(a) Are customers of MOD Ltd. paying off their invoices slower in 2006 than they did in 2004? Support your answer.

(b) Comment on the liquidity of MOD Ltd. over the last 3 years. Support your answer.

(c) MOD Ltd.s dividend per share has remained the same for the last 3 years at $4.10. Do you believe that this is keeping in line with the trend in its financial performance?

(d) Should Carmine Martin invest in MOD Ltd.? Explain your decision.

Carmine Martin, the chief finance officer of Conservation Ltd., wants to invest in a small company MOD Ltd., whose financial information for the last three years is summarised in the following table: 2005 2.5 2006 3.0 0.6 7.0 6.5 $4.10 0.145 0.15 2004 Current ratio uick ratio Debtors turnover Inventory turnover Dividends per shar Return on assets (ROA Return on equity (ROE 8.2 7.7 $4.10 0.131 0.14 10.5 8.8 S4.10 0.116 0.09 Industry average ROE 0.05 0.07 0.08 Before Carmine can make his investment decision, he would like to know the answers to the following questions about the trends in MOD Ltd.'s financial performance