User Account

All Pages

Would you recommend renewing the loan or demand repayment

Assignment Help Finance Basics
Reference no: EM131105959

In 2008, the company paid its suppliers much later than the due dates; also it was not maintaining financial ratios at levels called for in its bank loan agreements. Therefore, suppliers could cut the company off, and its bank could refuse to renew the loan when it comes due in 90 days. On the basis of data provided, would you, as a credit manager, continue to sell to D'Leon on credit? (You could demand cash on delivery-that is, sell on terms of COD-but that might cause D'Leon to stop buying from your company.)

Similarly, if you were the bank loan officer, would you recommend renewing the loan or demand its repayment?

Would your actions be influenced if in early 2009 D'Leon showed you its 2009 projections along with proof that it was going to raise more than $1.2 million of new equity?

Reference no: EM131105959

Questions Cloud

Instead of making the risky decision described : In the previous question, suppose you have the option of receiving a check for $2700 instead of making the risky decision described. Would you make the risky decision, where you could lose $5000, or would you take the sure $2700? What would influe..
Cost of catching the fish : Question 1 Refer to the accompanying figure, which shows the market for fish, to answer the questions that follow. If the government sets a quota of 300 pounds of fish caught per day, then fish will sell for __________ more per pound than the cost..
Differences and similarities between u.s. gaap and i gaap : Briefly describe some of the similarities and differences between U.S. GAAP and i GAAP with respect to the accounting for liabilities.
Company makes a particular decision in the face of uncertain : If your company makes a particular decision in the face of uncertainty, you estimate that it will either gain $10,000, gain $1000, or lose $5000, with probabilities 0.40, 0.30, and 0.30, respectively. You (correctly) calculate the EMV as $2800.
Would you recommend renewing the loan or demand repayment : Similarly, if you were the bank loan officer, would you recommend renewing the loan or demand its repayment?Would your actions be influenced if in early 2009 D'Leon showed you its 2009 projections along with proof that it was going to raise more than..
Develop a risk management plan for a company : Task: You are required to develop a risk management plan for a company of your choice, or for an area of the Registered Training Organisation in which you are studying.  Your risk management plan must include: a detailed stakeholder analysis
A particular stock goes up each day with probability : Suppose you believe that the price of a particular stock goes up each day with probability p and goes down with probability 1- p. You also believe the daily price changes are independent of one another. However, you are not sure of the value of p.
Evidence admission and suppression : Evidence that is suppressed because it was gathered in violation of the Constitution may have a profound impact on the guilt of a defendant. However, the ability to limit what information a juror has access to is becoming increasingly more difficu..
The indianapolis colts and the new england patriots : The ending of the game between the Indianapolis Colts and the New England Patriots (NFL teams) in Fall 2009 was quite controversial. With about two minutes left in the game, the Patriots were ahead 34 to 28 and had the ball on their own 28-yard li..

Reviews

Write a Review

Finance Basics Questions & Answers

  What must the coupon rate be on these bonds

Ponzi Corporation has bonds on the market with 14.5 years to maturity, a YTM of 7.50 percent, and a current price of $1,061. The bonds make semiannual payments. What must the coupon rate be on these bonds?

  The audiology department at randall clinic offers many

the audiology department at randall clinic offers many services to the clinics patients. the three most common along

  Calculation of fifth year cash flow

Calculation of fifth year cash flow if the cash flows shown below have a future worth of 0

  How much should you be willing to pay for the bond

how much should you be willing to pay for the bond? Do not round intermediate steps. Round your answer to the nearest cent.

  Discuss the importance of the calculation and

discuss the importance of the calculation and interpretation of ratios to complete an effective financial ratio

  Identify the three cost components that make up the total

identify the three cost components that make up the total cost to a company of issuing securities. briefly describe

  How much annual income will he need from his employer plan

how much annual income will he need from his employer's plan and from his own planning when he retires? (Show all work.)

  Describe the financial environment at genesis

Describe the financial environment at Genesis.

  Four derivative securities

Discuss and provide examples of at least four derivative securities. Be sure to include the pros and cons of each one.

  Calculate the weighted cost of the capital of this project

Assume the following facts about a firm's financing in the next year. Calculate the weighted cost of the capital of this project.

  How and why does working capital affect the incremental

how and why does working capital affect the incremental cash flow estimation for a proposed large capital budgeting

  Interest rate compounded annually

The ccount offers your 5% interest rate compounded annually?

Free Assignment Quote

Assured A++ Grade

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd