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
This method could be misleading, as it accounts for growth twice. The value-driver formula is similar to the FCF method used above, however it acknowledges that growth requires investment and earning a return on that investment (RONIC – return on newly invested capital). If RONIC > WACC, the new investment is adding value to the firm, and vice versa. 3. Equity market value Vs. Equity book value (1960) Equity market value = $36.42/share * 1,851,255 = $67,422,707 Equity book value = $65,219,000 The
(2-4 sentences. 2.0 points) I would prefer to go to a bank and make a loan for funding because I can pay that back over time. The other type of funding I would choose is a small business grant. I would apply for that because that is money I could use to start my business that I don’t have to pay back. d. List at least four operating costs your business might have.
Paying for retirement is likely to be the biggest expense you’ll ever face. By saving today, we can help make a difference in our future. Our savings need to make up the difference if we expect to maintain our current lifestyle in retirement. Additionally, having a saving account means that we will not have to worry about our future or retirement. Once we develop the habit of saving part of income we will find that it comes easier to
* 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.
If you exceed expectations, it will work as an advantage and you can save the extra money. If you earn less, you are on the safe side while making plans for the expenses. 10. Plan for higher expense in future budget When you are planning for the next month’s budget, you need to be conservative about the income, but plan for higher expenses than your spending pattern in the past. This will enable you to have a buffer when you need to cope up with the rising costs or unexpected expense.
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