1. The following three one year “discount” loans are available to you:
Loan A: $120,000 at a 7 percent discount rate
Loan B: $110,000 at a 6 percent discount rate
Loan C: $130,000 at a 6.5 percent discount rate
a. Determine the dollar amount of interest you would pay on each loan and indicate the amount of net proceeds each loan would provide. Which loan would provide you with the most upfront money when the loan takes place?
Loan A:
120,000 – 8400 = 111,600.
Loan B:
110,000  6600 =103,400
Loan C:
130,000 – 8450 = 121,550
The loan that would give more upfront is Loan C.
b. Calculate the percent interest rate or effective cots of each loan. Which one ha the lowest cost?
Loan A:
8400 X 100 = 7.53%
Loan B:
6600 X 100 = 6.38%
Loan C:
8450 X100 =6.95%
The loan that would be at lowest cost is Loan B.
2. ATM Banc has the following liabilities and equity categories: Deposits$9 Million
Other Liabilities $4 Million
Owner’s Capital ?
Total Liabilities and capital ?
a. What would be the bank’s total liabilities and capital if owners’ capital were half the size of other liabilities? Deposits – 9 million
Other Liabilities – 4 million
Owners’ Capital  2 million
TOTAL LIABILITIES AND CAPITAL = 15 Million
b. If total liabilities and capital were $15.5 million, what would be the amount of the owners’ capital? Deposits – 9 million
Other Liabilities – 4 million
OWNERS CAPITAL – 2.5 million
Total Liabilities and Capital – 15. 5 Million
c. If the total liabilities and capital were $14 million, and $1 million of deposits were withdrawn from the bank, what would be the amount of the owners’ capital? Deposits – 9 million – 1 million = 8 million
Other liabilities = 4 million
OWNERS CAPITAL – 2 Million
Total Liabilities and Capital – 14 million
...Report
Introduction:
Any successful business the owners is always calculate the performance of the company, comparing it with the company's historical figures, with its industry competitors, and even with successful businesses from other industries. To complete a thorough examination of your company's effectiveness, however, I will calculate the statement of financial performance and statement of financial position, so I need to look at more than just easily attainable numbers like sales, profits, and total assets. I must be able to read between the lines of the financial statements and make the seemingly inconsequential numbers accessible and comprehensible.
This very big data overload could seem astounding. Luckily, many welltested ratios out there make the task a bit less daunting. Comparative ratio analysis helps you identify and quantify of the desert hotel company's strengths and weaknesses, evaluate its financial position, and understand the risks you may be taking.
As with any other form of analysis, comparative ratio techniques are not definitive. Numerous off the balance sheet and income statement factors can play a role in the success or failure of a company. This discussion contains descriptions and examples of the eight major types of ratios used in financial analysis: Profitability, Liquidity, shortterm liquidity and LongTerm Analysis
Ratios are highly...
...ANALYSIS: 3
RATIO ANALYSIS: 3
FAUJI CEMENT BALANCE SHEET AND PROFIT AND LOSS ACCOUNT 4
RATIO ANALYSIS: 9
INTRODUCTION
MANAGERIAL FINANCE:
• Managerial finance is concerned with the duties of the financial manager in the business firm.
• The financial manager actively manages the financial affairs of any type of business, whether private or public, large or small, profitseeking or notforprofit.
• They are also more involved in developing corporate strategy and improving the firm’s competitive position.
FINANCIAL STATEMENTS ANALYSIS:
• Ratio analysis involves methods of calculating and interpreting financial ratios to assess a firm’s financial condition and performance.
• It is of interest to shareholders, creditors, and the firm’s own management.
RATIO ANALYSIS:
In the following assignment two companies from the Cement Industries which are registered in the Lahore Stock Exchange (LSE) is being taken for the ratio analysis. At first the financial ratios of the each company is calculated and is compared with the previous year of the respected company financial ratios data (20082009) while in second step the ratios for the year 2009 of the both company is compared and is then analyzed that which company is in better position than the other.
FAUJI...
...LIQUIDITY
Liquidity ratios are used to determine a company’s ability to meet its shortterm debt obligations. Investors often take a close look at liquidity ratios when performing fundamental analysis on a firm. Since a company that is consistently having trouble meeting its shortterm debt is at a higher risk of bankruptcy, liquidity ratios are a good measure of whether a company will be able to comfortably continue as a going concern.
Working Capital
Working capital is the amount by which the value of a company's current assets exceeds its current liabilities. Also called net working capital. Sometimes the term "working capital" is used as synonym for "current assets" but more frequently as "net working capital", i.e. the amount of current assets that is in excess of current liabilities. Working capital is frequently used to measure a firm's ability to meet current obligations. It measures how much in liquid assets a company has available to build its business.
Working capital is a common measure of a company's liquidity, efficiency, and overall health.
Decisions relating to working capital and short term financing are referred to as working capital management. These involve managing the relationship between an entity's shortterm assets (inventories, accounts receivable, cash) and its shortterm liabilities.
Working capital (net working capital) = Current Assets  Current Liabilities
2008
2009...
...
Ratio Analysis University of Phoenix
HCS/571 Finance Resource Management Sept 24, 2013Rosetta Stringfellow, MBA, BSRatio Analysis Ratio analysis is a widely used managerial tool that compares one number with another to gain insights that would not arise from looking at either of the numbers separately. Ratio analysis is used to examine and interpret the relationship between two numbers on a financial statement. This is done so that the managers of a facility can determine whether or not the organization needs to change any of their financial variables in order to remain competitive in their market. The ratio analysis converts numbers into meaningful comparisons which managers can use to compare their facilities with others within the same market. The management team can also use the ratio analysis to see how the facility is performing from year to year. In sum, ratio analysis shows the strengths and weaknesses of a health care facility (Finkler, Kovner, & Jones, 2007).
The financial data for this paper are from the financial statements of Norwalk Hospital located in Fairfield County, Connecticut. Common size ratios allow comparisons between comparable health care organizations. It is important to see how the facility compares to others in the region of the market place (Finkler et al., 2007)....
...Faom Statutory Combined Ratio  12120  3587  (1921)  (21019)  (8409)  8100  7563 
Unrealized Capital Gains  (5848)  21334  (12387)  (54738)  24042  15015  (3674) 
       
 2006  2007  2008  2009  2010  2011  2012 
1.Industry Statutory Combined Ratio  1.011531  0.922324  0.925584  1.049708  1.004400  1.018545  1.075980 
2.Industry Trade Basis Combined Ratio  1.006834  0.917629  0.922686  1.047775  1.004685  1.017492  1.075921 
3.OR on NII  0.886679  0.794914  0.800237  0.926923  0.887271  0.902515  0.960133 
4.OR on NII+RCG  0.858605  0.786859  0.804478  0.974169  0.906798  0.883604  0.943081 
5.OR on NII+RCG+UCG  0.872151  0.738951  0.831825  1.097209  0.850969  0.848547  0.951365 
QUIZ 4 – TEAM 1
Q 6) Graph each of the ratios above in a single chart.
Q 7) Which of the above measure most accurately depicts the profitability of the insurance industry over the last 5 years?
Ans 7) Combined ratio is a partial measure of profitability used by an insurance company to indicate how well it is performing in its daily operations. A ratio below 100% indicates that the company is making underwriting profit while a ratio above 100% means that it is...
...Ratio and Proportion
• If 2 numbers are in ratio a: b then consider them as ax and bx (where x is the proportionality constant) and apply ax and bx in the given condition of the problem to proceed for answer
• Ratio can be applied between 2 units if and only if the same physical quantity is compared
• Length : length is correct
• Length : density is wrong
• Ratio can be made only after the units are compared in the same unit
• If two lengths are 1 mile and 1 km respectively then ratio 1:1 is incorrect.
• It should be 1.6:1 = 16:10 = 8:5 being converted to km
• Ratio of a to b = a : b = a / b where a and b are the terms of ratio wherein a = first term = antecedent and b = second term = consequent
• In a problem, to maintain the same ratio, if the antecedent is multiplied / divided by an integer / fraction then the consequent must be multiplied / divided by the same integer / fraction
• Ratio is expressed in lowest terms.
• As every number corresponds to its part in ratio, it is involved so the number of unit differences in the ratio, expressed in lowest terms, corresponds to the actual difference of true figures. Hence similar is with the aggregate values.
• If a number is to be proportionately changed in a given ratio then the antecedent refers to the given number. Hence find the...
...(what is on order) 5. Lead times (how long it takes to get various components)
Chapter 14  Discussion Question # 13, page 576: What are the typical benefits of ERP? Allows companies to automate and integrate many of their business processes, share a common database and business practices throughout the enterprise, and produce information in real time. It also reduced transaction costs and fast, accurate information.
Chapter 15  Discussion Question # 4, page 610: Name five priority sequencing rules. Explain how each works to assign jobs. First come, first served (FCFS): or first in, first out (FIFO): Jobs are sequenced in the order in which they arrive at the work station
 Earliest due date CEDE): Jobs are sequenced in the d L which they are due for delivery to the
 Shortest processing time (SPT): Jobs are sequenced in order of the processing time required at the work station, with the job requiting the least processing time at the work station scheduled first.
 Longest processing time (LOT): Jobs are sequenced in order of the processing time required at the work stations with the job requiring the longest processing time at the work station scheduled first.
 Critical ratio (CR): Jobs are sequenced in order of increasing critical ratio (the ratio of time required by work left to be done to time left to do the work)
Chapter 15 – Discussion Question #12, page 610: What are the advantages to...
...STRUCTURE – RATIO ANALYSIS 
FINANCIAL MANAGEMENT 
GROUP 10 

MBA (BANKING AND FINANCE) 
TERM II

SUBMITTED BY:  DEEPTI SHARMA  DEVANSHU JUNEJA 
ROLL NO. :  067  068 
MOBILE NO. :  07737801787  09602869642 
INDIVIDUAL CONTRIBUTION  Undertook entire calculation and analysis for Anuh Pharmacy and Lincoln Pharmacy in addition to part analysis of Dishman Pharmacy and the industry ratios  Undertook entire calculation and analysis for Vivimed Laboratories and Torina Pharmacy in addition to part analysis of Dishman Pharmacy and the industry ratios 
OBJECTIVE:
Through this study, we have tried to compare and analyse the following 3 ratios for 5 pharmaceutical companies’ visàvis the industry average for these ratios.
1. DebtEquity ratio,
2. Current ratio, and
3. Interest coverage ratio
The 5 companies analysed include:
1. Vivimed Labs
2. Anuh Pharma
3. Tonira Pharma
4. Lincoln Pharmaceuticals
5. Dishman Pharmaceuticals & Chemicals
FACTS AND ASSUMPTIONS:
As for the industry averages and industry best ratios, we have taken the BSE Healthcare index, and treated it as a representative of the entire Pharmaceutical industry in India.
The ratios of each company within the index have been multiplied with the weight of the company within the...