We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

Finance - Coursework Example

Comments (0)
FINANCE: Cape E-Distributors LTD (Authors Name) (Institution Affiliation) a) Introduction to the business. Cape E-Distributors LTD Cape E-distributors LTD is a private limited online distribution company involved in the alcohol distribution business. This involves retail and wholesale selling of alcoholic beverages to consumers…
Download full paper
Read TextPreview

Extract of sample

Download file to see previous pages... The only difference however is that we do our business online. This is an advantage to the business as an online presence gives it an increased global presence at the same time helping it minimize operation costs to zero since there are no fixed costs to be paid out such as rent and other utilities. The main reason why I chose this line of business was due to the fact that after intense market research, I found out that there is always a demand for alcoholic beverage all year round. Alcoholics will always drink alcohol whether they have enough income or not. Although lack of income may mean reduced alcohol intake, it does not mean they will completely not drink. It with this conclusion that I decided to start this business as there was going to be steady cash inflows for the business throughout the year. Also, alcoholic drinks being fast moving consumer goods, there will always be a high demand for the products and extensive distribution networks and it is due to this reason that I chose to be a cybermediary as there will always be a demand for the goods and to gain access to a large company. b) Analysis of break even. Break-even point is the level of sales at which profit is zero According to Atrill and McLaney (2011) at break-even point; sales are equal to fixed cost plus variable cost. In analyzing the break even, one normally needs the three pieces of information: Fixed costs, variable costs and average price per unit. Fixed costs are those minimum operating costs in a business that do not change no matter how many units one sells. They include rent, utilities, bank charges among others. Since Cape e- distributors is an online platform, it does not have any fixed costs as per now. Variable costs per unit-These are those costs that vary and depend on sales volumes. Average price per unit; Since you're able to choose exactly where to set your prices. Start by looking at your competition, and how they price their products. Break Even Analysis Formula therefore is: BEQ = Fixed costs / (Average price per unit – average cost per unit) Fixed cost =0 Average price per unit in year 1 is 55 Average cost per unit in year 1 is 11 Substituting into the formula = 0/(55-11) Therefore the break even quantity is zero. All the other break-even quantities for the subsequent years will be zero because there are no fixed costs for our firm. This is due to the fact that it is an online firm hence no operating costs are incurred. c) Analysis of business performance using financial ratios Profitability Ratios They use margin analysis to give an indication of whether a firm is generating enough returns on capital employed. For Cape distributors the gross profit margin is 91%, the net profit margin is 91% while the return on capital employed is 103%.With such high profitability ratios, it means that the firm has really minimized on its costs and the sales are increasing steadily.A high profitability ratio means that the firm is really good at cost controlling Pandey (2008). Liquidity Ratios These are the ratios that show whether a firm is able to meet its short term obligations as and when they occur. I n other words they measure solvency of the firm. For our business, the liquidity ratios calculated are current ratio which is regarded as a test of liquidity for a company. It expresses the 'working capital' relationship of current assets available to meet the company's current obligations. The other liquidity ratio is the creditor ...Download file to see next pagesRead More
Comments (0)
Click to create a comment
Problem Statement The changes in the economic conditions as well as the business requirements of the customers of CCL; it may not be able to sustain its profitability for longer period of time and, hence, may default due to constrained cash flows. Problems/Sub-Problems/Issues Following issues have been observed: 1.
6 Pages(1500 words)Case Study
International Finance
) Cost of Debt (kd) Bank Overdraft 169,800,000 6% Redeemable bond 310,200,000 3.52% Calculation of Cost of debt (kd)  Table 2 Current Market Value (94) Coupon Payment   Dec-11 4 Dec-12 4 Dec-13 4 Dec-14 4 Dec-15 4 Redemption at premium 102     IRR (Pre tax) 4.88% IRR (Post tax) 3.52% Weighted Average Cost Of Capital Table 3 Instrument Market Value (?
14 Pages(3500 words)Coursework
Enterprise Finance Coursework
Long-term finance sources are those that can be repaid over a long time, for more than 12 months depending on the feasibility of the business. Requirement of long-term finance is determined by certain factors. Business nature; assets needed by the business, nature of goods produced; technology type needed to run the business.
8 Pages(2000 words)Coursework
Corporate Finance
The application of probability theory and sensitivity analysis was used in the determination of the acceptability of the investment. When the company’s discounted rates were used, the results of NPV analysis were negative. The results from the application of the simple payback technique indicated that the additional revenues generated from the use of the ALII crane would be able to pay back for the investment in year 9.
8 Pages(2000 words)Coursework
Islamic Finance
Following Islamic precepts in financial transactions are viewed by many as a religious obligation. The ability of an Islamic institution to attract investors successfully may depend not only on the profitability of that institution, but also on the perception that the institution faithfully observes Islamic religious restrictions.
32 Pages(8000 words)Coursework
Housing finance and economics
But after 1970 the picture was changed a lot and the market has faced a rapid change in macro factors. Those are like free trade and markets and more than this the government intervention was also reduced a lot. So after 1970 the market was quite liberalized.
10 Pages(2500 words)Coursework
International Finance Question
This paper discusses the advantages and disadvantages of two options that a firm can exploit as a source of finance. One of these choices is to float an
1 Pages(250 words)Coursework
There are a number of benefits that exist when a company or hospital share its financial information with employees. The first benefit is
1 Pages(250 words)Coursework
Finance accounting solution
Also, the goods sold must match the descriptions given and be of satisfactory quality. If this is not so, the customer has the right to return the goods. Hence, the actions of the student are inappropriate, and they display her dishonesty. If the suits met the student’s
1 Pages(250 words)Coursework
Behavioral finance
In terms of investment decision and portfolio management, it should be expected that cognitive, affective and social factors will have an influence on an investor. This influence is portrayed in terms of saving and
7 Pages(1750 words)Coursework
Let us find you another Coursework on topic Finance for FREE!
Contact us:
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us