Questions from Financial Management

Q: You’ve just joined Sea Craft Inc., a manufacturer of fiberglass boats

You’ve just joined Sea Craft Inc., a manufacturer of fiberglass boats, as its CFO. When you took the job, you knew that the company was not in the best of financial condition. Profits are adequate, b...

Q: You're the newly hired CFO of a small construction company. The

You're the newly hired CFO of a small construction company. The privately held firm is capitalized with $2 million in owner's equity and $3 million in variable rate bank loans. The construction busin...

Q: The engineering department at Digitech Inc. wants to buy a new

The engineering department at Digitech Inc. wants to buy a new, state-of-the-art computer. The proposed machine is faster than the one now being used, but whether the extra speed is worth the expense...

Q: Whitefish Inc. operates a fleet of 15 fishing boats in the

Whitefish Inc. operates a fleet of 15 fishing boats in the North Atlantic Ocean. Fishing has been good in the last few years, as has the market for product, so the firm can sell all the fish it can c...

Q: Comment on the value of the formula (EFR) approach to

Comment on the value of the formula (EFR) approach to estimating funding requirements. Could it create more problems than it solves?

Q: The Capricorn Company is launching a new venture in a field related

The Capricorn Company is launching a new venture in a field related to, but separate from, its present business. Management is proposing that financing for the new enterprise be supplied by a local b...

Q: Wilson Petroleum is a local distributor of home heating oil. The

Wilson Petroleum is a local distributor of home heating oil. The firm also installs and services furnaces and heating systems in homes and small commercial buildings. The customer service department...

Q: The Armageddon Corp is in big trouble. Sales are down and

The Armageddon Corp is in big trouble. Sales are down and profits are off. On top of that, the firm's credit rating has been reduced so it's facing very high interest rates on anything it borrows in...

Q: You're the CFO of a small company that is considering a new

You're the CFO of a small company that is considering a new venture. The president and several other members of management are very excited about the idea for reasons related to engineering and marke...

Q: You're the CFO of Axelrod Trucking, a privately held firm whose

You're the CFO of Axelrod Trucking, a privately held firm whose owner, Joe Axelrod, is interested in selling the company and retiring. He therefore wants to pump up its value by any means possible....