Finance for Managers

A friend has mentioned that she has read somewhere that the following variables can be used to predict bankruptcy: (a) the company debt ratio; (b) the interest coverage; (c) the amount of cash relative to sales or assets; (d) the return on assets; (e) the market-to-book ratio; (f) the recent return on the stock; (g) the volatility of the stock returns. The problem is that she can’t remember whether a high value of each variable implies a high or a low probability of bankruptcy. Can you help her out? Magna Charter has been asked to operate a Beaver bush plane for a mining company exploring north and west of Fort Liard. Magna will have a firm one-year contract with the mining company and expects that the contract will be renewed for the five-year duration of the exploration program. If the mining company renews at year 1, it will commit to use the plane for four more years. Magna Charter has the following choices:  Buy the plane for $500,000.  Take a one-year operating lease for the plane. The lease rate is $118,000, paid in advance. Arrange a five-year, noncancelable financial lease at a rate of $75,000 per year, paid in advance.  These are net leases; all operating costs are absorbed by Magna Charter. How would you advise Agnes Magna, the charter company’s CEO? For simplicity assume five-year, straight-line depreciation for tax purposes. The company’s tax rate is 30%.  The weighted-average cost of capital for the bush-plane business is 14%, but Magna can borrow at 9%. The expected inflation rate is 4%. Ms. Magna thinks the plane will be worth $300,000 after five years. But if the contract with the mining company is not renewed (there is a 20% probability of this outcome at year 1), the plane will have to be sold on short notice for $400,000.  If Magna Charter takes the five-year financial lease and the mining company cancels at year 1, Magna can sublet the plane, that is, rent it out to another user. Make additional assumptions as necessary. 1-2 page and 2 references

Struggling to find relevant content or pressed for time? – Don’t worry, we have a team of professionals to help you on
Finance for Managers
Get a 15% Discount on this Paper
Order Now
Calculate the price
Make an order in advance and get the best price
Pages (550 words)
$0.00
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
Sign up, place your order, and leave the rest to our professional paper writers in less than 2 minutes.
step 1
Upload assignment instructions
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
s
Get personalized services with MyCoursebay
One writer for all your papers
You can select one writer for all your papers. This option enhances the consistency in the quality of your assignments. Select your preferred writer from the list of writers who have handledf your previous assignments
Same paper from different writers
Are you ordering the same assignment for a friend? You can get the same paper from different writers. The goal is to produce 100% unique and original papers
Copy of sources used
Our homework writers will provide you with copies of sources used on your request. Just add the option when plaing your order
What our partners say about us
We appreciate every review and are always looking for ways to grow. See what other students think about our do my paper service.
Social Work and Human Services
Great Work!
Customer 452587, November 2nd, 2021
Financial Statement Analysis
Thanks for the help
Customer 452821, March 10th, 2023
Other
GREAT
Customer 452813, June 25th, 2022
Human Resources Management (HRM)
Thanks for your assistance.
Customer 452701, November 9th, 2022
Human Resources Management (HRM)
Thanks for the prompt delvery.
Customer 452701, January 20th, 2023
Nursing
Thank you for a great paper.
Customer 452707, August 6th, 2022
Strategic Management
Thank you very much for the help, really appreciate it
Customer 452821, June 27th, 2022
Human Resources Management (HRM)
Thanks for the paper. Hopefully this one will receive higher than a C and has followed all guidelines.
Customer 452701, November 16th, 2022
Human Resources Management (HRM)
Thanks for the paper.
Customer 452701, September 15th, 2023
Medicine
Thank you for the great services
Customer 452635, April 24th, 2022
Mental Wellness
The skilled writer did a good job. I will add a few more details. Thank you, great job...
Customer 452547, June 17th, 2021
Human Resources Management (HRM)
Thank you so much.
Customer 452701, October 11th, 2023
OUR GIFT TO YOU
15% OFF your first order
Use a coupon FIRST15 and enjoy expert help with any task at the most affordable price.
Claim my 15% OFF Order in Chat

Good News ! We now help with PROCTORED EXAM. Chat with a support agent for more information

NEW

Thank you for choosing MyCoursebay. Your presence is a motivation to us. All papers are written from scratch. Plagiarism is not tolerated. Order now for a 15% discount

Order Now