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Case
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Reference no. 9A99N023
Published by: Ivey Publishing
Originally published in: 1999
Version: 2000-06-11
Length: 11 pages
Data source: Generalised experience

Abstract

Dawson Lumber Company, experiencing rapid growth in the mid-1990s, has requested a $10.8 million working capital loan from the National Bank of Canada. This loan request is based on the assumption that Dawson''s growth will continue at an increasing rate. The vice president of the bank must analyze Dawson''s performance and give a reply. This case is a good vehicle to reinforce or introduce financial analysis. It synthesizes the relationship between ratio analysis and projected financial statement development. It also presents an interesting perspective in which the bank must balance risk with the effort it extended to acquire Dawson as a client.
Location:
Size:
Medium
Other setting(s):
1999

About

Abstract

Dawson Lumber Company, experiencing rapid growth in the mid-1990s, has requested a $10.8 million working capital loan from the National Bank of Canada. This loan request is based on the assumption that Dawson''s growth will continue at an increasing rate. The vice president of the bank must analyze Dawson''s performance and give a reply. This case is a good vehicle to reinforce or introduce financial analysis. It synthesizes the relationship between ratio analysis and projected financial statement development. It also presents an interesting perspective in which the bank must balance risk with the effort it extended to acquire Dawson as a client.

Settings

Location:
Size:
Medium
Other setting(s):
1999

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