Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Ratio Analysis
The following information concerns two competitors, Albertson Ltd. and Celtic Corp.
Balance Sheets
Albertson
Celtic
ASSETS
Cash and marketable securities
$
79,580
152,594
Accounts receivable
45,477
81,233
Inventory
213,210
47,326
Net capital assets
212,290
222,290
Total assets
550,557
503,443
LIABILITIES AND SHAREHOLDERS' EQUITY
Short-term bank loans
60,146
22,032
Accounts payable
61,276
24,360
Accruals
39,028
20,278
Long-term debt
102,116
143,555
Common shares
201,826
195,408
Retained earnings
86,165
97,810
Total liabilities and shareholders' equity
Income Statements
Sales
771,201
817,666
Cost of goods sold
620,954
671,782
Gross margin
150,247
145,884
Selling and administrative expenses
56,276
66,290
Amortization
27,014
26,632
Miscellaneous expenses
8,919
14,228
EBIT
58,038
38,734
Interest on short-term debt
6,015
2,040
Interest on long-term debt
12,945
14,016
EBT
39,078
22,678
Taxes
8,770
5,632
Net income
30,308
17,046
Calculate the financial ratios for both firms required to answer each of the following questions. Show all your calculations and explain your answer.
a. To which firm would you, as a credit manager or short-term lender, be most likely to approve the extension of short-term trade credit or grant a short-term loan?
b. To which one would you, as a banker, be most likely to extend long-term credit?
c. In which firm would you, as an investor, be most likely to buy shares?
d. What criteria should be applied to assess whether a ratio favourable or not?
Calculate the present values of investment using future values investments returns
If your goal is to generate a portfolio with the expected return of 14.25%, how much money will you invest in stock A. In Stock B.
patterson inc. receives a 16000 payment two years in advance of delivering a completed novel. a five percent interest
How much better off will UF's shareholders be if the firm borrows $20 more and uses it to repurchase stock?
The opportunity cost of capital is 10.3 percent. Calculate the NPV of each choice and suggest when should Predator sell the company?
As you are the finance manager of Aussie Biscuits you are worried that the recent significant appreciation of the Australian dollar may continue in the near future and you are considering whether this MYR position should be hedged or not.
irrnpv. consider this project with an internal rate of return of 13.1 percent. should you accept or reject the project
Now assume that short sales are not allowed. (What does this mean for portfolio weights?) Suppose the correlation of returns on the two securities is +1.0, what is the optimal combination of securities 1 and 2 that should be held by the investor w..
RG is currently all equity financed. It has 10,000 shares of equity outstanding, selling at $100 share. The company is planning capital restructuring. The low debt plan calls for debt issue of $200,000 with the proceeds used to buy back stock.
if a firm pays out 30 of its earnings as dividends and has averaged a 20 percent return on assets how quickly can the
large industries bonds sell for 1068.02. the bond life is 9 years and the yield to maturity is 6.0. what must be the
How has the sovereign debt crisis in Europe, and most importantly in Greece, affected Korres's business and financial results?
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd