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Last year Nymphe Technologies had $450 million of sales and $270 million of fixed assets, so its FA/Sales ratio was 60%. However, its fixed assets were used at only 75% of capacity. While forecasting the results for the next year, the company wants to set its target Fixed Assets/Sales ratio at the level it would have realized had it been operating at full capacity. What target FA/Sales ratio should the company set?
How are financial trades made on an organized exchange? Ans: Each exchange-listed security is traded at a fixed location on the trading floor known as the post. The trading is
Factors of Capital Structure 1. Availability of securities - This influences the company's employ of debt finance that means such if a company has enough securities, so then
(a) RBC has 100 loans outstanding, each for $1 million, which it expects to be repaid today. Each loan has a 5% probability of default, in which case the bank is not repaid anythi
Question 1: i) Discuss the main risks facing a retail bank in its traditional business of deposit taking and lending? ii) How can a bank manage the risks related to credit
Berick Ltd is a relatively small engineering company that manages to compete effectively with larger companies by adapting to changing market requirements and specialising in innov
What are the main functions of the financial systems? The main functions of financial systems in short are as follows: a. Give the mechanisms by that funds can be transferre
flotation cost of 15% for bond, bonds 8%,$1,000 par value, 16 year maturity
Foreign Trade Balance If the Government buys or imports much more than it sells or exports there will be a trade deficit such will require financing.The most important source
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Reasons for why Ordinary Share Capital is Attractive Reasons for why ordinary share capital is attractive despite to be risky Shares are used as securities for loans as
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