(sufficient cash flow to service the obligation)‚ capital (net worth)‚ collateral (assets to secure the debt)‚ and conditions (of the borrower and the overall economy). Five C ’s of Credit (5 C ’s of Banking) www.wikicfo.com¶ 1. Cash Flow 2. Collateral 3. Capital 4. Character 5. Conditions The “5 C’s of credit” or "5C ’s of banking" are a common reference to the major elements of a banker’s analysis when considering a request for a loan. Namely‚ these are Cash Flow‚ Collateral
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George Simmons Friday‚ May 4‚ 2012 International Studies Program – Barcelona Professor Fischer Grupo Damm Final Strategic Recommendation Introduction and Summary of Recommendation Grupo Damm‚ one of the largest beer brewers in Spain‚ is a strong company in a weak home market. Although many opportunities exist for expansion‚ the strongest plan for the company to embark on is an aggressive expansion of its business in the United States. This project will give Damm access to a large consumer
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Summary of Reacquired Franchise Rights It has come to our attention that much of Roman Holiday’s recent revenue growth came from acquisition of franchise right and existing restaurants rather than real growth in the franchise. Management is aware of these issues and may be feeling some pressure to meet growth targets and earnings forecasts. In the following working papers‚ we address this potential issue by reviewing the various accounting treatments for the reacquired franchise rights. We also
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Introduction: The case “Debt Policy at UST Inc.” deals with the progressively lowering growth and the company’s board decision to borrow up to $1 billion over five years to accelerate its stock buyback program. The case talks about how the company has seen its commanding market power decline over the years due to price challenge from smaller companies and has been experiencing slow growth rates due to lack of innovation in recent years. The investors had concerns regarding the future of the company
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GAINESBORO MACHINE TOOLS CORPORATION Overview In mid September 2005‚ Ashley Swenson‚ the chief financial officer of this large CAD/CAM equipment manufacturer must decide whether to pay out dividends to the firm¡¦s shareholders or repurchase stock. If Swenson chooses to pay out dividends‚ she must also decide on the magnitude of the payout. A subsidiary question is whether the firm should embark on a campaign of corporate-image advertising and change its corporate name to reflect its new outlook
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to acquire Torrington from Ingersoll-Rand. This reports provides the needed information on Torrington’s worth‚ price at which Torrington could be acquired and the acquisition strategies to negotiate its deal. The evaluation uses the discounted cash flow analysis using WACC to calculate the value of Torrington worth with synergies. The value turned out to be more than the estimated minimum value of the target. The final recommendation is to proceed with the acquisition as planed which would be beneficial
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Increasing Net Income After Tax Increasing Gross Profit Margin (Preferably ≥ 40%) ROI Increasing high ROE (Preferably ≥ 15%) Increasing ROIC (Preferably ≥ 15%) Increasing CROIC (Preferably ≥ 15%) Liquidity Increasing Net Cash from Operations Increasing Free Cash Flow / Sales (Preferably ≥ 5%) Increasing Quick Ratio (Preferably ≥ 1) Short & declining Cash Conversion Cycle Efficiency Increasing Net Profit Margin (Preferably ≥ 10%) Increasing OCF/TA (Preferably ≥ 8%) 12‚053 928 29.9% 13‚718 945 30.4%
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In order to calculate the break even number of A3XX sold per year since it was at full production‚ we divided the project into two different parts‚ the ramp-up period from 2001 to 2008 and the stable operating period thereafter. To get the free cash flow of year 2001 to 2008‚ we assumed that 1) planes sold are sold at cost‚ therefore no cash inflow emerged from selling planes in this period; 2)Expenses in 2000 are regarded as sunk cost and are neglected from calculation; 3)Research and development
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Ocean Carriers Objectives • Forecast pro-forma cash flows for a project • Estimate project values using Net Present Value (NPV) • Conduct sensitivity analysis for the forecast inputs Setting • January 2001 • Customer offering attractive terms on 3-year lease for a capesize carrier • Would require purchase of new carrier since existing fleet does not fulfill customer needs • Should it be purchased? Industry Dynamics • Revenue Drivers • Outlook in the: –
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DANONE Case - Financial analysis of Danone group PENG Bo (e113110) GE Chuxiao(e113051) JIANG Yihong(e113066) Fiancial Statement Analysis – Danone Case Agenda • Introduction • Capital structure • Profitability • Return • Liquidity • Solvency • Conclusions & Recommendations Fiancial Statement Analysis – Danone Case Introduction of DANONE Group History Initiate in 1966‚ DANONE evolved from the original glass manufacturer to the international leader in fresh diary products.
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