Long term credit decision, Basic Statistics

Long Term Credit Decision

In no more than one typed page, provide a statement of your decision to lend or not lend to this company based on your interpretation of the company's long-term prospects (i.e., long-term viability, solvency, and growth). Research this as you would if you were considering lending $1,000,000 of your own money to this company to be repaid in 10 years. Address the following and be sure to provide a conclusion on your decision on whether to lend to this company:

a. Is the company experiencing favorable or unfavorable leverage?

 b. What are the company's needs for future financing?

c. What are the company's likely sources for payment of interest and principal?

d. How much cushion does the company have in its earnings and cash flows to pay interest and principal?

e. What is the likelihood the company will be unable to meet its financial obligations?

f. How volatile are the company's earnings and cash flows?

g. Does the company have the financial strength to pay its commitments in a period of poor profitability?

Posted Date: 3/4/2013 7:51:35 AM | Location : United States

Related Discussions:- Long term credit decision, Assignment Help, Ask Question on Long term credit decision, Get Answer, Expert's Help, Long term credit decision Discussions

Write discussion on Long term credit decision
Your posts are moderated
Related Questions
A certain manufactured item is visually inspected by two different inspectors. When a defective item comes through the line, the probability that it gets by the first inspector is

example of descriptive statistics in word form

A national study found that treating people appropriately for high blood pressure reduced their overall mortality by 20%. Treating people adequately for hypertension has been diffi

A sine wave is sampled at interval Tand quantixed using N=2bits precision over the range ±1. The sine wave has peroid τ, and T is chosed such that T = 1/8τ Plot one cycle of the

Define the Management or Managerial Accounting System. Ans.  As the name suggest management or managerial accounting system refers to the Management of the firm or company,

Question: Data entry clerks at ARCO key in thousands of insurance records each day.  They have just completed a new training program and want to establish a control chart based

Ask question #Minimum 100 words accepteWhen all factors are taken into account, an insurance company estimates that the probability of my father making a claim for damages to his p

the guinegog is a trader in portable cd-man. His budgeted output is 5000 units per quarter. The following data was available for the year 1998: Direct labour @ $6 Direct material @

What is regression analysis ? Discuss the relation between ''correlation coefficient'' and the ''regression coefficients''?

Research Assignment for Quantitative Methods 2 Purpose: To design, undertake and analyse research on a negotiated project, possible themes could be any one of the following: