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    (Original post by Crozzer24)
    How did people argue a for point for q3? Found this very difficult
    High interest, fall in sales could cause them to be unable to pay debt
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    (Original post by shepherd018)
    tbh I'm not to sure how much this will affect you, but i know you get more marks for analysis, what did you write about out of interest??
    I wrote about other sources of finance, why borrowing is successful...
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    (Original post by MrCoolVille)
    High interest, fall in sales could cause them to be unable to pay debt
    Isn't that against the idea of borrowing it all?
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    How many marks is it for a C in BUSS3
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    (Original post by Crozzer24)
    Isn't that against the idea of borrowing it all?
    Yeah my mistake. Write about it being readily available efficiently and banks are willing to lend to them as they pose as less risky(Operating over 50 years)
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    (Original post by MrCoolVille)
    Yeah my mistake. Write about it being readily available efficiently and banks are willing to lend to them as they pose as less risky(Operating over 50 years)
    Yeah but you are right though, because you had to analyse why borrowing all would be good and why should you not borrow at all
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    Spent about 5mins thinking if Thea was a he or she..

    cant aqa just having ****ing john smith owns a wood shop etc
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    (Original post by Crozzer24)
    How did people argue a for point for q3? Found this very difficult
    workout current gearing which was 41.something% and then workout gearing after borrowing the £300 million which was 50%. therefore gearing is at the maximum where a business would be comfortable. this is a point for borrowing. a point against borrowing is that you would have to pay back the £300 million with interest. you could also argue that an alternative to borrowing could be to issue shares. you can workout that you need to sell 171,500,000 (rounded) shares at £1.75 share price to raise the £300 million.
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    (Original post by MrCoolVille)
    Yeah my mistake. Write about it being readily available efficiently and banks are willing to lend to them as they pose as less risky(Operating over 50 years)
    Sounds a much better argument than mine! I wrote about how payback was relatively short so the interest payments may be lower and wouldn't have such a significant effect on cash flown
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    I basically said about HRM problems in the last question and how the company relies upon them for a differentiation in an agressive market, and reduncies could cause demotivation etc
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    Can someone please explain to me how they worked out the ARR for this as I managed to get it completely wrong
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    (Original post by adamupton123)
    workout current gearing which was 41.something% and then workout gearing after borrowing the £300 million which was 50%. therefore gearing is at the maximum where a business would be comfortable. this is a point for borrowing. a point against borrowing is that you would have to pay back the £300 million with interest. you could also argue that an alternative to borrowing could be to issue shares. you can workout that you need to sell 171,500,000 (rounded) shares at £1.75 share price to raise the £300 million.
    Was it right if u said they should use 150m from borrowing and the rest from assets
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    (Original post by Fredthesnail)
    I basically said about HRM problems in the last question and how the company relies upon them for a differentiation in an agressive market, and reduncies could cause demotivation etc
    same!!
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    (Original post by Swag98)
    I didn't include any working out of ARR, Payback e.t.c. for Q3, how much will this effect me?
    you didn't need to workout the investment appraisal calcs for q3
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    Anyone else write in the last question that the work force could potentially go on strike which would occur at peak trading season and cause massive losses in revenue which would put the business at risk of liquidity as the current ratio was very low?

    I also wrote about the risk of entering the new market was high due to fierce competition potentially having systems in place to eliminate the threat of new entrants.(porters 5 forces)

    and my last point was that the proposal would satisfy the corporate long term goal of increasing profitability set by the new shareholders.
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    (Original post by emilyjane17)
    Can someone please explain to me how they worked out the ARR for this as I managed to get it completely wrong
    add up all the cash flow stuff, then minus the 300m investment, divide by number of years (4) then divide by 300m then times by 100, I think that's it, it was around 15%
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    I said that equity from shareholders was dependent on investmnet appraisal in Q 3 especailly as that Xenton (or something like that) wanted a profit growth
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    (Original post by Crozzer24)
    How did people argue a for point for q3? Found this very difficult
    I said that interest rates are very low and although 50% would be relatively high gearing it is worth it, and that it has no risk of takeover from those shareholders if they don't issue more shares.
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    (Original post by Jt18976)
    Was it right if u said they should use 150m from borrowing and the rest from assets
    you couldn't as the current ratio was 0.3:1 which is very weak so you don't have any spare cash in your assets
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    Did anyone else use Porter's generic strategies?
 
 
 
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