Identify which company you would feel to better credit risk

Assignment Help Corporate Finance
Reference no: EM131195863

Ratio

Your Problem-Solution assignment for this module is to conduct a ratio analysis of two different companies.

First click the following linked Financial Fact Sheet to view the financial information for Scarlett Company and Gable Company. The fact sheet contains the accounting details you need to complete this problem-solution assignment.

Click on the line Financial Fact sheet - Scarlett Company / Gable Company

1. Please complete the ratios for the following two companies: 1-current ratio, 2-acid test ratio, 3-accounts which includes notes receivable turnover, 4-inventory turnover, 5-days sales in inventory, 6-days sales uncollected. Please then identify which company you would feel to the better short term credit risk and state your reasons why.

2. Please complete the ratios for the following two companies: 1-profit margin ratio, 2-total asset turnover, 3-return on total assets. Each company then paid a dividend of $3 and as well the stock of each company can be bought at $25 per share, so with this information then compute 4-price earnings ratio and then dividend yields for both. Please then address which company you feel to be the best investment and state your reasons why.

Reference no: EM131195863

Questions Cloud

Write a short paragraph summarizing your findings : If so, is it experiencing any problems enforcing the use of filters? Write a short paragraph summarizing your findings.
Estimate the dollar cash flows : Estimate the dollar cash flows you will need as a result of a call option hedge.
What can an isp do to limit the distribution of hate e-mail : What can an ISP do to limit the distribution of hate e-mail? Why would such actions not be considered a violation of the subscriber's First Amendment rights?
Explain the meaning of withholding tax : (i) Explain the meaning of "withholding tax" and provide an explanation as to why countries levy "withholding" taxes. (ii) Calculate the amount due to be paid by HW on receipt of this dividend in Country X. Show all workings.
Identify which company you would feel to better credit risk : Address which company you feel to be the best investment and state your reasons why. Identify which company you would feel to the better short term credit risk and state your reasons why.
What are the advantages and disadvantages of this system : Go to the FOSI Web site at www.fosi.org. After exploring this site, briefly describe how its ICRA rating process works. What are the advantages and disadvantages of this system?
What does it mean to have a philosophic view worldview : Define Philosophy, describe its main branches, the question each asks, and describe how the answers to those questions formulate worldviews and their correlate ethical systems. (Compare and contrast). What does it mean to have a philosophic view w..
Do you consider these policies to be overly restrictive : Do research to find out if your school or employer has a set of policies that cover the use of corporate blogging. Do you consider these policies to be overly restrictive?
Calculate the cost of inventories in different stores : Apra Limited seeks your advice on how to calculate the cost of inventories in different stores as on Balance sheet date. For one of the fast moving item, am in the inventory, he provides with the following detail

Reviews

Write a Review

Corporate Finance Questions & Answers

  Determine cost of internal equity capital

The common stock for Grapevine Plumbing Corporation currently sells for 40 dollar per share. If a new issue is sold, flotation cost is estimated to be 7 dollar per share. Determine the cost of internal equity capital & external equity capital.

  Need to keep paying to amortize the loan

In addition to the regular payments and how many more months we need to keep paying to amortize the loan.

  Analyze the strengths and weaknesses of the coca cola

analyze the strengths and weaknesses of the coca cola company using ratio analysis and present your findings in a paper

  Decision about mergers and acquisition

How the knowledge of corporate finance helps a multinational company to take decision about mergers and acquisition

  Find projected profit under the guarantee deal

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.

  A company has a bond issue outstanding that pays 150 annual

a company has a bond issue outstanding that pays 150 annual interest plus 1000 at maturity. the bond has a maturity of

  Purpose the closing entries for the general journal

Closing entries for general journal - Purpose the closing entries for the general journal or close the revenue and expense columns.

  Prepare an analysis to determine whether the company

Farrow Co. expects to sell 150,000 units of its product in the next period with the following results.

  Implications of company''s selection of an expected return

Briefly explain the implications of the Company's selection of an expected return on pension plan assets on the quality of the company's earnings

  Discuss the merits of bernsteins arguments

Discuss the merits of Bernstein's arguments and apprehensions regarding reserves and explain how this perspective can be factored into an analysis of past earnings trends, estimates of future earnings, and the valuation of common stock.

  What steps need to be taken to implement your solution

What steps need to be taken to implement your solution? What materials/equipment will be needed to accomplish each step? What people need to be involved in planning the implementation of the solution?

  Simpkins corporation is expanding rapidly and it currently

simpkins corporation is expanding rapidly and it currently needs to retain all of its earnings hence it does not pay

Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd