Question
? Help Financial Experts: Please answer all questions a through d You are given with the following information of a firm Hunger Game in food
?Help Financial Experts: Please answer all questions a through d
You are given with the following information of a firm "Hunger Game" in food industry. Assume that the firm did not issue preferred stocks while the firm may have some foreign subsidiaries overseas. The firm is making hi-tech instruments for medication. This industry tends to have gross profit margin such as 18% and other set-up costs are also high due to the production and technology. The R&D (Research and Development) costs are entirely reported as operating expenses according to the GAAP
a)Perform the Ratio Analysis for the firm. (Present all ratios you know.) Will the accounting policy on revenue recognition influence the ratios? Why or why not?
b)Show the Common-Size Statements for Company Hunger Game.
c)Given your result in a), what is your opinion on the firm's performance so far? What is the firm's strategy in raising capital? What are the firm's possible business and financial strategies in your opinions?
d) Given the above information, what will be possible dividend per share for 2013 of Company Hunger G ame? Suppose the firm has 6 million shares of stock issued in the market, what is the possible required rate of return for their stock if you based on the shareholders equity of 2013?
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