Assignment 1
Write about 1-2 pages of the analysis of the financial conditions, its stability, and trends. What important information does this analysis provide?
Has the company’s ROE changed over the last three years? What was the main factor that influenced this change?
Compare the ratios of you company to the peer competitor. If the management of the company would like to improve their return on equity, what should the management of the company do?
Week 1
1. Find ROE, Net profit margin (listed as net margin), asset turnover, financial leverage for the last three years for your company. You also may use debt/equity ratio in your analysis.
2. Find ROE, Net profit margin (listed as net margin), asset turnover, financial leverage for the last year for its major peer competitor. You also may use debt/equity ratio of peer competitor in your analysis.
3. Has the company’s ROE changed over the last three years? What was the main factor that influenced this change?
4. Compare the ratios of you company to the peer competitor. If the management of the company would like to improve their return on equity, what should the management of the company do?
Mini-Case Analysis 1: Amazing Brentwood Inc
1. Elven MO information, determine the value of the terminal loss or recapture at the end of the year.
2. What are the earnings before interest and taxes in the year 2018?
3. What is the after-. net profit for the year 2018?
The company plans to efficiently maintain the assets in the long run.
The average total assets of the firm are 345,000.
The firo also plans to cover the solvency ratios in a reasonable manner. seek additional refinancing from the caotal providers.
The company has 50,OLG shares outstanding.
The company plans to raise rnore capital by issuing shares.
The company’s ROE has been determined to be 109 which la likely to go up in the next year.
The company la con.rn. about the profitability ratios of the company and it is seeking your advice to improve them.
The sales of the recent marter of 2019 have gone down to 55,800 whereas the net earnings are 3,200.
The company planning to expand in the future. It is planning to open one more branch in the Greater Vancouver region.
The shareholders, Board of Directors (800) and the managers may have a disagreement on its decision though.
4. What is the Asset turnover for the company?
5. Calculate the TIE ratio and also r.pond whether it is satisfactory or not?
6. How will issuing more shares affect the capital structure of the company?
7. What does the firo need to do to raise its ROE?
8. Calculate the profit margin ratio of the company and comment on the profitability performance of the numPacY.
S What type of financial decision is the company making with the expansion?
10. The disagreement among the shareholders, BOO and the managers is popularly points. what in finance?
