Please answer the following questions and all its parts(max 4 parts according to chegg). Failure to do so will result in negative rating. Try answering on a piece of paper if possible and scan it please and i will give good rating. Thanks!

2014 2015 $000 $000 Sales (all on Credit) 37,400 26,720 Cost of Sales 34,408 23,781 Operating Profit 2,992 2,939 Finance Costs (interest payments) 355 274 Profit before taxation 2.637 2,665 2014 $000 2015 $000 5000 $000 Non-current assets 13,362 12.750 Current Assets Inventory 4,600 2,400 Trade Receivables 4,600 2,200 Current Liabilities Trade Payables 4,750 2,000 Overdraft 3.225 1,600 Net Current Assets 1.225 1,000 14,857 13,750 8% Bonds 2,425 2,425 12,432 11,325 Capital and Reserves Share Capital 6,000 6,000 Reserves 6,432 5,325 12,432 12,432 Alfach. 4.6.20 University Exercise Finance. The average variable overdraft interest rate in each year. was solo. The quo bonds are redeemable in 10 years time. A factor has offered to take over the administration of Trade receivables on a non-vecourse basis for an annual fee. of 30 days and x company will save $100000 per year in. administration costs and $350 000 per year in bad debts. A condition of the factoring agreement is that the factor would advance 80% of the face value of neceivables atan annual interest rate of 70% Discuss with supporting calculations, the possible effects on a company of an increase in interest rates and advise the company of steps it should take to protect itself against interest rate risk Evaluate whether the proposal to factor trade neceivables is financially acceptable Assume an Average cost of short-term finance in this part of the question only. (c) Discuss the departure from Andighant Modigliani - Miller proposition using the agency cost theory of capital structure. What is the debt overhang problem? 2018 Most investors would prefer to receive a cash dividend today as opposed to sometime in the future, since a bird in the hand is worth two in the bush? Discuss 2018 2014 2015 $000 $000 Sales (all on Credit) 37,400 26,720 Cost of Sales 34,408 23,781 Operating Profit 2,992 2,939 Finance Costs (interest payments) 355 274 Profit before taxation 2.637 2,665 2014 $000 2015 $000 5000 $000 Non-current assets 13,362 12.750 Current Assets Inventory 4,600 2,400 Trade Receivables 4,600 2,200 Current Liabilities Trade Payables 4,750 2,000 Overdraft 3.225 1,600 Net Current Assets 1.225 1,000 14,857 13,750 8% Bonds 2,425 2,425 12,432 11,325 Capital and Reserves Share Capital 6,000 6,000 Reserves 6,432 5,325 12,432 12,432 Alfach. 4.6.20 University Exercise Finance. The average variable overdraft interest rate in each year. was solo. The quo bonds are redeemable in 10 years time. A factor has offered to take over the administration of Trade receivables on a non-vecourse basis for an annual fee. of 30 days and x company will save $100000 per year in. administration costs and $350 000 per year in bad debts. A condition of the factoring agreement is that the factor would advance 80% of the face value of neceivables atan annual interest rate of 70% Discuss with supporting calculations, the possible effects on a company of an increase in interest rates and advise the company of steps it should take to protect itself against interest rate risk Evaluate whether the proposal to factor trade neceivables is financially acceptable Assume an Average cost of short-term finance in this part of the question only. (c) Discuss the departure from Andighant Modigliani - Miller proposition using the agency cost theory of capital structure. What is the debt overhang problem? 2018 Most investors would prefer to receive a cash dividend today as opposed to sometime in the future, since a bird in the hand is worth two in the bush? Discuss 2018