SouthernCross University ACC81210 (Accounting for Managers) SP1, 2016

Assignment 3 - Case study

Is this Case study available.

The Keen Clothing Company, a manufacturer of sporting goods and accessories, has the opportunity to purchase a large parcel of shares in Alpine Sportswear, one of its major customers.

Alpine is an unlisted company so shares cannot normally be purchased in the share market.

The shares are being offered at a price of $1.48 each. The directors of Alpine claim that a dividend yield of 10% has been maintained for several years.

You are asked by the directors of Keen to advise them on the offer. Prepare a report which sets out an assessment of the profitability, liquidity, efficiency and financial condition of Alpine Sportswear. Your report should also indicate potential strengths and weakness in the financial management of Alpine.