Question: (iii ) While Diamond's ROA and ROCE both went down in 2011 compared to 2009, the relative reduction in the ROCE is much less. Why?

(iii ) While Diamond's ROA and ROCE both went down in 2011 compared to 2009, the relative reduction in the ROCE is much less. Why? (c) Refer to the statements of cash flows provided in Case Exhibit 2, Panel C. What are the likely reasons for changes in Diamond's cash position during 2006-2011? (d) Has the short-term liquidity risk and long-term solvency risk of Diamond changed during 2007-2011? Is Diamond faced with the prospect of violating any of its debt covenants in 2011? (e) At the end of FY 2011, did Diamond face a prospect of violating its debt covenants? Explain

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