Finance Policy Assignment Example | Topics and Well Written Essays - 1500 words

finance Policy - Assignment ExampleThe strategic planning manager is entitled to reduce the acquisition sum up so that the firm Alresford could take over Gibson at more profit and at a damage less than the market place price. The firm Alresford aims to take over Gibson ltd at a reduced price, which is less than the market value of the firm in order to obtain profits.c) Determine which of the strategic planning managers suggestions should be undertaken and specify the optimum life of the south division. Advise Alresford ltd. of the maximum amount it should now be prepared to pay for Gibson. The strategic planning managers suggestion of using the Alresfords exile rather than the north divisions transport which could save the transport expenses by $ 600,000 annually settlements in a savings of $ 2,400,000 in four years. Even though such a change would increment the replacement cost by $ 1.6 million, yet such a type of system will result in a savings of $ 800,000 which the firm ca n use for other business restructuring processes.The system of dividend imputation was introduced in Australia in 1987 in order to avoid double appraiseation with respect to the income of a company. Before the knowledgeableness of the dividend imputation in Australia, there was double taxation because the companies paid tax on their earning income and the shareholders also had to pay tax on the dividends at a marginal tax rate, which provided the government double tax on a single companys earnings. Here the difference with respect to dividend earnings if the firm Alresford implemented the Australian dividend imputation system could not be clearly calculated as no provisions with respect to payment of dividend are provided. Therefore, there is no change in calculations with respect to payment of dividend if the Australian dividend imputation system is used. The system of Dividend Imputation allows the shareholders of the firm to obtain more