1. Steven has just won a significant amount of money from the state lottery. He has decided to use the funds to create an investment portfolio containing stocks from different industries. Steven has learned financial ratio analysis is a tool that he can use to help make his investment decisions. Some of the companies and ratios are:
South Regional Electric CheapO Burger Quality Software Heavy Duty Machinery
Current Ratio 0.9 1.4 7.1 3.9
Quick Ratio 0.8 0.9 5.2 2.8
Debt Ratio 71% 50% 0% 36%
Net Profit Margin 6.50% 13.20% 26.90% 9%
a. What are the difficulties in comparing the ratios of these companies to one another?
b. Why are the liquidity ratios for the utility and fast food companies so much different from the software and machinery manufacturing company?
c. Would it be advisable for the software company to carry the same debt ratio as the utility company? Why or why not?
d. Make a recommendation to Steven regarding these investment choices. Based on these ratios, what is your advice? If another student makes different suggestions, challenge them to justify their choices.
2. Respond to each of the following questions:
a. Financial managers often view the balances their companies have in Current Assets and Current Liabilities the result of an investment decision. Discuss why these balances can be viewed as “investment” decisions.
b.. Two companies manufacture can openers. Relevant data follows:
Old School Manufacturing, Inc. Hi Tech Manufacturing, Inc.
Degree of Operating Leverage 2.2 5.7
Degree of Financial Leverage 1.5 3.3
Which of these companies is more at risk? Why?
Which of these companies has a lower break-even point? Why?
Discuss what advantages a labor intensive company has over a capital intensive company.
Discuss the advantages a capital intensive company has compared to a labor intensive company.
Discuss how “offshoring” has impacted the leverage question.
3. Respond to each of the following questions:
a. Why is the Time Value of Money (TVM) an essential concept for business decision making? Cite some examples of the types of decisions where TVM concepts are used.
b. Using TVM techniques, calculate the amount of savings you will need to comfortably retire. Be as specific as possible and discuss how you arrived at your conclusion. Justify your rate of return choice
4.Respond to each of the following questions:
a. You have been asked to make a short presentation at your company’s annual capital budget meeting to present an analysis of the strengths and weaknesses of the following capital budgeting selection methodologies: NPV, payback, IRR. Describe how you would respond to this request at the meeting.
b. The senior executives were impressed with your presentation on capital budgeting methodologies. They have asked you to present a follow up discussion regarding the company’s weighted average cost of capital (WACC). Specifically, they want to know how it is calculated and, most importantly, how it should be used. Discuss your responses.
5.Congratulations! Due to your education, skills you have learned, and hard work, you have successfully managed your fledgling start-up company to the point where you are seriously considering an Initial Public Offering (IPO).
Discuss the following questions:
a. What are the purpose, role, and responsibilities of an investment banker?
b. What are the advantages and disadvantages of “going public”?
c. Describe avenues to acquire external financing other than via an IPO.
a. What signals does the initiation and continuance of the dividend payments make to the market?
b. How will dividend payments affect the future growth of the company?
c. Would a stock repurchase (the company buys back its own shares) be a preferable alternative to cash dividend payments?
Why Choose Us
We value our clients. For this reason, we ensure that each paper is written carefully as per the instructions provided by the client. Our editing team also checks all the papers to ensure that they have been completed as per the expectations.
Professional Academic Writers
Over the years, MyEssay.Help has managed to secure the most qualified, reliable and experienced team of writers. The company has also ensured continued training and development of the team members to ensure that it keep up with the rising Academic Trends.
Our prices are fairly priced in such a way that ensures affordability. Additionally, you can get a free price quotation by clicking on the "Place Order" button.
We pay strict attention on deadlines. For this reason, we ensure that all papers are submitted earlier, even before the deadline indicated by the customer. For this reason, the client can go through the work and review everything.
At MyEssay.help, all papers are plagiarism-free as they are written from scratch. We have taken strict measures to ensure that there is no similarity on all papers and that citations are included as per the standards set.
Customer Support 24/7
Our support team is readily available to provide any guidance/help on our platform at any time of the day/night. Feel free to contact us via the Chat window or support email: firstname.lastname@example.org.
Try it now!
How it works?
Follow these simple steps to get your paper done
Place your order
Fill in the order form and provide all details of your assignment.
Proceed with the payment
Choose the payment system that suits you most.
Receive the final file
Once your paper is ready, we will email it to you.
MyEssay.help has stood as the world’s leading custom essay writing services providers. Once you enter all the details in the order form under the place order button, the rest is up to us.
At MyEssay.help, we prioritize on all aspects that bring about a good grade such as impeccable grammar, proper structure, zero-plagiarism and conformance to guidelines. Our experienced team of writers will help you completed your essays and other assignments.
Admission and Business Papers
Be assured that you’ll definitely get accepted to the Master’s level program at any university once you enter all the details in the order form. We won’t leave you here; we will also help you secure a good position in your aspired workplace by creating an outstanding resume or portfolio once you place an order.
Editing and Proofreading
Our skilled editing and writing team will help you restructure you paper, paraphrase, correct grammar and replace plagiarized sections on your paper just on time. The service is geared toward eliminating any mistakes and rather enhancing better quality.
We have writers in almost all fields including the most technical fields. You don’t have to worry about the complexity of your paper. Simply enter as much details as possible in the place order section.