Q 1. After examining the industry outlook and the company's future plans, Henry believes that the stock price of Nintendo Co. will move significantly but is unsure as to which direction. He is sure that the stock will do anything except remain stagnant. Which of the following strategy should Henry opt for?
Ryan’s Computer Ltd published its financial figures for the year ended 2016 yesterday and it had the following information:
|8% Preference Dividends||$500,000|
Eden Hazard has asked you to provide him information regarding a probable need of cash to maintain his liquidity status after 3 years. He must not fall below $50,000 in cash levels adjusting with the time value of money; if he does, he needs to manage it by taking a loan. He gives you information about cash inflow estimating to be $181,000, $130,000 and $268,000 for the next 3 years.
Cash outflow is estimated to be $178,000, $142,000 and $198,000. He also tells you his depreciation per year will be $15,000 consistently. He used Discounting Factor of 10%. Does he have to take a loan? And if so, by how much?