Finance essays

Banks serve the vital function of encouraging individuals and institutions to save and to channelize those savings to those individuals and institutions needing to invest in economic and other activities

To calculate the cost of debt, it is necessary to include the long term liabilities. There, it corresponds to the long term debts because their length was superior to one year. Moreover, the deferred tax implies that these taxes are reported on the long term. Then, the provisions are considered as long term liabilities like the pensions liabilities. Finally, bank overdrafts could be considered as long term debts because in the annual report of Premier Foods, each year an important overdraft is reported.