Collection period to reflect the industry averages

Assignment Help Financial Management

Reference no: EM131965881

Cora’s Candy Emporium, Inc., has been in business for 5 years. Below are selected financial ratios for 2014-2015. You are required to answer the following 4 questions found directly after the financial ratio data set. Will Cora be happy with the direction that the current ratio has gone since 2014? Why or why not? Effective January 1, 2015, Cora initiated a new collection period of 90 days same as cash. She wants her collection period to reflect the industry averages? Will Cora be pleased with the 2015 results of her new policy? Explain. Last week at the stockholders’ meeting, they discussed the return on common equity. Do you think the stockholders were pleased with the results? Why or why not? Would you recommend Cora’s Candy Emporium board of director’s authorized a dividend on the common stock this year? Why or why not?

Reference no: EM131965881

Questions Cloud

What is the n-value and present value : You deposit $1,275 today in a savings account. You earn 3.75% compounded monthly. What is the n-value? What is the present value?

What is your after-tax return for the year : Now suppose that dividends are taxed at percent and long-term capital gains (over 11 months) are taxed at 30 percent. what is your after-tax return for the year

Calculate yield to maturity : Stone Sour Corp. issued 20-year bonds two years ago at a coupon rate of 7.1 percent. Calculate Yield to Maturity in Excel using above Information

Dividend discount model to value stock : Assume that you are using the dividend discount model (the Gordon Model) to value stock.

Collection period to reflect the industry averages : Cora initiated a new collection period of 90 days same as cash. She wants her collection period to reflect the industry averages?

What are the major currency exchange regimes : What are the major currency exchange regimes in the world?

Cash to purchase home at? retirement : Donovan to have the cash to purchase a home at? retirement?

Company wants to pay off the remaining amount of loan : Now this company wants to pay off the remaining amount of loan. How much should it pay given that the company has just made the sixth payment?

What is their federal tax liability and marginal tax rate : What is their federal tax liability? What is their marginal tax rate? What is their average tax rate?

User Account

All Pages