Finance: Analysis of CTI Inc.
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Using the attached article prepare a 500 word analysis about the article.
Include the major point(s) made, application(s) to Financial Management, the any of the concepts reinforced from the class objectives, and a summary.
Here are the class objectives:
TIME VALUE OF MONEY, VALUATION, AND RATE OF RETURN
? Calculate present value and future value for single amounts, annuities, and uneven streams of cash flow.
? Identify various financial applications of the time value of money.
? Calculate the present value of bonds, preferred stocks, and common stocks using required rates of return (yield to maturity for bonds).
CAPITAL BUDGETING
? Describe the importance and role of capital budgeting in organizations.
? Make capital budgeting decisions utilizing alternative capital budgeting decision models and risk analysis techniques.
? Prepare a lease versus buy analysis to determine the advantages and disadvantages of leasing.
LONG TERM FUNDING
? Analyze the impact of leverage on earnings and risk.
? Describe the characteristics of various debt and equity instruments.
? Analyze dividend policy and derivatives strategies in relation to maximizing shareholder wealth.
CAPITAL STRUCTURE AND COST OF CAPITAL
? Calculate an organization's Weighted Average Cost of Capital (WACC).
? Explain how optimal capital structure is determined using the Capital Asset Pricing Model (CAPM) and Weighted Average Cost of Capital (WACC).
? Explain the relationship between cost of capital, bond ratings, and the capital budgeting decision-making process.
MERGERS, ACQUISITIONS, AND INTERNATIONAL FINANCE
? Assess the effects of mergers and acquisitions on the value of a firm.
? Assess the important issues in international financial management.
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Solution Summary
549 words, APA
Solution Preview
The response addresses the queries posted in 620 words with references.
//Before analyzing any Company, the general information regarding that firm is essential. So, firstly, we will discuss about the CTI Inc and a summary of given article so that subsequent analysis can be made effectively. //
CIT Inc.
It is a commercial finance company and provides financing and leasing capital for companies and consumers in various industries. Its major products are asset based loans; secured lines of credit; import and export financing; operating, capital, and leveraged leases; acquisition and expansion financing; project financing; transportation finance; small business loans; student loans, etc.
Summary of the article
CIT Group Inc. Made its credit lines and plans reach at the highest level to sell billions of dollars in loans because the company is finding it difficult to raise money in the turbulent markets. CIT Group is expecting to increase investment made in loans and for this purpose, it is looking for a partner who can ...
Education
- MBA (IP), International Center for Internationa Business
- BBA, University of Rajasthan
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