Calculate company discretionary financial needs

Assignment Help Finance Basics

Reference no: EM131488759

Question: This Mini Case is available in MyFinanceLab. Aldagi Corporation is an insurance company, which operates in South Caucasus region. Since 2005, the company has increased its sales in the region and became a leader in health care, property-, and business-risk insurance. As of 2009, it started to build some hospitals and recently its subsidiary company is in charge of the management of three hospitals. Highlights of Aldagi's financial condition from 2009 to 2015 are found in the accompanying table.

To improve its capital condition, Aldagi issued preferred stocks in 2012 and continued to increase capital in the same way until 2015. This gave Aldagi a chance to repay part of its long-term borrowings in 2014 and 2015. From 2016, the corporation will not need any additional long-term borrowings, and the entire sum needs to be repaid from 2021. So, in 2016-2020 long-term debt will be constant. Due to financial and capital conditions, Aldagi did not pay any dividends, but it is currently planning to pay a dividend of $0.5 on each share-the outstanding shares (common and preferred) at the end of 2015 total to $500,000. From 2016 we can assume that Aldagi will pay $250,000 as dividend each year. Based on the information provided

a. Project net income for 2016-2020 using of sales method based on an average of this ration for 2009-2015.

b. Project total assets and current liabilities for 2016-2020 using the percent of sales method and your sales projections from part (a).

c. Calculate company's discretionary financial needs for projected years.

Reference no: EM131488759

Questions Cloud

What is a balanced scorecard : What is a balanced scorecard, and how are information systems used to support it?

Explain how can we best prepare for the impending trends : How can we best prepare for the impending trends if they are continuously changing? Identify the pertinent changes that you might experience.

Competitive advantage or a core competency : Use the VRIO model to appraise whether Nike has a competitive advantage or a core competency in marketing-specifically, in the context of being a "hero maker."

Organization design of multi-business organizations : In 3-4 pages discuss strategy and organization design of multi-business organizations, the mixed-model approach

Calculate company discretionary financial needs : This Mini Case is available in MyFinanceLab. Aldagi Corporation is an insurance company, which operates in South Caucasus region. Since 2005, the company has.

Calculate inpatient gross profit for each product line : Calculate inpatient gross profit (GP) for each product line. What product line is most profitable by dollar amounts and GP percentage?

Discuss why this film is titled-the return : Discuss why this film is titled "The Return". Give at least TWO reasons why this might be the reason for this film.

Business problem in a specific company : Provide an opportunity for students to apply a technology solution to a business problem in a specific company or organization that adds value.

Why is determining abnormal behavior so difficult : Most mental disorders lie on a continuum with "normal" behavior at one end. Why is determining abnormal behavior or a mental disorder so difficult?

User Account

All Pages