Shares in Grenfell cladding maker sink

Shares in the company that made the cladding used on Grenfell Tower have fallen sharply in New York. Arconic, formerly known as Alcoa, fell more than 7% to $23.76 after the firm said it would stop selling Reynobond PE cladding for use in high-rises. A fire on 14 June killed dozens of residents of the west London tower. Arconic said in a statement it was the “right decision because of the inconsistency of building codes across the world”. The US firm supplied Reynobond PE cladding for use in Grenfell despite publicly warning…

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Business Financing Problems

A business needs positive cash flow to make payroll, cover monthly expenses, provide working capital, expand sales and ultimately grow. The more cash flow a company has over and above its expenses the healthier it will be. Most business financing problems occur when there is a lack of cash flow or when the business has taken on too much debt. Not Enough Cash Flow Cash flow is calculated by subtracting total expenses from total income. If the resulting number is positive, the company is turning a profit, and is considered to “be…

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How Do I Figure the Interest Rate on a Loan?

Most loans are advertised with a set interest rate, which can be fixed or variable over the lifetime of a loan. However, some loans are structured such that a fixed dollar amount is loaned at the beginning of the loan period, and another fixed dollar amount is due to service the loan at the end of that period. These loans can be compared with interest-based structures by calculating the interest rate that results in the amount due. 1. Divide the amount of the additional payment by the amount loaned to…

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How Will an Interest Rate Drop Affect Business & the Economy?

To better understand how interest rates affect business and the economy, think about them as a virtual way of putting money into and taking money out of your wallet. When interest rates are high, the cost of mortgage payments goes higher, the cost of financing a business increases, the cost of buying anything on credit increases and investors have high-interest bonds to invest their money at low risk. When interest rates are low, mortgage payments decline, businesses can afford to expand because the cost of their capital is low, consumers…

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What Are Business Finance Concepts?

    Part of your small business success involves how well you grasp the concepts of business finance. The world of business finance involves more than just knowing how to read a balance sheet or how to determine if your business is turning a profit. By gaining an understanding of some broader concepts, you can manage your operation more efficiently and also make wiser decisions throughout the course of your business venture. The Power of Cash Flow Cash flow is simply the amount of cash coming into a business via…

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Types of Bank Accounts & Their Rate of Interest

The term “bank account” is often used to cover many kinds of financial services offered by a bank. To maximize the potential for the services a bank has to offer, it is helpful to understand the types of bank accounts and the rate of interest return that they typically offer. Checking Account A checking account is designed to be the account where most of your regular financial transactions take place, according to the article “Demystification of Bank Accounts” found on the Investopedia website. The federal government does not allow a…

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