Hampton Machine Tool Company Case Anlysis

ALICANTE, Jeah C. BA 141 / WFY CASTILLO, King Q. Professor Debbie Chua GABAT, Melvi D.R.Bun-Pho Wong VALIENTE, Shirley Ann Y. HAMPTON MACHINE TOOL caller I. ground OF THE CASE Hampton instrument Tool Company (HMTC) manufactures tools for aircraft and motorcar industries. It has been founded in 1915 and was establish in St. Louis area. The melody has been successful in the mid and belated 1960s due to sanitary automobile market and flagitious defense spending associated with the Vietnam War. However, HMTCs business slowed down in the 1970s with the withdrawal from the war and the petroleum embargo. Hampton, though, was able to call up in the late 1970s. It has stock-still increased its market shares with the move of military aircraft sales mainly because of its conservative policy and strong working capital position. In September 1979, HMTC asked for an extension of its $1,000,000.00 add until t he end of December of the very(prenominal) year from St. Louis National cant. Also, the telephoner asked for an additional bring of $350,000 that would be repaid December 1979 with interest wander of 1.5%. II. STATEMENT OF THE PROBLEM How should Mr. Jerry Eckwood suffice to Mr. Cowens requests of the renewal of the existing add of $1,000,000.00 and of an additional $350,000.00 loan? III.

POINT OF VIEW AND ASSUMPTIONS Point of View The grouping resolute to use Mr. Jerry Eckwoods perspective because the decision whether to go on the loan or to administer the additional $350,000.00 lies in his hands. Assumptions: Ham! pton mould Tools Company will surely pay the dividends on December. St. Louis lingo will use the loan terms (e.g. month of payment) suggested by HMTC. The equipment to be acquired by HMTC will not affect the occupation operations of the business until the year ends. IV. ALTERNATIVES 1. Extend existing $1,000,000.00 loan and grant additional $350,000.00. Under this...If you want to get a entire essay, order it on our website: BestEssayCheap.com

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