Product details

An industrial supply company finds itself desperately short of warehouse space and must decide how much financing would be required for an extension to its building. The president must review the firm''s past and future financial positions to determine the amount of financing required, and to prepare to overcome any objections or concerns with regard to the loan which may be expressed by the bank. This comprehensive case covers the following aspects of introductory finance: (1) past financial performance (Statement of Sources and Uses, ratio analysis); (2) projecting future financial statements; (3) term of the loan analysis (including sensitivity and seasonality); (4) risk analysis (collateral, capacity to repay, character and conditions); (5) alternative evaluation; and (6) decision making.