COMPANY G MEMORANDUM TO: CEO FROM: Student Name CC: CFO DATE: November 29‚ 2011 SUB: RATIO ANALYSIS Current Ratio The current ratio of the company is at a lower side i.e. 1.79‚ which may lead to some liquidity issues for the company in the future. The ratio was 1.86 in year 11 and has come down to 1.74 in years 12. The industry average was 2.1 and higher quartile was 3.1. Thus‚ this indicates a weakness for the company as liquidity may be compromised. Acid Test Ratio The acid test
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Subject: Corporate Finance (3 credits) Reference book: 1. Essentials of managerial Finance: Harcourt College 2000 2. Fundamentals of financial management: Mc Graw Hill 2007 Chapter 01: An overview of Finance What is finance? Finance is concerned with decisions about money (cash flows) Finance decisions deal with how money is raised and used Everything else being equal: * More vale is preferred to less * The sooner cash is received the more value it has * Less risky
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FINANCE: TUTORIAL 2 (Suggested Solutions) 1. Liquidity measures how quickly and easily an asset can be converted to cash without significant loss in value. It’s desirable for firms to have high liquidity so that they can more safely meet short-term creditor demands. However‚ liquidity also has an opportunity cost. Firms generally reap higher returns by investing in illiquid‚ productive assets. It’s up to the firm’s financial management staff to find a reasonable compromise between these opposing
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all. 3. At their stage in the life cycle‚ term insurance is the best option for the Dumonts. It provides the greatest amount of insurance per premium dollar. Universal and variable life policies both include cash value components‚ through earnings from interest or mutual funds‚ respectively‚ which increase the cost of insurance coverage. These policies also tend to have high insurance‚ investment and administrative expenses‚ which add to their cost. The option to skip the premium payment on universal
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that will have the same payoff as the option described in a). What should be the price of this call option then? Question 4 Your friend‚ Dawg‚ quit school 2 years ago and moved to Florida to become an orange farmer. Admiring your wisdom acquired from your Fin475 class‚ he contacted you this year to help him with some risk management decisions. a. He told you he is going to harvest 200‚000 pounds of oranges this October if the weather is normal. You did your research and find no futures contracts
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Schiro‚ I’m from Houston‚ Texas. I am interested in traveling the world‚ different cultures (especially Spanish)‚ football‚ basketball‚ lacrosse‚ soccer‚ basically all sports.. 2. What is the one thing that most excites you about being at the UT‚ Austin? Why? Just being in the city of Austin is the most exciting thing to me. I love the people‚ the atmosphere‚ the energetic attitude‚ and all the awesome ways to have fun here. Plus‚ the city of Austin is a large change of pace from West Point‚
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This report is to discuss and figure out the reasons behind the failure of the infamous project Lane Cove Tunnel. The project costs around $1.1 billion for a 3.5km long twin tunnel which run underneath the Epping Road‚ and will connect the M2 motorway from North Ryde to the Gore Hill Freeway at Atarmon (Connector‚ 2010). The tunnel started to build in 2004 and it started operating in 2007. The tunnel was set to allow a shorter transportation time between City and Northwestern suburbs. It also represents
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PRINCIPLES OF BANKING AND FINANCE MT.KENYA UNIVERSITY INSTRUCTIONS Answer at least TWO questions from section A and TWO others from section B SECTION A 1. a. Compare and contrast the main features of the financial systems of US and Germany. 15 marks b. Discuss the reasons for the internet bubbles of the late 1990s
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these strategies to become common practice. Many teachers choose isolated behavioral strategies that are not applied immediately after the problem behavior has occurred. As teachers‚ we are often expending more of our energy than is necessary by not taking time to implement a more comprehensive approach toward behavior management. In many cases one will need only a few of these strategies in place to create a positive behavioral support plan. When formulating a plan‚ it is important to remember
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Defining behavioral modernity depends on the consideration that behaviorally modern traits are based off of records derived from Western Europe during the Middle Paleolithic and Upper Paleolithic eras (Nowell 2010: 440). Therefore‚ they are not universal and there has been considerable protest against applying them universally because these traits do not hold true for Africa at this same time period. It is because of this distinction that this paper will focus on behavioral modernity in the genus
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