Corporate finance case study

Topics: Revenue, Generally Accepted Accounting Principles, Net income Pages: 3 (517 words) Published: February 23, 2014
EF4313 - Individual Case Questions:
“Massey-Ferguson, Ltd. (1980)”

You are responsible for handing in written answers to the following questions drawn from the Massey-Ferguson case. You can work with others on this assignment, but each individual must hand in their own set of answers.

1. Net sales for Massey-Ferguson actually increased between 1979 and 1980. Despite this, net income and income from continuing operations both dropped sharply in 1980. Which item on the income statement was most responsible for this drop in income?

2. Why would the Canadian government have any interest in helping Massey-Ferguson refinance its debt?

3. Why would it be difficult for Massey-Ferguson to conduct an equity issue to pay down its debt?

You are responsible for handing in written answers to the following questions drawn from the Massey-Ferguson case. You can work with others on this assignment, but each individual must hand in their own set of answers.

4. Net sales for Massey-Ferguson actually increased between 1979 and 1980. Despite this, net income and income from continuing operations both dropped sharply in 1980. Which item on the income statement was most responsible for this drop in income?

5. Why would the Canadian government have any interest in helping Massey-Ferguson refinance its debt?

6. Why would it be difficult for Massey-Ferguson to conduct an equity issue to pay down its debt?

You are responsible for handing in written answers to the following questions drawn from the Massey-Ferguson case. You can work with others on this assignment, but each individual must hand in their own set of answers.

7. Net sales for Massey-Ferguson actually increased between 1979 and 1980. Despite this, net income and income from continuing operations both dropped sharply in 1980. Which item on the income statement was most responsible for this drop in income?

8. Why would the Canadian government have any interest in...
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