Could be used in case a temporary situation arises. 3. Would you rather have a savings account that offered simple interest, or an account that offered compound interest? Why? (3-6 sentences.
Describe at least two reasons for this decision. (3-6 sentences. 2.0 points) 3. Would you rather have a savings account that offered simple interest, or an account that offered compound interest? Why?
9/18/13 Alliance Concrete Executive Summary: Based on available financial data and forecasts, Alliance Concrete should pay the $3million dividend to National as well as invest the full $16million in new fixed assets to assure that there are not shutdowns, as there were in 2004. By paying the dividend and purchasing new equipment Alliance will need to renegotiate with its bank in order to delay any scheduled debt retirement and instead acquire additional debt financing. Doing so will ensure that Alliance maximizes its Return on Equity as well as continue its trend of increasing earnings, which is especially important considering the slowdown in the real estate market. 1. A reduction in the dividend would decrease the need for long-term debt in multiple ways.
• Would need to reduce working capital by $260M • Would need to increase gross margins by 328bps • If growth is so important, then a price raise would likely slow that. The DPO change needed to self-finance is likely too aggressive. I would try to get half through DPO improvements and the other half through debt. This roughly doubles their debt. (But
Mr. Clarkson is willing to increase the amount by a new agreement with Northrup Bank. The cash flow crisis and repayments of short-term debts are the root causes of Mr. Clarkson’s need for additional financing. This report includes financial analysis and recommendation upon the request of Northrup Bank Credit Department. Analysis Using the ratio analysis, basic insights can be gathered about the financial performance of the company. For this analysis, we don’t have the ratios for the industry; thus, we will examine the trends for the years including 1993-1995.
5. Imagine that you are considering moving to a new country and looking for a job there, but you first want to make sure the country has a strong economy. Describe at least three economic factors that you would want to research as evidence of the economy's strength or weakness, and explain how each factor would affect your decision to move there. (4-6 sentences. 3.0 points) The first thing I would look at is the country's GPD, if it’s been growing/steady over the past 10-20 years, I know that it’s a strong and stable economy.
The net present value of taking up job after MBA will increase as he will have more income for the additional number of years he works. Ans 2. Apart from the financial constraints, Ben’s decision to get an MBA can be affected by non-quantifiable factors like : a) His personality traits like risk taking attitude or risk aversion attitude. b) His confidence in getting a good job offer after finishing his degree. c) His inclination towards getting a post-graduate degree in other fields rather than business administration.
Saving can also be for a more general need or purpose, such as three to six months of living expenses or saves for a rainy day. One the most important things we can do for our financial wellbeing is to get in the habit saving. We probably hear about the importance of saving all of the time, but that is because it is so important. Many people look at their finances and become discouraged because they can’t save a whole lot right now. However, anyone can save, and can do so at any point in life.
* A business should focus on increasing strategic advantages. Back then, the main goal of a business was to make a good profit, but today in addition to making a profit, companies pay more attention on ‘time to market’. Project management helps in shortening the product life cycle which makes it an important force of modern business. A product life cycle of 10 to 15 years those days has been compressed to a life cycle of 1 to 3 years. It is said that a delay of 6 months in a project can cause a loss of 33% in product revenue share.
Management can decrease the COGS/Sales ratio in order to increase the effect on cash flow, which will attract more purchases of the stock. If the sales ratio deducts to 10%, the revenue remains the same, while other data like NOPAT, Operating Income and FCF all go up. The equity value ascends. Since the # shares outstanding are constant, which are 271.5, the equity value per share rises as well. If the sales ratio turns into