Cases on Fairdeal Company, Inc., Philippine Export Products Co., Inc. and Rodriguez Security Agency, Inc.

• Main Author: Sarreal, Macario A.
• Format: text
• Language: English
• Published: Animo Repository 1974
• Subjects: Automobiles > Purchasing; Automobile industry and trade > Finance; Business enterprises > Finance; Business Administration, Management, and Operations; Finance
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/113; https://animorepository.dlsu.edu.ph/cgi/viewcontent.cgi?article=6951&context=etd_masteral
• Institution: De La Salle University

Fairdeal Company, Inc. is a finance case. The two finance areas that it covers are the method of financing company cars and the adoption of car plan. It concerns the determination of the cost and advantages of leasing as against outright purchase of vehicles, as well as, the feasibility of converting the Company's policy of free use of cars to a car plan. The student is asked to convert the financial costs of the different alternatives to some common base and then compare and evaluate the alternatives. Essentially, the case leads the students to the use of the present value concepts in evaluating the methods of financing automobile industry and trade—Finance company cars and adoption of a car plan. The implications of the change in Company policy are also cited so that the student will not decide the case purely on the basis of financial feasibility. Philippine Export Products Co., Inc. is another financial case. It covers the determination of the real cost of different short term financing alternatives needed to finance the Company's budgeted sugar inventories. The case also shows the procedures in sugar exports and gives background on the sugar industry's export trading aspects. The student is led to the computation of effective interest rates of different financing sources. In determining what financing mix to avail, the student must calculate the probable financing costs of the different alternatives with full consideration of the commitments involved in each alternative. Optimization in the use of borrowed money in terms of least cost and minimum possible commitments is the objective of the case. Rodriguez Security Agency, Inc. is a business policy case. It is about a small family-owned company dealing in private security service. It illustrates the effects of statutory requirements upon the Company's operation. The student is asked to evaluate the proposed merger agreement, to consider alternatives and decide what course of action the Company should take. The case gives the student a total perspective