Friday, May 31, 2019

Essay --

Instruments For The Financial Manager Intel is one of the leading companies in the world and amongst the top ranking companies in the Fortune 500 of the world. It was a big blunder on their part but at times minor affairs are overlooked and lead to higher(prenominal) costs. Since the caller of the stature of Intel cannot afford to compromise on its repute it decided to recall all the defected m otherboards and as a result the burden on its income description was very pronounced due to the shipping and re-structuring costs. Although the company is huge and funds are enormous but the catch was that most of their funds were either move elsewhere or they were promptning short on cash flows and the senior financial management had this Herculean task of coming up with the 725 million dollars in order to service this recall. This course of action was the call of the hour and was required to complete this shipment in order to safeguard the name of the company and the absorb of the sh areholders. Due to the commitment of the cash flows elsewhere the company will need to raise an additional sum of 675 million dollars from various sources and the purpose of this research is to come about out the most suitable and apt sources of fund considering the interests of all the concerned parties. As the financial manager for the company I would like to suggest that the coveted levels of funds be raised from a number of sources, which would include raising part of it via equity, through part of accounts receivables, and some of it will have to financed internally. Though the company of this stature can afford borrowing from external sources but why drain a look the funds elsewhere when we can do the same thing internally. Similarly part of it will have to come from o... ...inion the only options available to us are to use a mix of all of these. We should allow for the study chunk to come from the public as equity whereas the partial financing may come from the other ass ets as well as from the trading assets. What matters at the end of the day are that we are able to live up to the name of the company and deliver what we so staunchly promise to deliver. The only way to recover from the blunder made at some point in time is to recover the funds from the sources mentioned earlier on and when the time comes to repay these dues with diligence. As a finance manager I believe that these measures will enable us to sail through this problem with ease and in the longer run we will be able to stand more cohesively if we choose to settle this problem internally rather than going to outside and exposing the company to various other forms of risks.

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