Wordpress themeseotakipçi satın alyol kapanıevden eve nakliyateskişehir temizlik şirketleriseowordpress en iyi seo eklentilerikartal antika eşya alanlarpuro satın alwoocommerce baselBeard Transplantizmir saç ekimiistanbul evden eve nakliyatimplantbebek mağazası

Affordable Assignment Experts Help Online – QualityAssignmentHelp STRATEGIC FINANCE AND DECISION MAKING assignment help - Affordable Assignment Experts Help Online - QualityAssignmentHelp

    Project Description

    For all finance assignment help , business assignment help and statistics assignment help please contact service@qualityassignmenthelp.com

    Please UPLOAD your requirement here

    Finance assignment help

    Financial Management:

    SMEs in Oman are facing the problems relating to finance. These entities find it hard to obtain the short term and the long term credit facilities. (Carbo-Valverde, Rodriguez-Fernandez, & Udell, 2009). The banks and financial institutions often do not provide loans and credit facilities to the SMEs or provide it with strict regulations and conditions. This causes these entities to be at negative position because they are always finding it difficult to pay their interest and loans back to the banks and institutions. (Czarnitzki, 2006). Due to the lack of experienced personnel and executives, these entities might face the issues regarding the working capital management. These entities find it hard to fulfil the cost of capital requirements because of the lack of expertise.

    1. Human Resource Management:

    The SMEs often do not have managerial and executive management experience. There is also lesser knowledge about management of the human resource. This causes the inefficiency of labor and work force. (Heneman, Tansky, & Camp, 2000)

    1. Operations Management:

    The SMEs also face issues in their operations. Major issues include the problems regarding outsourcing of different operations, lack of knowledge of latest techniques and technologies. (Quayle, 2002).

    1. Marketing Management:

    SMEs in Oman are facing marketing issues like inefficiency in identifying the prospective markets and the strategies to target those markets. The managers and executives do not have proper marketing knowledge. Therefore, proper marketing budget is not allocated and appropriate marketing strategies are not implemented. (Van de Vrande, De Jong, Vanhaverbeke, & De Rochemont, 2009).

    These inefficiencies and issues collectively make the growth of the SMEs very much slower. To overcome these issues and challenges regarding the growth of SMEs, following measures can be suggested.

    SMEs should try to achieve appropriate corporate management knowledge. Required skillset should be obtained by the managers of the SMEs. The management of the SMEs should be assigned to the qualified and experienced personnel. These steps will ensure the implementation of the proper strategies in the finance, human resource, marketing and operations aspects of the entities. The right amount of finance obtained from the right source at an appropriate cost will enable the entity to continue its operations without difficulty. Smooth and efficient operations will help the entity to grow further and skilled human resource will make the smooth and efficient operation possible. Appropriate marketing strategies and marketing budget will allow the entity to advertise and market its products and services to the prospective markets and enable it to grow faster.

    Although the government of Oman has established the financial support for the SMEs, however, the same is not sufficient for the industry. The government of Oman should provide finance to the SMEs free of cost or at a reduced and low cost and the finance should be long term in order to ensure that the SMEs don’t face the pay back difficulties. The government should provide the training to the managers of the SMEs regarding the management of the finance, operations, human resource etc. The government should not treat the actions of support to SMEs as an expenditure instead as an investment because the improvement will be beneficial for the economy and the country in the long term.


    Tambunan, Tulus. (2008). SME development, economic growth, and government intervention in a developing country: The Indonesian story. Journal of international entrepreneurship, 6(4), 147-167.

    Carbo-Valverde, Santiago, Rodriguez-Fernandez, Francisco, & Udell, Gregory F. (2009). Bank market power and SME financing constraints. Review of Finance, 13(2), 309-340.

    Czarnitzki, Dirk. (2006). Research and development in small and medium‐sized enterprises: The role of financial constraints and public funding. Scottish journal of political economy, 53(3), 335-357.

    Quayle, Michael. (2002). E-commerce: the challenge for UK SMEs in the twenty-first century. International Journal of Operations & Production Management, 22(10), 1148-1161.

    Heneman, Robert L, Tansky, Judith W, & Camp, S Michael. (2000). Human resource management practices in small and medium-sized enterprises: Unanswered questions and future research perspectives. Entrepreneurship: Theory and Practice, 25(1), 11-11.

    Van de Vrande, Vareska, De Jong, Jeroen PJ, Vanhaverbeke, Wim, & De Rochemont, Maurice. (2009). Open innovation in SMEs: Trends, motives and management challenges. Technovation, 29(6), 423-437.


    1. Jadeeda LLC


    1. Pattern for raising additional finance

    Additional finance can be raised through equity and loan. If we follow the current debt equity mix of the company, the additional finance will be raised in the pattern as calculated below;

    Amount to be raised = OMR 1,000,000

    Debt/Equity Mix = 30%/70%

    Amount of debt = 1,000,000 * 30% = 300,000

    Amount of Equity = 1,000,000 * 70% = 700,000

    Retained earnings = 210,000

    Amount of equity to be raised = 700,000 – 210,000 = 490,000


    Amount of debt to be raised

    At 10% = 180,000

    At 16% = 120,000 (Beyond 180,000)



    1. Post Tax Average Cost of additional debt


    Post tax cost of debt = I (1-T)


    Post tax cost of debt of 180,000 = 10% (1-50%) = 5%

    Post tax cost of debt of 120,000 = 16% (1-50%) = 8%


    Post tax cost of debt of 180,000 = 180,000 * 5% = 9000

    Post tax cost of debt of 120,000 = 120,000 * 8% = 9600


    Average cost of additional debt = (9000+9600)/300000

    = 18600/300000

    = 0.062 = 6.2%


    1. Cost of retained earnings and Cost of equity

    Cost of equity = [Dividend (1 – g)/Market Price] + g

    For the purpose of calculating the cost of equity, first we need to calculate the dividend. The dividend is calculated below;

    Market Price = OMR 44

    Dividend Payout = 50%

    Dividend Payout = Dividend per share / Earning per share

    Dividend per share = Dividend payout * Earning per share

    = 50% * 4

    = OMR 2

    Now, we calculate the cost of equity from the above given formula;

    Cost of equity = [2 (1-10%)/44] + 10%

    = [2(0.90)/44] + 0.1

    = [1.8/44] + 0.1

    = 0.041 + 0.1 = 0.141

    = 14.1%

    Cost of Retained Earnings is same as the cost of equity.


    1. Overall weighted average cost of additional finance


    Type of FinanceAmountProportionRateWACC
    Retained Earnings210,0000.2114.1%0.0296


    Overall Weighted Average Cost of Additional Finance = 0.1173 = 11.73%

    Project Details

    • Date February 26, 2018
    • Tags Finance assignment help
    Wordpress themeseotakipçi satın alyol kapanıevden eve nakliyateskişehir temizlik şirketleriseowordpress en iyi seo eklentilerikartal antika eşya alanlarpuro satın alwoocommerce baselBeard Transplantizmir saç ekimiistanbul evden eve nakliyatimplantbebek mağazası
    sinop escortizmir escortporno izleistanbul escortizmir escortGaziantep escortşişli escortkartal escortbodrum escortAntalya escortMarmaris escortpornoankara escortistanbul escortistanbul escortizmir escortizmir escorthttps://escortcity.net/betnano girişAnkara çilingironwin girişHacklink satın alçankaya escortAyvalık Escortkütahya escortgümüşhane escortAksaray escortaydın escort