Sola sa is a British company specialized in water supplies. It has a big activity, and wishes to reduce its risks. It operates in a challenging environment, and subject to fluctuations in prices on financial markets. It imports some raw materials from China, and sells to France and other European countries. Its Financial manager gives you the followings : Loans borrowed : GBP 100,000 at 5% Loans to employees : GBP 75,000 at 3% Money at bank: GBP 450,000 at 2% Calculate the net interest margin for Sola? What are the major risks facing the company? Could you identify the related examples?
Sola sa is a British company specialized in water supplies. It has a big activity, and wishes to reduce its risks. It operates in a challenging environment, and subject to fluctuations in prices on financial markets. It imports some raw materials from China, and sells to France and other European countries. Its Financial manager gives you the followings : Loans borrowed : GBP 100,000 at 5% Loans to employees : GBP 75,000 at 3% Money at bank: GBP 450,000 at 2% Calculate the net interest margin for Sola? What are the major risks facing the company? Could you identify the related examples?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Sola sa is a British company specialized in water supplies. It has a big activity, and wishes to reduce its risks. It operates in a challenging environment, and subject to fluctuations in prices on financial markets. It imports some raw materials from China, and sells to France and other European countries. Its
Loans borrowed : GBP 100,000 at 5%
Loans to employees : GBP 75,000 at 3%
Money at bank: GBP 450,000 at 2%
- Calculate the net interest margin for Sola?
- What are the major risks facing the company?
- Could you identify the related examples?
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