TEST 4 CONCLUSIONS ON FINANCIAL PERFORMANCE AND ANSWERS TO RATIO ANALYSIS 1) Financial ratios of ABC plc from 2009 to 2011 : 2009 2010 2011 Gross margin - % 59.0 54.5 53.6 Net margin - % 21.0 18.5 14.6 ROCE - % 68 45.8 29.9 Return on Shareholder’s Funds - % 84 49.8 28.8 Earnings per share - £ 10.5 10.2 6.83 Dividends per share - £ 3 2.2 1 Current ratio 1.89 2.15 2.32 Quick ratio ( Acid test) 0.84 0.95 1.18 Stock turnover time - days 178 167.9 175.5 Debtor payment time - days 36.5 36.5 45.6
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job‚ he has remained intellectually active. Which term best describes Bob’s activity? a. Moral Hazard b. Screening c. Adverse Selection d. Signaling Answer D 3. A three-year bond has 8.0% coupon rate and face value of $1000. If the yield to maturity on the bond is 10%‚ calculate the price of the bond assuming that the bond makes semi-annual coupon interest payments. (Chapter 2) a. $857.96 b. $949.24 c. $1057.54 d. $1000.00 Response: PV = (40/1.05) + (40/(1.05^2)) +.
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FINANCIAL ANALYSIS AND MANAGEMENT OF INTERNATIONAL GROUPS Marian BODENSTEDT Laurens VAN POUCKE Xander SAVENBERG Olumide KOMOLAFE 42801 42803 42805 42825 EDHEC BUSINESS SCHOOL Financial Analysis and Management of International Groups 1|F i n a n c i a l A n a l y s i s a n d M a n a g e m e n t o f I n t e r n a t i o n a l G r o u p s ABSTRACT Throughout this report written for the coursework of ‘Financial Analysis and Management of International Groups’ taught by Professor George Iatridis
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SOLUTIONS Financial Management Seminar + Homework‚ Week 5 1. Starware Software was founded last year to develop software for gaming applications. Initially‚ the founder invested $800‚000 and received 8 million shares of stock. Starware now needs to raise a second round of capital‚ and it has identified an interested venture capitalist. This venture capitalist will invest $1 million and wants to own 20% of the company after the investment is completed. a. How many shares must the venture capitalist
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Case 19 Georgia Atlantic Company Dividend Policy CASE INFORMATION Purpose The purpose of this case is to have students examine dividend policy--cash dividends‚ stock splits‚ and stock dividends--from the viewpoint of its effect on corporate share prices. Time Required About one and a half hours of student preparation. If the case is to be written up and handed in‚ double the time required. Complexity A--relatively simple. Flexibility This case can be used in
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ABOUT THE HEINZ COMPANY The Heinz Company was incorporated in Pennsylvania on July 27‚ 1900. It manufactures and markets food products throughout the world. The company is mainly organized into the following reportable segments: * North America Consumer Product: The segment includes the manufacturing and selling of ketchup‚ condiments‚ snacks‚ and other products into the grocery channels in the U.S. as well as the Canadian business. * Europe: This segment includes products across
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FPL An Overview FPL Group‚ Inc. is Florida’s largest electric utility company. In 1925‚ through the consolidation of numerous electric and gas companies‚ they formed Florida Power & Light Company (FP&L). FP&L grew steadily over the next 50 years until rising fuel costs‚ operating issues‚ and construction costs began to decrease profitability. In the mid-1980s‚ FPL diversified with four major acquisitions - Colonial Penn Life Insurance Company‚ Telesat Cablevision‚ Inc.‚ CBR Information Group
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Grand Metropolitan PLC Company Background and Issues Grand Metropolitan PLC was a multinational holdings company that faced a hostile takeover threat in the late 1980’s and early 1990’s. The company specialized in wine and spirits. The headquarters for operation was in London‚ England at the time of this case. The major dilemma at hand is avoiding a takeover. The economy was bad at the time‚ and the company’s stock price was thought to be undervalued‚ as their low P/E ratio of 13.3
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The cost of equity of each product was valued using the beta from the industry averages. The beta of the home appliance industry is 0.95‚ while the beta of the agricultural machinery industry is 0.88. Through the use of the CAPM model‚ these betas yield a cost of equity for the home appliances of 11.29% and for the agricultural machinery of 10.7%. The WACC of each individual project is then compared to the project’s IRR. The WACC of the home appliance project was found to be 10.4% and the WACC of
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International Institute Of Professional Studies Indore Term Paper: PERFORMANCE ANALYSIS OF PUBLIC SECTOR BANKS (BANK OF INDIA AND PUNJAB NATIONAL BANK) AND THEIR COMPARATIVE ANALYSIS SUBMITTED TO: SUBMITTED BY: Dr. Kapil Sharma Atul Gupta IM-2K7-23 BANK OF INDIA INDUSTRY – Banking PSU BANK PROFILE Bank of India was founded on 7th September‚ 1906 by a group of eminent businessmen from Mumbai. The Bank was under private ownership
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