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Prior to the board meeting, you should take a look at and prepare the following financial information: 1. Analyse the liquidity ratios 2. Analyse

 

Prior to the board meeting, you should take a look at and prepare the following financial information: 1. Analyse the liquidity ratios 2. Analyse the solvency ratios 3. Review the viability position of the two business divisions 4. Determine the current WACC and optimal WACC for the business 5. Determine the NPV for the two projects You will be permitted to bring this information into the exam and you should use this information to justify your answers to the board. Note: In order to get good marks for the exam questions you will need to use the exact financial information you have prepared, with correct answers as well as a well thought out analysis of what the information means.

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1 Liquidity ratios Liquidity ratios assess a companys ability to meet shortterm obligations Key liquidity ratios include the current ratio and quick ratio The current ratio is calculated by dividing c... blur-text-image

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