Question
The CEO of your company is forming a task force to review the financials and present a review for acquisition of ABC Company. Based on
The CEO of your company is forming a task force to review the financials and present a review for acquisition of ABC Company. Based on ABCs previous 3 years of financials, determine if this would be a good acquisition. You must form the task force to complete the task. Using each departments area of expertise, what information would each of the following departments contribute to the final decision? Provide a one-paragraph response for each department.
Finance Department
Sales Department
Marketing Department
finance ratios
debt ratio- 60.04% (2015) 62.02% (2014) 67% (2013)
debt-to-equity- 1.50 (2015) 1.63 (2014) 2.06 (2013)
times interest- 10.99 (2015) 11.46 (2014) 15.62 (2013)
sales department
return on equity .20 (2015) .21 (2014) .34 (2013)
return on assets .08 (2015) .08 (2014) .11 (2013)
net profit margin .03 (2015) .03 (2014) .05 (2013)
operating profit margin .034 (2015) .034 (2014) .047 (2013)
market ratios
earnings per share- 8.62 (2015) 7.79 (2014) 5.37 (2013)
price earnings - 1.169 (2015) 1.15 (2014) 1.58 (2013)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started