CHAPTER 2
PROBLEMS/CORPORATE FINANCE P2/ 2-3
P2/
2-3 Data for Unilate Textiles’ 2015 financial statements
are given in Tables 2.1 and 2.2 in the chapter. Compute the 2015
values of the following ratios:
Ratio Unilate
Industry 2015
Values
Current
ratio…………………………………………………………………………………………………………3.9x
Days sales
outstanding……………………………………………………………………………………………33.5 days
Inventory
turnover…………………………………………………………………………………………………7.2x
Fixed assets
turnover…………………………………………………………………………………………….4.1x
Debt
ratio…………………………………………………………………………………………………………43.0%
Net profit
margin……………………………………………………………………………………………………………….4.6%
Return on
assets………………………………………………………………………………………………………………..9.9%
b. Briefly comment on
Unilate’s 2015 financial position. Can you see any obvious
strengths or weaknesses?
c. Compare Unilate’s
2015 ratios with its...
1) What is finance? Define business finance. 2) Explain the types of finance. 3) Discuss the objectives of financial management 4) Critically evaluate various approaches to the financial management.
Which of these duties are responsibilities of the corporate
treasurer?
a. financial statements and taxes
b. cash management and tax reporting
c. cash management and banking relationships
d. raising capital and financial statements
Corporate finance
(Financial management) deals with main three types of managerial
decision making
problems in the
context of business except:
a. Investment decision
making problems
b. Financing decision
making problems
c. Staffing decision
making problems
d. Assets (working
capital) management decision making problems
Discuss the benefits of any or all of the major financial
statements used in corporate finance. These statements include the
balance sheet, income statement and statement of cash flows.
Explain how you would use these statements to plan for the budget
in the next fiscal year.
Please explain this in own words? What these terms mean in
business world? (finance)
1) the timing options
2) flexible production
3) the abandonment option
Corporate Financial Management:
7. In corporate finance, explain what is meant by the agency
relationship. Discuss how agency costs come about and at least
three ways in which these costs can be reduced.
(50 %)
Explain what is meant by corporate governance. Why is corporate
governance important to the shareholders of a firm? Critically
assess the following statement: “the same corporate governance
rules should be applied to all companies”.
(50 %)