Questions 1. If Symonds Electronics Inc. were to raise all of the required capital by issuing debt‚ what would the impact be on the firm’s shareholders? The impact on shareholders can be analyzed by calculating the EPS and ROE of the firm under the alternative scenarios as follows: All Debt With $5‚000‚000 Expansion Current Growth in Revenues Revenues EBIT Interest EBT EBT*(1-T) # of shares EPS Debt Equity Debt/Equity Ratio Return on Equity 15‚000‚000 2‚250‚000 0 2‚250‚000 1‚350‚000 1‚000‚000 1.35
Premium Financial ratios Debt Weighted average cost of capital
The profitability ratio of First Farm Corporation (FFC) shows that the Net Profit Margin of the company improved due to the increasing Net Sales and Net Income in the year 1995. The said improvement is due to the increasing sales in the chicken and feeds business as oppose to the fair increase in the cost of goods and operating expenses. Also‚ this improvement can be directed to the launching of the new line of extruded aquaculture feeds and the company’s entry to the fast food business. Return
Premium Financial ratios Revenue
CORPORATE SOCIAL RESPONSIBILITY AND THE SOCIETY By: saheli chakraborty Introduction Corporate social responsibility (CSR)‚ also known as sustainable responsible business (SRB)‚ or corporate social performance‚ is a form of corporate self-regulation integrated into a business model. Ideally‚ CSR policy would function as a built-in‚ self-regulating mechanism whereby business would monitor and ensure their adherence to law‚ ethical standards‚ and internati onal norms. Business would embrace
Premium Corporate social responsibility Social responsibility Business ethics
[pic] By: Michael Malone Statement of the Problem Rajat Singh‚ a managing director at Hudson Bancorp‚ needs to find a way to rejuvenate the paper check corporation. One main part that needs to be calculated is the appropriate mixture of debt and equity for the firm. The company needs to determine the correct mixture so that they can both minimize the cost of capital and increase the shareholders value. I will analyze the current and future situation of the company‚ trying to find the correct
Premium Stock Stock market Credit rating
MEMORANDUM TO: Richard Sullivan FROM: SUBJECT: Wriston Manufacturing Corporation DATE: June 9‚ 2011 Wriston Manufacturing Corporation (WMC) is faced with a Detroit plant that is no longer viable because of underinvestment‚ labour issues‚ and product-process mismatch. This has lead to low sales figures‚ low return‚ and high burden rates (as calculated by the company). The issues at the Detroit plant will be reviewed and options will be presented. A recommendation to address the Detroit
Premium Net present value Manufacturing Variable cost
type of guarantee to introduce. Subjects Covered: Competitive strategy‚ Corporate strategy‚ Customer relations‚ Customer service‚ Marketing strategy‚ Office equipment‚ Sales & marketing‚ Service management‚ Services. Xerox Corporation Read: Xerox Corporation: The Customer Satisfaction Program Read: Putting the Service-Profit Chain to Work Xerox has overcome a dramatic slide in market share and profitability in its copier business by focusing on meeting its customers’ needs. This case
Premium Customer service Marketing Xerox
LAW (PARTNERSHIP AND CORPORATION) GAMMAD‚ MARY JANE M. (Art. 1833-1836) ARTICLE 1833 Where the dissolution is caused bythe act‚ death or insolvency of partner‚ eachpartner is liable to his co-partners for his share of any liability created by any partner acting for thepartnership as if the partnership had not beendissolved unless: 1.)The dissolution being the act of anypartner‚ the partner acting for thepartnership had knowledge of thedissolution; or 2.)The dissolution being by the death orinsolvency
Premium Partnership Bankruptcy Liquidation
Oracle Systems Corporation Summary Since its formation in California in June 1977‚ Oracle Systems Corporation has grown rapidly to become the world’s largest supplier of database management software. It also offers maintenance‚ consulting‚ training‚ and systems integration services and it is the leader in its industry. But currently‚ its way of revenue recognition has been debated. Under Oracle’s current set of accounting rules‚ Oracle can recognize any revenue they believe will be shipped within
Premium Generally Accepted Accounting Principles Income Revenue
Case: Motor parts Corporation Every company has people who represent them as a president and vice president. These positions are very important‚ well paid‚ some privileges but also have a lot of responsibilities. Motor Parts Corporation is not the exception in regards the organizational structure in where the President Bob Marvin and the Vice president Al Shepherd are the principal characters in this case. There are a lot of important issues to be point in this case as well as many decisions
Premium Vice President of the United States President of the United States
1.0 INTRODUCTION 1.1 OVERVIEW OF THE COMPANY Morelli Electric Motor Corporation manufactures electric motors for commercial use. The company produces three models assigned as standard‚ deluxe and heavy duty. The company uses a job costing system with manufacturing overhead applied on the basis of direct labour hours. The system has been in place with minimum change for 25 years. 1.2 THE CURRENT RISING ISSUE For the past 10 years‚ the company’s pricing has been to set each product’s budgeted price
Premium Costs Variable cost Management accounting