generates quotations based on the properties of individual papers.

On-Time delivery

My Homework Writers guarantees all students of swift delivery of papers. We understand that time is an essential factor in the academic world. Therefore, we ensure that we deliver the paper on or before the agreed date to give students ample time for reviewing.

100% Originality

Myhomeworkwriters.com maintains a zero-plagiarism policy in all papers. As such, My Homework Writers professional academic writers ensure that they use the students’ instructions to deliver plagiarism-free papers. We are very keen on avoiding any chance of similarities with previous papers.

Customer Support 24/7

Our customer support works around the clock to provide students with assistance or guidance at any time of the day. Students can always communicate with us through our live chat system or our email and receive instant responses. Feel free to contact us via the Chat window or support email: support@myhomeworkwriters.com.

Try it now!

Calculate the price of your order

You will get a personal manager and a discount.
We'll send you the first draft for approval by at
Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Homework Writing Services

My Homework Writers holds a reputation for being a platform that provides high-quality homework writing services. All you need to do is provide us with all the necessary requirements of the paper and wait for quality results.

Essays

Essay Writing Services

At My Homework Writers, we have highly qualified academic gurus who will offer great assistance towards completing your essays. Our homework writing service providers are well-versed with all the aspects of developing high-quality and relevant essays.

Admissions

Admission and Business Papers

With Myhomeworkwriters.com, we will help you secure a position at your desired institution. Our essay writing services include the crafting of admissions papers. We will still help you climb your career ladder by helping you write the official papers that will help you secure a job. We will guide you on how to write an outstanding portfolio or resume.

Editing

Editing and Proofreading

Myhomeworkwriters.com has a professional editorial team that will help you organize your paper, paraphrase it, and eliminate any possible mistakes. Also, we will help you check on plagiarism to ensure that your final paper posses quality and originality.

Coursework

Technical papers

My Homework Writers harbors professional academic writers from diverse academic disciplines. As such, we can develop homework writing services in all academic areas. The simplicity or complexity of the paper does not affect the quality of homework writing services.