Ans both the questions

Discuss the importance and benefits of corporate analysis in the construction industry. Describe also the financial ratios that are used to measure a company's financial standing. A construction company started business in January 2019 and is in the process of producing the budget for the year 2020. During the year 2019, the contractor won and started four contracts. The value, starting date, duration and profit are as follows: Contract Value (M) Profit (M) Month Started 2019 March Duration (Months) 20 1 15 1.5 2 12 10 1.0 3 April May December 9 9 0.9 4 20 12 1.2 a) Calculate the turnover for the year 2020 if no more contracts are won during that year (assume a uniform rate of value build up on any contract). b) Calculate the total value and number of contracts to be won during the for the contractor to be able to achieve the following profit targets: year 2020 i. Pay the second annual instalment of a 10 million loan taken at the beginning of the 2019 to be settled in equal annual instalments within 10 years (assuming 10% compound interest rate). ii. Pay Dividends of 400,000 ji. Retain profit of 1,000,000 You may assume that the average duration of projects to be started in 2020 is 15 months and an average contract is worth 6 million. c) While analysing the market, it was found that the contractor, during 2019, had a market share (value of work executed by contractor versus the total executed in the market for that year) of only 12%. If demand for construction in this market is expected to increase by 15% in 2020, calculate the required market share the contractor has to achieve in order to meet the profit targets set in (b) above