Discuss the differences in risks associated with a

Assignment Help Finance Basics
Reference no: EM13478872

You are a senior financial consultant for 123 Corporation. Your CEO has asked that you train incoming consultants on financial management and risks.

You develop a lesson plan comparing financial risks of a popular retail clothing company and a utility company to help the trainees better understand risk management.

  • Discuss the differences in risks associated with a retail clothing company versus a utility company.
  • Which company has the potential for higher risk?
  • Identify at least 3 sources of risk.
  • Compare stability and variability in earnings, as well as the optimal debt ratio between the two-which company has the highest, and which has the lowest?

Explain your rationale for each of your answers.

Reference no: EM13478872

Questions Cloud

Distinguish between the 3 factors of financial risk as : you are about to take over moneyplays bank a small but lucrative financial institution. you have hired new staff and
At the end of the economic exercise corresponding to the : at the end of the economic exercise corresponding to the year 2012 a company presents the following financial statuses.
The first day assignment is for students to 1 research and : here is the class note the first day assignment is for students to 1 research and find three camping locations in
Source documents question two what do these documents tell : read all of the underdogs by mariano azuela see link below for readinghttppinkmonkey.comdllibrary1digi508.pdfin 2-3
Discuss the differences in risks associated with a : you are a senior financial consultant for 123 corporation. your ceo has asked that you train incoming consultants on
Debate prompt census figures indicate that hispanics many : debate prompt census figures indicate that hispanics many of whom come from mexico or are of mexican ancestry are the
What would be the offered price for this : an investor wants to acquire a small business which sells electronics with an average turnover of 725000 euros. this
Wy might firm use local capital structure at particular : in 750 to 1000 words total respond to the following why might a firm use a local capital structure at a particular
On march 19 2012 apple aapl announced plans to begin paying : on march 19 2012 apple aapl announced plans to begin paying dividends for the first time since 1995. according to the

Reviews

Write a Review

Finance Basics Questions & Answers

  Detailed explanation to budgeting

How do you execute the time value of money concept to make decisions in your personal life?

  What rate of return is built into the annuity

Suppose you just won the state lottery, and you have a choice between receiving $2,550,000 today or a 20-year annuity of $250,000, with the first payment coming one year from today. What rate of return is built into the annuity? Disregard taxes.

  What would be the amount of your profits

Describe what an arbitrage would do to take advantage of IRP not holding. If you engaged in a $10 million covered interest arbitrage - what would be the amount of your profits?

  Facing workforce of future

What do you think are major reasons that more organizations are recruiting diverse workforce? What are some ways that recruiting would be done differently to attract more African Americans? Latinos? Women?

  Explain how financial ratios are used in financial analysis

First, explain what is meant by the term "Financial Analysis". Then, explain how financial ratios are used in Financial Analysis.

  How much is the bond worth today

Suppose a U.S. treasury bond will pay $2,500 five years from now. If the going interest rate on 5-year treasury bonds is 4.25%, how much is the bond worth today?

  What is your intrinsic value of one share of stock

Assume a company pays a fixed dividend on its 4%, $100 par value preferred stock. If your required rate of return is 8%, what is your intrinsic value of one share of stock?

  How much can they withdraw on his 18th birthday

Students parents established a college savings plan for the student when he was born. They deposited $50 into the account on the last day of each month. The account has earned 10% compounded monthly, tax-free.

  What is the roe under each alternative

Mos Company is attempting to establish a current assets policy. Fixed assets are $1M and the firm intends to maintain a 50% debt to assets ratio. Mos has no current liabilities. The interest rate is 8% on all debt.

  Which scenario has a higher future value

Which scenario has a higher future value when you take the money from the account? Explain.

  What was its charge for depreciation and amortization

Talbot enterprises recently reported an EBITDA of $8 Million and net income of $2.4 million. It had $2.0 million of interest expense, and its corporate tax rate was 40%. What was its charge for depreciation and amortization?

  What may limit the use of the network model

Furthermore What may limit the use of the network model in the firm? Do they operate effectively in all situations?

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