Speculate on the reason for the apparent inconsistency

Assignment Help Finance Basics

Reference no: EM131318088

1. Commercial loan officers regard profitability financial ratios as very significant. Comment.

2. Which two financial ratios do commercial loan officers regard as the most significant? Which two financial ratios appear most frequently in loan agreements?

3. The commercial loan officers did not list the dividend payout ratio as a highly significant ratio, but they did indicate that the dividend payout ratio appeared frequently in loan agreements. Speculate on the reason for this apparent inconsistency.

Reference no: EM131318088

Questions Cloud

Important operational and financial risks : (1) What are the most important operational and financial risks in this arrangement? (2) How can the company pay its Canadian employees, who presumably want Canadian dollars, when its U.S. customers are paying in U.S. dollars? Furthermore, how can..

What is the current price of hubbard common stock : Hubbard Industries just paid a common dividend, D0, of $1.50. It expects to grow at a constant rate of 3% per year. If investors require a 12% return on equity, what is the current price of Hubbard's common stock?

Can echeloned and direct structures be combined : Discuss uncertainty as it relates to the overall logistical performance cycle. Discuss and illustrate how performance cycle variance can be controlled.

Implication for the optimal capital structure of a corporati : If the only violation of the M&M assumptions is that investors face one tax rate for interest income and another tax rate for equity income, what is the implication for the optimal capital structure of a corporation?

Speculate on the reason for the apparent inconsistency : Which two financial ratios do commercial loan officers regard as the most significant? Which two financial ratios appear most frequently in loan agreements?

What consideration were involve in decision made by company : Provide an example of a company that has made this kind of decision. What considerations were involved in the decision made by this company?

Project coefficient of variation : Assuming that all cash flows are discounted at 10%, calculate the effect of waiting on the project's risk, using the same data. By how much will delaying reduce the project's coefficient of variation? (Hint: Use the expected NPV.)

What is the reward-to-volatility ratio for equity fund : You manage an equity fund with an expected risk premium of 10% and a standard deviation of 14%. The rate on Treasury bills is 6%. Your client chooses to invest $60,000 of her portfolio in your equity fund and $40,000 in a T-bill money market fund. Wh..

How does the quest for quality affect logistical operation : How does the "quest for quality" affect logistical operations? Does the concept of total quality have relevancy when applied to logistics?

User Account

All Pages