FIN 419 Expect Success/uophelp.com FIN 419 Expect Success/uophelp.com | Page 36

8. Find the industry ratios for the company using the Dun &
Bradstreet® Key Business Ratios. Locate the Dunn & Bradstreet
Database by accessing the University of Phoenix Library and then
locating Library Resources. Click on Alphabetical List of Resources
and find Dunn and Bradstreet. Click on the link and search for your
selected company. ISC is a manufacturing company of plastic parts
for the automotive industry – try and select a company closest to our
company. Please use 3089 Plastic Products and NAICS of 326199 for
manufacturing using 2014 data and the lower amount. Only provide
the Quick and Current Ratios from 2015/2016 from problem 7 and
add the ratios from Dun & Bradstreet to compare and briefly suggest
what direction ICS should head into with the comparison.
9. ICS plans to expand their operations as stated in Problem 5 –
and are considering taking the loan – however, they have a few
investors that are interested in lending money for this venture. They
need a total of $775,000, and if they lend the money today, ICS will
repay it, with interest, at the end of the year. Company A agrees to
lend $300,000 and they require 5% interest, Company B will lend
$200,000 at 6% interest, and Company C will loan the balance but
they won’t settle for less than 10% interest. What is the weighted
average cost of this capital (WACC)?

10. In 250-350 words, explain what cash flow is and why cash is so
important to a business.
Include in your analysis the cash that ICS maintains on hand and
whether it is sufficient or not.
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FIN 419 Week 5 Individual My FinanceLab (with Excel File)

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