Long term credit decision, Basic Statistics

Assignment Help:

Long Term Credit Decision

In no more than one typed page, provide a statement of your decision to lend or not lend to this company based on your interpretation of the company's long-term prospects (i.e., long-term viability, solvency, and growth). Research this as you would if you were considering lending $1,000,000 of your own money to this company to be repaid in 10 years. Address the following and be sure to provide a conclusion on your decision on whether to lend to this company:

a. Is the company experiencing favorable or unfavorable leverage?

 b. What are the company's needs for future financing?

c. What are the company's likely sources for payment of interest and principal?

d. How much cushion does the company have in its earnings and cash flows to pay interest and principal?

e. What is the likelihood the company will be unable to meet its financial obligations?

f. How volatile are the company's earnings and cash flows?

g. Does the company have the financial strength to pay its commitments in a period of poor profitability?


Related Discussions:- Long term credit decision

Definition of management accounting, Definition of Management Accounting ...

Definition of Management Accounting According to the Chartered Institution of Control Agency (CIMA), Control Sales is "the procedure of recognition, statistic, build up, researc

Estimate the probability, A football coach recorded in the practice session...

A football coach recorded in the practice sessions how many attempts were needed for a certain player to kick a field goal from the 25-yard line, and got the following numbers 3

Define tension and stress, Tension: When a sequence, place, cable or a man ...

Tension: When a sequence, place, cable or a man is presented tight, the ends of the sequence or place (or wire) pull on whatever systems are connected to them towards the sequence.

Marginal costing , HOW DO U CALCULATE VARIABLE SELLING AND ADMINISTRATIVE ...

HOW DO U CALCULATE VARIABLE SELLING AND ADMINISTRATIVE EXPENSES IF GIVEN MARKETING COSTS ADVERTSING P6000 PER MONTH SALES PERSONNEL SALARIES AND COMMISSION R 80000 PER MONTH PLUS

Find a strategy which replicates the payoff, Rocco works for an internation...

Rocco works for an international arms dealer who has just publicly listed. What with the world being how it is these days, there's money to be made on more than just selling the to

Management accounting, Q. CRSL has a large auditorium which can cater for ...

Q. CRSL has a large auditorium which can cater for 300 people and is ideal for formal balls and functions. The auditorium can also be reconfigured to cater for 100 people. The Sea

Payroll, is about deductions

is about deductions

Define Accrued liabilities , Obligations showing the responsibility to pay ...

Obligations showing the responsibility to pay for solutions or products that have been suffered or obtained but not compensated for by the end of the sales interval.

Calculate the monopoly profits and probability , Each firm in a competitive...

Each firm in a competitive research industry can undertake one project at a constant cost, f = $960 to try and develop a certain new product. The inverse demand curve for the new

STATISTICAL & NUMERICAL METHODS, A and B throw with one dice for a prize of...

A and B throw with one dice for a prize of Rs.11 which is to be won by a player who first throws 6. If A has the first throw, what are their respective expectations?

Write Your Message!

Captcha
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!

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