These locations are thus the operational locations of the bank. The bank has been operated throughout the past 115 years and during this long term history, banking system all over the world has underwent a lot of change with respect to the technologies along with innovated products and services. The most interesting feature of the bank is that its mode of operating and doing business within the community did not change along with the market trend during its past numerous years of existence. The Chairman of Capital City Bank Group believes that his bank provides a favorable environment to the employees who work over there and provides great benefits to them through promotion of family values and various other amenities for making them feel like home (Capital City Bank Group, 2011). Capital City Bank Group is an outstanding performer in the US banking industry and the bank holds an excellent position of repute not only within the industry but within the business communities as well. The success of the bank is evident through the various achievements it has attained throughout its years of operations within the industry. During the recent past, the bank has expanded towards a wide geographical location outside the area of Tallahassee. Along with expansion through physical location spreading, the bank has also increased its reach of client towards various locations of the country (Capital City Bank Group, 2011). Capital City Bank Group is a financial services company which comprehensively values to its customers and this form of the bank’s business operations has added genuine value towards the prospect of the company. The prospect will be validated in the next sections of this research paper in terms of ratio and trend analysis of the banks’ performance over the past three years and projecting those of the future three years. Along with the projection of future performance of the bank, the stock performance will also be compared with that of S&P’s 500 Index for evaluating the prospect of investing in the bank’s stocks. Ratio Analysis The ratio analysis and the trend analysis in this section will be performed with the help of past three years’ financial figures collected from the annual reports of Capital City Bank Group. The sources from where the data related to financial performance of the bank has been collected have been provided at the end of this research report. Ratios Actual 2008 Actual 2009 Actual 2010 Projected 2011 Projected 2012 Projected 2013 Liquidity Ratios Current Ratio= Current asset / current liability 1.34 0.96 1.86 1.89 1.94 1.98 Debt to equity ratio= Total liabilities / Owner’s equity 7.53 8.13 8.99 9.23 9.46 9.55 Operating Efficiency Ratio 64.91 % 77.33 % 84.23 % 86.25 % 88.37 % 92.33 % Profitability Ratios Return on sales or profit margin= (Net profit / Net Sales) *100 10.66 % - - 2.89 % 3.56 % 6.89 % Return on assets= (Net Profit / Total Assets)*100 0.59 % - - 0.52 % 0.56 % 0.62 % Return on equity= (Net profit / Owner’s equity)*100 5.06 % - - 4.11 % 6.45 % 9.12 % Note: Ratios related to net profit during the years 2009 and 2010 have been kept blank due to the reason that
Financial Research Report Company Overview Capital City Bank Group is a financial services company which is indulged in providing services related to the traditional system of deposits and credits. The bank is a holding company of the Capital City Bank and it also deals with various other forms of financial services like that of asset management, trust, providing financial assistance with mortgages, merchant banking, various cards inclusive of debit and credit card, processing of data and also services in relation to brokering of securities (Google Finance, 2011)…
YEAR 1 t= 1 yr S=P(1+rt) 158000= P(1+(0.07)(1)) P= $147663.55 S= 246000 r= 7% P= ? YEAR 2 t= 2 yr S=P(1+rt) 246000= P(1+(0.07)(2)) P= $215789.47 S= 289000 r= 7% P= ? YEAR 3 t= 3 yr S=P(1+rt) 289000= P(1+(0.07)(3)) P= $238842.97 Amount you have to invest today for all 3 future payments is: P= $602296 Money on hand today is worth more than tomorrow, therefore it is important that we understand the concept of time value of money.
List the bonds in the most likely order of the interest rates (yields to maturity) of the bonds from highest to lowest. Explain your work. Answer: X: A corporate bond rate BBB W: A corporate bond rate AAA Y: A corporate bond rated AAA with a shorter time to maturity than bonds W and X Z: A corporate bond rated AAA with the same time to maturity as bond Y that trades in a more liquid market than bonds W, X, or Y There has always been a strong relationship between the risks attached to a security with the return earned on a security, and this risk-return trade off tells us return which one should expect on a security which has high level of uncertainty (high risk) or low level of uncer
For example, a metal fabrication press, which bends and shapes metal, was bought seven years ago for $522,000. The company will add l9 percent to this cost, representing the change in the wholesale price index over the seven years. This new, higher cost figure is depreciated using the straight-line method over the same l2-year assumed life (no salvage value).
For the results of the study conducted on the sample to be held true for the entire population, the sample should be a representative sample – that is, it should possess the same characteristics as the entire population, or as close to it as possible. A statistic is a characteristic that describes a sample; a parameter is a characteristic that describes a population.
According to accounting concepts, as long as business is going concern it should state all its assets on book value rather than on NRV. This means that since we have no intention of closing down, we are going to write it down at the book value, regardless of what our NRV is.
This cost has been calculated on the basis of traditional costing system. The Direct Material cost and Direct Labour has been calculated on the basis of total production units. The overhead costs have been allocated to products on the basis of traditional costing system.
This shows that company has no problem in paying off its debts. The position of Jones Corporation is also good and it will have no problem in paying off its debts. Since, both firms can pay-off their debts easily given the situation let's now eliminate the illiquid current asset factor from our ratio calculation.
(i) Sofia buys 200 shares in Disney Corporation: In this case if these are newly issues shares then this constitute the primary market but if the stocks were previously issued then this constitute the secondary market. The capital market is a security market for long term borrowing while the money market is a market for short term borrowing; in this case therefore the transaction is part of the money market.
A car with an engine size less than 1.8L considered as the small engine size car and a car with an engine size greater or equal to 1.8L considered as the bigger engine size cars.
The results indicated that there is a strong negative linear
Free cash flow model of valuation estimates value of a firm based on its fundamentals. The company is expected to pay its shareholders based on intrinsic value of the firm. In addition, this value is reflected by net present cash flow. It’s
3 pages (750 words)Math Problem
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