Hershey is larger company than Tootsie. The gap between them is evident in the free cash flow. Hershey is also able to leverage more. The current cash debt coverage ratio for Tootsie is greater implying that the cash flow from operating activities will pay for a higher proportion of current liabilities for Tootsie as compared to Hershey. The cash debt coverage ratio for Tootsie is higher indicating that the operating cash flow can meet a higher proportion of total liabilities.
What is the after-tax cost of debt if the tax rate is 34%? (5 pts) c. Explain what other methods you could have used to find the cost of debt for AirJet Best Parts Inc.(10 pts) d. Explain why you should use the YTM and not the coupon rate as the required return for debt. (5 pts) 2. Compute the cost of common equity using the CAPM model. For beta, use the average beta of three selected competitors.
Company G has prided itself on cultivating relationships with it's suppliers built on honesty, confidence, and allegiance in order to facilitate profits for both parties. However, as popularity may grow for the product so too may the market and suppliers might consider increasing costs, in which case a fixed contract would be discussed. Threat from Substitutes – If the Little Wonder does prosper their may be threats from substitutes from larger companies that are able to produce a similar product on an increased scale thereby reducing it's price and making it difficult for Company G to compete. SWOT Analysis A SWOT analysis has been done for Company G and the outcome is clearly positive. The details of that evaluation: STRENGTHS Dedication from management, employees, and suppliers 1.
Investors find this information lucrative because the more expendable cash a company has the more likely they are to pay out in dividends for the stock holders.. Liquidity Ratios: Current assets are a business's total current assets divided by its total current liabilities. Total Current Asset / Total Current liabilities 1,971,000 / 116,290 16.949 = 16.9 Current Ratio- 16.9:1 or 17:1 (16.9 to 1 or 17 to
Whalen Court is also entering a relatively affluent area attracting what Target considers its preferred customer. The two negative attributes of Whalen Court are the Capital Investment is greater than the Target prototype store and the store itself is a lease arrangement rather than owned outright by Target. However, Whalen Court’s impressive NPV and the affluent customers it should attract override these
Zeus Asset Management 1. What is Zeus’s investment philosophy? Zeus Asset Management Inc. investment philosophy is formulated based on: Ø the belief that superior investment results could be achieved over many years Ø by following a conservaAve, Ø risk-‐averse, Ø quality-‐oriented approach to investment management. 2. Who are Zeus’s primary investors? Zeus's Primary Investors (250 clients) A typical Client Profile High-‐Net worth Individual or insAtuAon Long-‐term investors Risk averse VolaAlity averse Special concerns: taxaAon, distribuAon Aming, liquidity and legaliAes Individual PorNolios , 45% InsAtuAonal PorNolios, 31% Common Trust Funds, 12% InsAtuAonal PorNolio's Investors Mutual Funds, 12% CorporaAons, 47% FoundaAon & Endowments, 49% Insurance Companies, 4% 3.
⦁ E-Drive They have experience in the market. The quality is in the average of the market and. The company also offers an improved production systems and the lead-time is very flexible. The proximity with PSC is a plus. Additionally, the company has a strong reputation in product development.
pref stock is A type of preferred stock with a provision that stipulates that if any dividends have been omitted in the past, they must be paid out to preferred shareholders first, before common shareholders can receive dividends. Sept. 1979 $1.80 Senior convertible cumulative preferred stock July 1980 15% Subordinated debentures Adding $52.5M debt gives Oct. 1980 $1.84 Cumulative convertible preferred stock April 1981 14⅛% Subordinated debtenture Aug. 1981 10¼% Convertible subordinated debenture May 1982 10% Convertible subordinated debenture Sept. 1982 12⅞% Subordinated debenture March 1983 7¾% Convertible subordinated debenture Exhibit 6 Public Sales of
The more scooters the dealership sells, the lower their cost to purchase the merchandise. One advantage of such an incentive is the building of a partnership between Company S and the dealership. The disadvantage is the increased cost to the Company. 2. Increased Profit Opportunities Company S will also increase dealership motivation by providing additional profit opportunities.
Therefore, the organization will have to appeal to other companies by offering lower prices, higher quality product, better transportation cost, and a design to appeal to its consumers. The functional strategy the company will use allows the organization to take advantage of and maximize the use of various resources. Many companies are looking toward cheaper labor, Riordan has set its focus on acquiring a workforce with exceptional skill and a high quality work ethic. The company realizes it is more cost-effective and more efficient to hire knowledgeable employees with the drive to perform jobs at the highest level possible (Gallos, 2003). Riordan will pay higher salaries to employees with high-level skillset to attract and maintain employees with these skills.