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I need answers for 7, 8 & 9 QUESTIONS 1. Calculate the firm's 1996 ratios listed in Exhibit 3. 2. Part of Hamilton's evaluation will

I need answers for 7, 8 & 9image text in transcribed

QUESTIONS 1. Calculate the firm's 1996 ratios listed in Exhibit 3. 2. Part of Hamilton's evaluation will consist of comparing the firm's ratios to the industry numbers shown in Exhibit 3. (a) Discuss the limitations of such a comparative financial analysis. (b) In view of these limitations, why are such industry comparisons so frequently made? 3. Hamilton thinks that the profitability of the firm to the owners has been hurt by White's reluctance to use much interest-bearing debt. Is this a reasonable position? Explain. 4. The case mentions that White rarely takes trade discounts, which are typically 1/10, net 30. Does this seem like a wise financial move? Explain. 5. Calculate the company's market-to-book (MV/BV) ratio. (There are 5,000 shares of common stock.) 6. Hamilton's position is that White has not competently managed the firm. Defend this position using your previous answers and other information in the case. QUESTIONS 1. Calculate the firm's 1996 ratios listed in Exhibit 3. 2. Part of Hamilton's evaluation will consist of comparing the firm's ratios to the industry numbers shown in Exhibit 3. (a) Discuss the limitations of such a comparative financial analysis. (b) In view of these limitations, why are such industry comparisons so frequently made? 3. Hamilton thinks that the profitability of the firm to the owners has been hurt by White's reluctance to use much interest-bearing debt. Is this a reasonable position? Explain. 4. The case mentions that White rarely takes trade discounts, which are typically 1/10, net 30. Does this seem like a wise financial move? Explain. 5. Calculate the company's market-to-book (MV/BV) ratio. (There are 5,000 shares of common stock.) 6. Hamilton's position is that White has not competently managed the firm. Defend this position using your previous answers and other information in the case

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