Assuming Dell sales will grow 50% in 1997, how might the company finance this growth? Might it be able to finance this growth internally? How much would working capital need to be reduced and / or profit margin increased to achieve internal financing? What steps do you recommend the company take? 5.
Alternatively, if Cypress were to sell its share in Sun Power, it is worth $3,862,600,000 equivalent to $25.29 per share of Cypress in cash. Management may distribute this as a special dividend or capital reduction. The equity of Cypress net of Sun Power is $856,342,000 (from Balance Sheet) or $5.60/Cypress share. However, the market price of Cypress share is $27.37/share comprising $25.29 worth attributed it Cypress’s ownership in Sun Power. This means that the market value Cypress at $2.08/per net of Sun Power.
The average performance of DFA large company value fund has very small difference with crsp cap decile #1. It is a little lower than S&P 500. It means the portfolio is diversified to eliminate unsystematic risk, but tracking error is also exist.The reason of the tiny difference may be timing or security selection. the tiny difference may be timing or security selection. What conclusions can you draw from all this?
Ratio | Formula | Amaon 2013 | eBay 2013 | Debt Ratio | TL/TA | | | In leverage ratio, I choose debt ratio, eBay is 24.6% while Amazon is 54.8%. In this ratio, eBay is lower than Amazon which means eBay has less debt should to pay than Amazon. EBay’s assets are financed more through equity than debt compare to Amazon, illustrated that eBay has a lower risk in operation. In addition, eBay may have more borrowing capacity and financial flexible to enlarge its business than Amazon. Let’s see some profitability ratio to have some in-depth discussion.
17 Inventory Management in Price Cutoffs = 8 If cum. Inventory is more than 8, my bid price is 0.02 less than the other dealers bid price and vice
Without the write-off, earnings per share for the company would have been $1.06. Last year, Ragan, Inc., had an EPS of $4.54 and paid a dividend to Carrington and Genevieve of $63,000 each. The company also had a return on equity of 25%. The siblings believe that 20% is an appropriate required return for the company. Questions: 1.
Operating leases B. Accounts receivable C. Inventory D. Accounts payable 16) Compute the payback period for a project with the following cash flows, if the company’s discount rate is 12%. Initial outlay = $450 Cash flows: Year 1 = $325 Year 2 = $65 Year 3 = $100 A. 3.43 years B. 3.17 years C. 2.88 years D. 2.6 years 17) For the NPV criteria, a project is acceptable if the NPV is __________, while for the profitability index, a project is acceptable if the profitability index is __________.
How does the sales growth rates in recent years compare with the growth in inventory and accounts receivable? What might explain why these rates are similar or different? In the last financial year, preliminary reports indicate that the company managed to generate $42.6 Million compared to the previous year where it generated $35.1 Million reporting an increase of 21.3% in revenue. Inventory grew by 16.9% and account receivable grew by 40.1% from 2005 to 2006. Ceres is a service company and they carry fewer amounts of inventory compared to a typical manufacturing company.
Hertz Corporation (A) Harvard Case Solution & Analysis | Recommend this | | Considering leveraged buyout Hertz in 2005, the complex, high-profile deals, and a good example of best practice in private equity. First of two parts, the Hertz LBO, taking the point of view of Clayton, Dubilier & Rice, the leader of the consortium of private trading shares to buy Hertz from Ford in the auction. Set in the final round of the auction, a pressing issue for the consortium is how to raise your previous bet. Reasonable rates should be based on how many of the private equity consortium could create by improving global operations Hertz, on the one hand, and a more efficient capital structure, on the other. Presents detailed descriptive information on both topics, but does not include detailed financial projections, to be formulated by students or supplied for the purposes of discussion, the teacher.
Should you elect to participate, how much do you plan to contribute annually? 4. Your Charles Schwab investment advisor outlines a variety of investment options, which she believes will offer a better return than the current money market fund. You can invest in any of the following choices, with corresponding current/past rates of return: a. A 5 year Certificate of Deposit yielding 3% APY.