Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Foot Locker, Inc., reported an $18 million loss on sales of $1,283 million for the quarter ended August 4, 2007. The quarterly financial filling (10-Q) also contained this warning for investors and creditors.
Source: Foot Locker Inc. Form 10-Q for the quarter ended August 4, 2007."Under the Company's revolving credit and term loan agreement, the Company is required to satisfy certain financial and operating covenants, including a minimum fixed charge coverage ration. In addition, this agreement restricts the amount the Company may expend in any year for dividends to 50 percent of its prior year's net income. Based upon the Company's second quarter financial results and business uncertainties for the second half of the year, the Company may not continue to be in compliance with the fixed charge coverage ratio. In addition, the restricted payment provision may prohibit the company from the payment of the dividend at the current rate in 2008."
1. What is a minimum fixed charge coverage ration, and what purpose does it serve int he company's loan agreements?2. Why would Foot Locker agree to restrict dividends to just 50% of its prior year's net income?3. In general terms, explain how a company such as Foot Locker might use accounting tricks to avoid violating debt covenants tied to financial statement numbers.4. What is likely to happen if Foot Locker does not satisfy one or more of the loan covenants at year-end?
The tsetsekos Corporation was considering to finance an expansion. The principal executives of the c orporation all agreed that an industrial company such as theirs should finance growth by means of common stock rather than by debt.
What is the total interest expense over the life of the bonds cash interest payments? Premium amortization?
value the common stock of a public company and issue a recommendation to investors whether to buy, sell or hold the stock.
Evaluation of Sum of values of pure business flows and financing effect - Financing flows should be discounted at the rate of return required by the providers of debt.
As a financial manager be interested in doing business in this country-Growth Rate of GDP, both current and historical
How would not having to pay taxes impact our future cash flows? Would the depreciation tax shield offset the actual tax cost?
Does the essay by Wayne F. Cascio, Decency Means More than Always Low Prices: A Comparison of Costco to Wal-Mart's Sam's Club, tend to support the position of Milton Friedman or R. Edward Freeman?
Financial Statement ratio analysis-Project Due at the end of the Post week - Prepare common sized statements for the 3 years and Prepare a trend analysis for both the balance sheet (classification totals only) and the income statement.
Finding the value of inventory destroyed in natural disaster - estimate the amount of inventory destroyed in the natural disaster.
Multiple choice questions on JIT and actions are likely to reduce the length of a company's cash conversion cycle?
You have decided to become a rock concert promoter & have made arrangements with Jerry Jones to rent the new Texas Stadium for one night for a cost of dollar 1,000,000 plus a dollar 7 each ticket participation fees.
The theory to the companies selected by analysing the data and the stating as to how the companies are managing their Risk, Short Term Financial Policy, Current Capital Structure and their Current Dividend Policy.
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd