Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
A friend is looking for advice on one of his investments, KER. KER manufactures stationery supplies, the entity appointed a new Chairman in 2008 and since then has been executed an expansion strategy aimed at pursuing new markets with its active product base.
In the 2009 annual report The Chairman's report included and announces the success of the expansion plan, citing increased returns and profits as evidence of the entity's success, and noting that the entity has invested in non-current assets to ensure returns continues to increase. Your friend is intending to hold his investment in KER based on the positive chairman's report but has asked you to consider the monetary information to assess whether the figures support the chairman's claims.
The statement of financial position as at 31 December 2009 and its comparative is shown below:
2009
2008
$m
ASSETS
Non-current assets
Property, plant and equipment
480
404
Investment in associate
177
-
Available for sale investments
150
140
807
544
Current assets
Inventories
145
65
Receivables
247
134
Cash and cash equivalents
22
392
221
Total assets
1,199
765
EQUITY AND LIABILITIES
Equity
Share capital
100
Revaluation reserve
74
32
Other reserves
Retained earnings
457
333
Total equity
663
487
Non-current liabilities
Loans
400
210
Current liabilities
Payables
99
68
Overdraft
37
136
Total liabilities
536
278
Total equity and liabilities
They are issued in the local market by a domestic borrower and are usually denominated in the local currency. For example, US companies issuing bonds to US reside
Explain about the liquidity premium theory of the term structure of interest rates. Liquidity premium theory: Liquidity premium theory asserts which, into a world of unce
Disclosure requirements · Common information about how operating segments were identified and types of products and services from which every operating segment derives its rev
Q. Example to show the companys current gearing? The company's current gearing 2000/ 8500 × 100 = 23.53% The current gearing position is on the low side particularly wh
Peak Inc. needs to order Canadian raw materials to use in its production process. The Canadian exporter typically invoices Peak in Canadian dollars. Assume that the current exchang
A treasury strip can be sold in two parts based on its components. When the investor is empowered with a right to receive the coupon payments on sale of its treas
The following is the existing capital structure of Company XYZ Ltd. Ordinary shares at Shs.10 par 1,000,000 Retained 800,000 12% preference shares Shs.10 par 400,000 16% loan Shs.1
Q. Rate of the growth of the business? The working capital requirement of the a concern increase with the growth and expansion of the business activity although it is difficu
Post-merger EPS and post-mergershare price An estimated post-merger EPS can be calculated by: (Combined earnings) / total shares after merger An estimated post-merger s
Q. Market condition Affecting cost of capital? Market condition: if an investor is purchasing a security where the risk of the investment in significant the opportunity for add
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd