Friendly Cards - 972 Words

Friendly Cards, Inc. By: 1. Should Friendly Cards purchase the envelope machine? If so, how? Friendly Cards would be able to purchase the machine for $500,000. This machine would be able to produce the same amount of envelopes that it is currently purchasing for 1.5 million in 1987. The†¦show more content†¦This capital will reduces its financial ratios so they meet the restrictions if it issues the new equity, but it might not be sustainable for the coming years because it is not reoccurring cash flow and Friendly Cards will need to borrow more capital for further growth. If the sales continue to grow at the current rate in the future the ratios could increase again. This would not be good for long-term growth due to the fact that it will sell its stock for a discount and if the other two options are executed the extra capital will not be necessary (See Exhibit 4). New ratios with the issue of new equity (Assuming both envelope machine and Creative Design acquisition take place) | Actual Data | | Projected Data | Ratios | 1985 | 1986 | 1987 | | 1988 | 1989 | 1990 | Bank loan / Receivables | 0.80 | 0.74 | 0.87 | | 0.70 | 0.76 | 0.80 | Liabilities / Equity | 3.00 | 5.22 | 4.72 | | 2.47 | 2.36 | 2.28 | Interest bearing debt / Equity | 1.91 | 3.51 | 3.13 | | 1.49 | 1.42 | 1.35 | Another reason is that this equity will come at a high cost due to the fact that it will lower the EPS and dilute the shares. Due to the stock markets recent crash and down turn, the shares will be sold at a discount and is not worth the capital at this time. Friendly Cards should not sell shares at this time. It will be better off purchasing the envelope machine and acquiring Creative Design Inc to bring itsShow MoreRelatedFriendly Card1090 Words   |  5 Pages ESTIMATION OF GROWTH RATES The value of a firm is ultimately determined not by current cash flows but by expected future cash flows. The estimation of growth rates in earnings and cash flows is therefore central to doing a reasonable valuation. Growth rates can be obtained in many ways: they can be based upon past growth; drawn from estimates made by other analysts who follow the firm; or related to the firms fundamentals. Since each of these approaches yields some valuable information, it makesRead MoreFriendly Cards Case Analysis3519 Words   |  15 PagesInvestment Decisions Summary of Facts Friendly Cards, Inc. (first named Beaumont Greeting Card Co.) is a greeting card company started in 1978, in New York City by Wendy Beaumont. The company has experienced rapid growth, acquiring like companies and expanding its market base. 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The company has never been withoutRead MoreMy Best Friends Invited Me With Pizza And A Friendly Game Of Cards And The Broca s Area878 Words   |  4 PagesMy best friends invited me over for pizza and a friendly game of cards and the Broca’s area, which deals with language and speech; the hippocampus, that plays a crucial part in memory; the hypothalamus, partly controlling my body’s endocrine and hormone- producing system and the occipital lobe allowing me to see all that goes on around me, all are parts of my brain which was involved during the evening of eating p izza, socializing, and playing cards with my friends. First, the part of the brain thatRead MoreEco Friendly Housekeeping3828 Words   |  16 PagesHotels†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..6 4. Eco- Friendly†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.7 5. The Origin†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..7 6. Ecotels†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.............8 7. ECOTEL Certification Services†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦...10 8. Eco Friendly Concept†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦11 9. First World Ecotel†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.............12 10. First Ecotel In India†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..13 11. Housekeeping †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦13 12. Housekeeping and Eco-Friendly†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..............15 13. Eco Friendly Amenities Products and Processes†¦15 14. Eco Friendly Housekeeping †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.17 15. Eco Friendly Products†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Read MoreMy Experience with Target Essay648 Words   |  3 Pageswalked with me towards the counter as I was about to make a purchase. As it was my second time to shop there, she asked me whether I would like to have a Target Master card, she provided me with information about how I can earn the rewards and benefits from using that card. She helped me in following the procedures for applying the card. Ms Aayats professionalism and ability to get to the bottom of the situation quickly exceeded my expectations and I left the store with smile. Later, I thought toRead MoreCase Study Essay793 Words   |  4 Pagessexual harassment policy. Prior to Lewistons termination he was a senior maintenance employee with an above-average work record who had worked for the PCUSD for eleven years. He had been a widower since 2003 and was described by his coworkers as a friendly, outgoing, but lonely individual. 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