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can someone help me, please Scenario Opened in Leeds in 1895, Gershwin Bros Lid manutactures talored and dress unilormis for the military. Now employing 70

can someone help me, please
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Scenario Opened in Leeds in 1895, Gershwin Bros Lid manutactures talored and dress unilormis for the military. Now employing 70 ak illed and sembskilled workers at evir factory and distribution plant in Wortloy, Gershwins are looking to expand their ocerations ovorseas to take advantage of new markets opening up in Fastern Europe and the Balkans. To facilitate their planned growth, the Directors have visited several sutatio sites for a manufacturing and distribution facility overseas. They have agreod that their new factory should be built in Serbia and although the development oosts are potentialy high, the firm believes that to compete successfully for larger contracts in Eastom Eurpoe they need to take the risk of financing and bulding the new tacility, which would have a working life of around 30 years once complete. Although profitable, the company has elected not to pay a cash dividend since 2018 and shareholders are becoming increasingly dissatisfied with the direction in which management appear to be taking the company. As a result, the Directors are seeking to demonstrate the potential increase in shareholder value such a new facility might achieve in the medium term and dispel the fears of shareholders about the risks involved. Questions ( 50 Marks) 1. Outline and explain two measures of return the Directors ahould employ when considering the viability of opening a new production division. What other factors should Financial Managers consider before deciding to go ahead with the new plant? (20 marks) 2. How might the company fund its long term development? What are the advantages and disadvantages to the company and its shareholders of debt and equity funding in this case? (20 marks) 3. With reference to the case study facts and your understanding of dividend policy. explain why the directors may have elected not to pay a cash dividend since 2018 and how this may affect company valuation and their ablity to raise long term finance. (10 marks) Scenario Opened in Leeds in 1895, Gershwin Bros Lid manutactures talored and dress unilormis for the military. Now employing 70 ak illed and sembskilled workers at evir factory and distribution plant in Wortloy, Gershwins are looking to expand their ocerations ovorseas to take advantage of new markets opening up in Fastern Europe and the Balkans. To facilitate their planned growth, the Directors have visited several sutatio sites for a manufacturing and distribution facility overseas. They have agreod that their new factory should be built in Serbia and although the development oosts are potentialy high, the firm believes that to compete successfully for larger contracts in Eastom Eurpoe they need to take the risk of financing and bulding the new tacility, which would have a working life of around 30 years once complete. Although profitable, the company has elected not to pay a cash dividend since 2018 and shareholders are becoming increasingly dissatisfied with the direction in which management appear to be taking the company. As a result, the Directors are seeking to demonstrate the potential increase in shareholder value such a new facility might achieve in the medium term and dispel the fears of shareholders about the risks involved. Questions ( 50 Marks) 1. Outline and explain two measures of return the Directors ahould employ when considering the viability of opening a new production division. What other factors should Financial Managers consider before deciding to go ahead with the new plant? (20 marks) 2. How might the company fund its long term development? What are the advantages and disadvantages to the company and its shareholders of debt and equity funding in this case? (20 marks) 3. With reference to the case study facts and your understanding of dividend policy. explain why the directors may have elected not to pay a cash dividend since 2018 and how this may affect company valuation and their ablity to raise long term finance. (10 marks)

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