Financial Analysis at CD's AGM

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What are some benefits CD has experienced from positive publicity in the media?

CD has received entrepreneurial awards and positive media coverage.

What is the target for CD's expenditure on research and development by 2025?

CD plans to increase R&D spending to 3% of revenue by 2025.

How does CD plan to ensure that its products are sustainable?

CD aims to use materials that are not harmful to the environment.

How has CD responded to the increase in the cost of materials used to manufacture its products?

CD has absorbed the additional costs. Signup and view all the answers

Why does Gianni want to increase the price of clothing detergent from $4.00 to $4.60 per unit?

To offset the rising costs and maintain profitability. Signup and view all the answers

How does CD source most of its chemicals to reduce environmental impact?

CD sources most chemicals locally. Signup and view all the answers

What is the current price elasticity of demand for the detergent?

-0.6 Signup and view all the answers

How many units of detergent are currently sold per month?

100,000 units Signup and view all the answers

How has the government's decision to increase interest rates affected country K's currency exchange rate?

Appreciation Signup and view all the answers

What type of organizational structure does CD currently have based on business functions?

Hierarchical Signup and view all the answers

What structural change does Anna suggest for CD's organizational structure?

Geographical Signup and view all the answers

How has CD financed its expansion?

Loans, retained profit, share capital Signup and view all the answers

What are two benefits to CD resulting from internal economies of scale?

<ol> <li>Cost savings due to increased production efficiency. 2. Ability to negotiate better deals with suppliers due to increased buying power.</li> </ol> Signup and view all the answers

What are two advantages to CD of changing to a geographical organizational structure?

<ol> <li>Better adaptation to local market conditions. 2. Improved coordination and communication among regional teams.</li> </ol> Signup and view all the answers

Calculate the price earnings ratio for CD in 2024 using Table 1.1.

Price Earnings Ratio = Market Price per Share / Earnings per Share. Therefore, Price Earnings Ratio = $4.00 / $0.6 = 6.67 Signup and view all the answers

Calculate the return on capital employed for CD in 2024 using Table 1.1.

Return on Capital Employed (ROCE) = (Profit from Operations / (Share Capital + Reserves + Non-current Liabilities)) * 100%. Therefore, ROCE = (2.6 / (3 + 13.5 + 16)) * 100% = 9.63% Signup and view all the answers

Evaluate the usefulness of the data in Table 1.1 to potential shareholders when considering whether to buy shares in CD.

The data in Table 1.1 provides key financial information such as earnings per share, market price per share, current ratio, and dividend yield, which are crucial for potential shareholders to assess the company's performance and financial health. Signup and view all the answers

What are the implications of CD focusing on generating short-term returns to shareholders rather than expanding operations?

Focusing on short-term returns may hinder long-term growth and competitiveness. It could lead to missed opportunities for expansion and innovation. Signup and view all the answers

Financial Analysis at CD's AGM

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