As a potential lender considering making a long-term loan to a company, discuss how much comfort you might get from knowing what long-term assets the company has, specifically in the form of (1) property, plant, and equipment and (2) goodwill. As well as the existence of these assets, what else would you like to know?
Answer to relevant QuestionsSuppose you are considering investing in a particular bond. In assessing the riskiness of the bond, discuss the importance of being aware of the seniority of various company liabilities. Suppose that your company leases a valuable asset and you are a manager whose compensation partially depends on the company meeting a particular earnings target. Required: a. How is your ability to meet the earnings target ...Alimentation Couche-Tard Inc. operates over 8,000 convenience stores in North America, Scandinavia, Poland, the Baltics, and Russia. The Laval, Quebec–based company generates income primarily from the sale of tobacco ...Wasselec’s Moving and Storage Ltd. is a small company based in Hamilton, Ontario. It operates in both the residential and commercial markets. To serve its various clients, Wasselec’s owns two large moving trucks ...When a company declares stock dividends, it is some- times said that it has “capitalized a portion of its retained earnings.” Explain why.
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