Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You work as a financial analyst. Your team are completing analysis of a company called RPA- Business Tech, which trades on the ASX. The company

You work as a financial analyst. Your team are completing analysis of a company called "RPA- Business Tech", which trades on the ASX. The company manufactures technologically advanced temperature control systems for businesses. Its sales are primarily to overseas markets across parts of Asia (China, Singapore, Malaysia). One of your colleagues wants to make a recommendation to your clients to purchase the stock, while another believes it should not be purchased. Use the information below to make your own argument about the stock (either buy, or sell). The information includes the following: a recent ASX Announcement; some Financial Ratios; a graph from the RBA Statement on Monetary Policy.

ASX Announcement

July 20th - 2020.

"The Board and CEO of are publicly listed company RPA-Business Tech Limited, are hereby noting to investors the sale of a number of non-utilised long-term assets. The assets are two factory floor areas (commercial industrial real estate), and a number of redundant machines. The management and board agree that this will increase cash holdings to assist RPA during this period of COVID-19."

In your answer here should use the sources of information provided to make an argument about the company "RPA-Business Tech"? Explain what the ASX announcement suggests about the company - this is a sale of assets to increase cash? Then explain what the ratios tell us?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial accounting

Authors: Walter T. Harrison Jr., Charles T. Horngren, C. William Thom

9th edition

978-0132751216, 132751127, 132751216, 978-0132751124

Students also viewed these Finance questions