Hampton

Case Context Hampton Machine Tool Company (HMTC) is a apparatus tool manufacturing business which started in 1915 and has been a horse barn confederacy since its establishment. The companys revenues rely heavily on soldiery aircraft and automobile manufacturers within the St. Louis vicinity. During 1960s until end of 1970s, HMTC see highs and lows which were in general due to increases and decreases in production. This is influenced by the Vietnam war, frugal conditions, expansion of trade market and demise of competitors. Though ill circumstances happened, HMTC has successfully survived these problems. This can be attributed to the companys conservative monetary policies. In celestial latitude 1978, Benjamin Cowins, president of HMTC, needed a 1M USD loan to St. Louis National wedge to leveraging stocks of several protester shareholders. The interest rate for the loan was 1.5% to be remunerative periodical and the principal of the loan is to be paid on fa mily 1979. Mr. Jerry Eckwood, Vice President of St. Louis National Bank allowed the loan request because of three reasons: 1) HMTCs submission of projected gross sales and forecasted financial statements; 2) HMTCs credibility as depositor in St. Louis Bank and 3) Mr. Cowins credibility in the business community. However, in September 1979, Mr.

Eckwood stock a letter from HMTC requesting to extend regressment of the loan to December 1979 and a further loan request of 350,000USD for equipment purchases. Point of resume and business Definition The point of view to be interpreted in this shimmy will be as Jerry Eckwood, a creditor. As a creditor, aside from the financial rati! os, one of the about important things to be looked at for a possible borrower is whether they could repay their loan upon the see to it of the loans maturity. As such, the main(prenominal) problem for this face is: Should Mr. Eckwood accept Mr. Cowins proposal regarding the extension service of the original loan and an additional $350,000 loan? Framework The aggroup will...If you want to eviscerate a full essay, order it on our website: BestEssayCheap.com

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