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Common stockholder/Prospective owner

1. Common stockholder/Prospective owner:

a. Indicate whether or not you would purchase the stock of this company at a current market price of $24 per share.

b. Justify your decision using at least three reasons that are based upon the ratios you calculated.

2. Common stockholder/Current owner:

a. Indicate whether or not you would keep your shares of stock based on the company's current performance.

b. Justify your decision using at least three reasons that are based upon the ratios you calculated.
3. Short-term creditor:

Your company is a supplier to Company A and offers the company credit on 45-day terms.

a. Indicate whether or not you should modify your agreements and terms with the company.

b. Justify your decision using at least three reasons that are based upon the ratios you calculated.
4. Long-term creditor:

Company A has applied for a $150,000 line of credit at your bank.

a. As the loan officer, indicate whether or not you would approve the request for the line of credit.

b. Justify your decision using at least two reasons that are based upon the ratios you calculated.

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Question
Please answer the following per the template attached.
1. Common stockholder/Prospective owner:

a. Indicate whether or not you would puchase the stock of this company at a current market price of $24 per share.

b. Justify your decision using at least three reasons that are based upon the ratios you calculated.

2. Common stockholder/Current owner:

a. Indicate whether or not you would keep your shares of stock based on the company's current performance.

b. Justify your decision using at least three reasons that are based upon the ratios you calculated.
3. Short-term creditor:

Your company is a supplier to Company A and offers the company credit on 45-day terms.

a. Indicate whether or not you should ...

Solution Summary

The common stockholders and prospective owners are examined.

$2.19