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(solved) Assignment on Corporate Finance

   

Added on  2020-10-05

7 Pages1179 Words295 Views
Corporate finance
(solved) Assignment on Corporate Finance_1
Table of ContentsINTRODUCTION...........................................................................................................................1PART 1............................................................................................................................................1A) Cash conversion Cycle...........................................................................................................1B) Major risk of Apple.................................................................................................................2C. Apple Share and Debt.............................................................................................................2PART 2............................................................................................................................................3CONCLUSION................................................................................................................................4REFERENCES................................................................................................................................5
(solved) Assignment on Corporate Finance_2
INTRODUCTIONCorporate finance is consider to be each aspect of finance that are relevant to a businessfirm which includes, capital investments, operations, budgeting and banking (Damodaran,2016). In this report, cash conversion cycle for apple and major risk are discussed. Apart thiscapital budgeting are presented within report to determine the better result. PART 1A) Cash conversion CycleIt is refereed to be a metric that display the total time taken by a company to transfer theirinventory and other essential resources into cash flows from sales to meet basic requirement.This metric takes into account the time needed to sell its inventory, the time required to collectreceivables, and the time the company is allowed to pay its bills without incurring any penalties.In Apple the CCC is calculated to determine the cash flows generated to perform other businessoperation. Formula to calculate cash conversion cycle: CCC=DIO+DSO-DPO In which, DIO stand for days for inventories outstanding.DSO denotes Days of sales outstandingDPO Days payables outstanding. In year 2017 CCC= 9.82+28.21-116.95= (78.92)For year 2018CCC= 20.76+14.30-73.80= (38.74)In analysis of working capital efficiency of apple and its competition Samsung it has beenascertained that Apple have higher retail operation due to which huge cash are generated throughsales so its days of sales outstanding reduces. On the other side Samsung mainly depended ondistribution for its customer electronic operation those require a credit period of respectivepurchase. The inventory turnover is better and driven by effective demand planning and it use of1
(solved) Assignment on Corporate Finance_3

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