BU121 Chapter Notes -Financial Statement, Income Statement, Net Present Value
Document Summary
Focus on: the key issues in the case and their relevance to course content, the analytical tools you can use in the case, how you will focus your analysis. If financial statements included, look at what you are given: what questions the ratios can help answer, analyze the impact of alternatives on profitability. Increasing resources to better accomplish some purpose: take on more debt to try and increase revenue, financial leverage = debt that is levered, operating leverage = fixed costs that are levered. Identify costs or benefits that change as a result of choosing different alternatives: net incrimental benefit = incrimental revenue - incrimental costs. Swot analysis: s = organizational strengths, w = organizational weaknesses, o = external factors that are opportunities, t = external factors that are threats, some combinations of these include: Taking advantage of opportunity within the companies strengths. Turning a threat into an opportunity by capitalizing on its strengths.
