Preview

Case 6, Sun Coast Savings Bank

Good Essays
Open Document
Open Document
1740 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Case 6, Sun Coast Savings Bank
Case 6
Going Public Sun Coast Savings Bank

Question 3

a) Calculating the Net worth-to-Asset ratios for the peer-group

Figure 3.1: Net worth-to-Asset ratios
| |Net Worth |Assets |NW/A |
|Virginia Federal |950 |14000 |0.068 |
|Southland Financial |2020 |35000 |0.058 |
|Texas Federal |1130 |24000 |0.047 |
|Great Southern Financial |1400 |27000 |0.052 |

b) Calculating the compound growth rates in earnings per share for the peer-group

Figure 3.2: Compound growth rates
| |EPS 1987 |EPS 1992 |Compound Growth |
|Virginia Federal |2.5 |5.25 |15.99% |
|Southland Financial |0.83 |2 |19.23% |
|Texas Federal |1.59 |5.4 |27.70% |
|Great Southern Financial |3.94 |6.25 |9.67% |

c) Calculating the Price-to-Earnings ratios for the peer-group

Figure 3.3: PE ratios
| |Price |EPS 1992 |PE ratio |
|Virginia Federal |32 |5.25 |6.1 |
|Southland Financial |17 |2 |8.5 |
|Texas Federal |25 |5.4 |4.63
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Powerful Essays

    Case East Penn Bank
    • 2488 Words
    • 14 Pages

    Case East Penn Bank

    what this difference means for the Bank’s business strategy. Finally, you will consider how the Bank’s managers can use the new, more refined activity-based cost…

    • 2488 Words
    • 14 Pages
    Powerful Essays
    Read More
  • Good Essays

    Wgu Financial Case 6-2
    • 569 Words
    • 3 Pages

    Wgu Financial Case 6-2

    Principle violated- Divide responsibilities for related transactions and separate recordkeeping from custody of assets. The business will need to separate the duties of Ms. Flat. She is currently recording all cash receipts and posting the payments to the customer accounts. This leaves much room for error and fraud. Ms. Flat also has control or access over all cash receipts as well as being responsible for posting the payment to accounts. 2.…

    • 569 Words
    • 3 Pages
    Good Essays
    Read More
  • Powerful Essays

    Project on Chipotle and Red Robin
    • 1971 Words
    • 8 Pages

    Project on Chipotle and Red Robin

    Sales | 2,269,548 | 1,835,922 | Total Asset | 1,425,308 | 1,121,605 | Total Shareholders Equit | 1,044,226 | 810,873 | Average Total asset | 1986110.5 | | Average total shareholders equity | 1449662.5 | | Interest expenses | -2,945 | -269 | Income before interest and tax | 349,705 | 289,061 | | | | Times interest earned | 117.74 | 1073.57 | ROI | 16.87% | 15.95% |…

    • 1971 Words
    • 8 Pages
    Powerful Essays
    Read More
  • Better Essays

    Defining Financial Ratios: Kudler Fine Foods
    • 987 Words
    • 4 Pages

    Defining Financial Ratios: Kudler Fine Foods

    The concept of forecasting financials is as much about calculating the data is its about understanding the data. A simple concept of calculating the larger perspective for a simple index can be the keys to understanding the direction of the company. Calculating that direction will help those who associate with the company as owners, lenders, and board members to know if the company is credit worthy, turnaround on accounts receivables, and the long term financial health of the company.…

    • 987 Words
    • 4 Pages
    Better Essays
    Read More
  • Good Essays

    Case 15.4 Fannie Maeua Johnson
    • 514 Words
    • 3 Pages

    Case 15.4 Fannie Maeua Johnson

    1. In 1932, the federal government’s intervention in the market for home ownership was desirable. Not only was it desirable, but it was needed. It has been the federal government’s desire to have every American become a part of the American dream and be a homeowner. In 1932 President Hoover signed the Federal Home Loan Bank Act to establish a series of discount banks for home mortgages. This would assist in increasing the likelihood of Americans owning a home and not feeling that they were restricted because of financial pressures. Fannie Mae, Ginnie Mae, Freddie Mac were created to help bail out banks that had a growing number of defaults in mortgages. These three enterprises made it possible for banks to offer mortgages to riskier clients who normally would not…

    • 514 Words
    • 3 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    Union Bank Breaking Case Summary
    • 766 Words
    • 4 Pages

    Union Bank Breaking Case Summary

    3. Exactly what do you want your audience to think, feel or believe after receiving your message?…

    • 766 Words
    • 4 Pages
    Satisfactory Essays
    Read More
  • Satisfactory Essays

    Round1
    • 6248 Words
    • 25 Pages

    Round1

    ROS Asset Turnover ROA Leverage (Assets/Equity) ROE Emergency Loan Sales EBIT Profits Cumulative Profit SG&A / Sales Contrib. Margin % Andrews 12.9% 1.03 13.3% 1.4 19.1% $306,861 $199,687,417 $46,007,047 $25,674,379 $167,921,337 14.6% 46.1% Baldwin 2.2% 1.33 2.9% 1.3 3.7% $0 $84,459,254 $4,049,665 $1,820,056 ($9,663,431) 18.2% 23.8% Chester -7.7% 0.64 -4.9% 2.5 -12.2% $19,862,027 $87,014,031 ($1,781,903) ($6,734,381) $37,696,776 24.3% 34.2% Digby 5.9% 0.55 3.3% 1.4 4.4% $19,116,490 $157,535,095 $22,114,930 $9,325,756 $50,585,060 13.6% 44.5% Erie 16.0% 1.22 19.5% 1.6 30.3% $0 $244,661,715 $70,174,142 $39,239,433 $100,679,872 12.9% 49.3% Ferris -5.0% 1.08 -5.4% 2.2 -12.0% $0 $125,722,474 ($4,760,338) ($6,271,878) ($2,658,141) 17.6% 22.4%…

    • 6248 Words
    • 25 Pages
    Satisfactory Essays
    Read More
  • Satisfactory Essays

    Ramirez Oscar HRM 595 Case 1 Capital Mortgage Insurance Corporation
    • 727 Words
    • 3 Pages

    Ramirez Oscar HRM 595 Case 1 Capital Mortgage Insurance Corporation

    2. Talk to both parties to identify their specific issues that need solving, identify what is going to be needed to find solutions in the short and long term. Take note of each parties information related to issue at hand which can be used to corroborate information during the negotiating process.…

    • 727 Words
    • 3 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    Case 12-03
    • 545 Words
    • 3 Pages

    Case 12-03

    Energy should recognize a provision as of December 31, 2011, in reporting to its U.K. parent under IFRSs and in reporting to its U.S.-based lender in accordance with U.S. GAAP. IFRS and GAAP follow three steps in order to determine if a provision should be recognized. They are:…

    • 545 Words
    • 3 Pages
    Good Essays
    Read More
  • Good Essays

    Acc 411 Pinnacle Case 1
    • 1005 Words
    • 5 Pages

    Acc 411 Pinnacle Case 1

    c). Through comparing the current year’s account balance and ratios with those of the preceding year, we summerize Pinnacle business in serveral areas. The gross profit margin which measures the profitability of Pinnacle business indicates that Pinnacle is performing very stable and fairly well. In identifying areas of business risk, we focus on accounts receivable turnover, inventory turnover, and debts to equity. Account receivable turnover has declined significantly, it is a reasonable tool to assess that more sales were credit sales. Increased credit sales are likely to be assessed…

    • 1005 Words
    • 5 Pages
    Good Essays
    Read More
  • Better Essays

    Charles Schwab Case
    • 1794 Words
    • 8 Pages

    Charles Schwab Case

    Charles Schwab, a Stanford MBA, founded Charles Schwab & Company in 1971 in California. The company quickly established itself as an innovator. A defining moment came with the 1975 "May Day," when Schwab took advantage of the new opportunities deregulation offered. Schwab would not provide advice on which securities to buy and when to sell as the full-service brokerage firms did. Instead, it gave self-directed investors low-cost access to securities transactions. From the late 80s to the early 90s, before the commercial use of the Internet, Schwab used technology to increase efficiency and quality and expand its services. Schwab's innovations harnessed technology to the solution of business problem. As Schwab's President and co-CEO David Pottruck put it, "we are a technology company in the brokerage business."…

    • 1794 Words
    • 8 Pages
    Better Essays
    Read More
  • Powerful Essays

    Individual Comparative Analysis Memo
    • 1661 Words
    • 7 Pages

    Individual Comparative Analysis Memo

    First off, I am going to rank the companies’ two financial measures, earning power and solvency. The scale ranges from 1 (very weak) to 10 (very strong). After analyzing the numbers of both companies, it is very apparent that Medtronic has generally done better than SJM in the fiscal year 2008, and this applies to both financial measures. For the first measure, earning power, Medtronic has done better than SJM in all ratios, excluding Return on Assets (ROA). Based on this, on a scale from 1 to 10, I would rank Medtronic as an eight and SJM a six. Moving onto the next financial measure, under all solvency ratios, Medtronic had done better than SJM. Once again, Medtronic’s ranking is 8, but SJM seems a little worse, therefore I rank SJM a five.…

    • 1661 Words
    • 7 Pages
    Powerful Essays
    Read More
  • Satisfactory Essays

    Homework
    • 348 Words
    • 3 Pages

    Homework

    3. The following selected financial data pertain to four companies: a hotel, a travel agency, a meat packing company and a pharmaceutical company.…

    • 348 Words
    • 3 Pages
    Satisfactory Essays
    Read More
  • Powerful Essays

    Lion Financial Services Case
    • 2354 Words
    • 10 Pages

    Lion Financial Services Case

    1) How do the principles outlined in the “principles of redesign” relate to the changes suggested by Andy in the Call Center Design for Lion Financial Services?…

    • 2354 Words
    • 10 Pages
    Powerful Essays
    Read More
  • Good Essays

    Countrywide Financial Case
    • 7884 Words
    • 32 Pages

    Countrywide Financial Case

    the mortgages Countrywide made during the housing boom were overly risky and likely to go into default. Problems…

    • 7884 Words
    • 32 Pages
    Good Essays
    Read More

Related Topics