Question

case 1

Financial ratio Analysis

Using the financial ratio analysis technique , please calculate the key financial ratio and evaluate the performance of Novella LTD and discuss. The financial statement are on pages-23-27.

Case 2

Financial Performance of Dell Computer:

Discuss the calculated Financial ratio on page 10- Exhibit 6, and make recommendation for your CEO. Ratio definition are given on exhibit 11

case 3

Developing Financial insights: Using FV and PV approach:

Discuss what is FV, how do we use FV, what is PV, when is PV applicable , and why

Case 4:

Nike, Inc.: Cost of Capital

1. What is the WACC and why is it important to estimate a firm’s cost of capital? Do you agree with Joanna Cohen’s WACC calculation? Why or why not?

2. If you do not agree with Cohen’s analysis, calculate your own WACC for Nike and be prepared to justify your assumptions.

3. Calculate the costs of equity using CAPM, the dividend discount model, and the earnings capitalization ratio. What are the advantages and disadvantages of each method?

4. What should Kimi Ford recommend regarding an investment in Nike?

Case 5

Eurolnad Food SA

The case is about strategic resource allocation,

1. Prepare to discuss the strengths and weaknesses of the various measures of investment attractiveness as used by Euroland Foods. Will all of the measures rank the projects identically? Why or why not?

2. Please rank the 11 proposals on the basis of purely economic considerations. Then rank them a second time based on any other considerations that you believe are important. Are the rankings identical? Why or why not?

3. Which set of projects should Wilhelmina Verdin recommend to the board of Euroland Foods for the capital budget for 2001?

Case 6

An Introduction to Debt Policy and Value

1. The first aim of this exercise is to illustrate Modigliani and Miller’s (M&M) theory about the relationship between debt and firm...