net sales were declining. · Decrease in operating income will impact ability to service debt. · Decrease in Net Income will impact earnings per share. Historical Balance Sheet for past 3 years: · Decrease in short-term investments without increase in cash. Short term investments sold to purchase furniture fixtures and equipment. · Decrease in net working capital. · Cash used to increase furniture, fixtures and equipment, not revenue producing items. Increase in furniture, fixtures
Words: 6566 - Pages: 27
Liquidity Ratios- Generally, the higher the value of the ratio, the larger the margin of safety that the company possesses to cover short-term debts. Current Ratio-The ratio is mainly used to give an idea of the company's ability to pay back its short-term liabilities (debt and payables) with its short-term assets (cash, inventory, receivables). The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable
Words: 2581 - Pages: 11
AGRI-CLINIC & AGRI BUSINESS CENTRES 6. LAND PURCHASE SCHEME 7. SCORING MODEL FOR TRACTOR LOANS 8. FINANCING OF SECOND HAND / USED TRACTORS SCHEME 9. FINANCING POWER TILLERS 10. FINANCING FOR COMBINE HARVESTERS 11. SCHEME FOR FINANCING FARM MACHINERY – WHERE TANGIBLE ASSETS ARE CREATED 12. DAIRY PLUS SCHEME FOR FINANCING DAIRY UNITS 13. DAIRY SOCIETY PLUS - SCHEME FOR FINANCING DAIRY SOCIETIES 14. BROILER PLUS 15. SCHEME TO COVER LOANS FOR GENERAL PURPOSE UNDER - GENERAL CREDIT
Words: 3344 - Pages: 14
three-legged stool. The legs are operations, marketing, and finance/accounting. As you, the leader, try to sit atop the stool, it must be balanced so that you can shift your position and sit comfortably. However, if one of the legs of the stool is too short or too long, then the stool is difficult to manage and unstable (http://www.thefullermangroup.com). Here is an example of an unbalanced firm. A firm borrows cash in order to expand its facility and operating capacity. However, sales remain constant
Words: 6635 - Pages: 27
3-month Treasury bills and 30-year Treasury bonds? Assume that the current 3-month Treasury bill rate is 4.34 percent, the 30-year Treasury bond rate is 7.33 percent, and the inflation rate is 2.78 percent. Also, the chief financial officer wants a short explanation should the 3-month real rate turn out to be less than the 30-year real rate. 3 Month Treasury Bill Mean Nominal Yield % Mean Inflation Rate % Inferred Real Rate % 1991 5.42 3.1 1992 3.45 2.9 1993 3.02 2.7 1994 4
Words: 651 - Pages: 3
develops entertainment products, services, and technologies. Additionally, the company engages in the music publishing business, as well as provision of various financial services, including insurance, savings products, loans, leasing, and credit financing services; and a network service business and an advertising agency business. It also involves in research, development, design, production, marketing, sales, distribution, and
Words: 934 - Pages: 4
combined company retained its ability to generate synergies. Dow should proceed with the deal as announced to prevent costly litigations and aim for maximizing long-term shareholder value. To avoid being downgraded to junk status and incurring other concerns of financial distress, Dow should attempt to renegotiate the terms of its financing, particularly its $13 million bridge loan. Table of Contents I. The Firms…………………………………………………...…….p. 3 a. Dow Chemical b. Rohm & Haas
Words: 3832 - Pages: 16
function properly in the association’s capstone courses. Examination Guidelines for Questions i) Question Type The following are guidelines on the type of questions and their approximate weightings: Question Item Multiple-choice questions Short-answer and/or short case-type problems of both a qualitative and quantitative nature ii) Description Questions may take a conceptual approach or they may require technical or
Words: 4207 - Pages: 17
Introduction…………………………………………………………………..………………….. Page 5 1. Ratios…………………………………………………………………………………………. Page 6 2. Evaluation…………………………………………………………………………………… Page 7 3.1. Short term solvency or liquidity ratios Page 7 3.2. Efficiency ratios Page 7 3.3. Profitability ratios Page 8 3.4. Long term solvency ratios Page 8 3.5. Market based investment and other ratios Page 8 Conclusion…………………………………………………………………………………………………………………… Page 9 Bibliography
Words: 2158 - Pages: 9
Debt Versus Equity Financing Debt versus Equity Financing is an interesting subject in that it is one of the most important decisions a company will face when choosing to finance a new project. Debt Financing is a more traditional approach. In Debt Financing a company seeks financing from a financial institution or a private debt through a group of investors in the form of a loan. The loan will have set terms such as interest, repayment schedule, and payment amounts. The company will be obligated
Words: 502 - Pages: 3
