Instruction
Students will perform a case study analysis on a hypothetical firm posed with a financial predicament, and write a reflection paper on their recommendation and findings. In assessing the case, students will analyze the firms financial position, and will calculate and measure the firms return on investment measures.
To complete this assignment, students must complete the following two steps:
Read Clarkson Lumber Company case study, available on Harvard Business Publishing
Write and submit a reflection paper on the questions outlined below
Questions to be Addressed in Reflection Paper
Why has Clarkson Lumber borrowed increasing amounts despite its consistent profitability?
How has Mr. Clarkson met the financing needs of the company between 1993-1995?
Do you agree with Mr. Clarksons estimate of the companys loan requirements? How much will he need to finance the expected expansion in sales to $5.5 million in 1996 and to take all trade discounts?
As Mr. Clarksons financial advisor, would you urge him to go ahead with, or to reconsider, his anticipated expansion and his plans for additional debt financing?
As the banker, would you approve Mr. Clarksons loan request, and if so, what conditions would you put on the loan?
Paper Guidelines
Accessing the Case Study
Students must obtain the following case study from Harvard Business Publishing: Clarkson Lumber Company (ID: 9-297-028)
Paper Guidelines
All of the aforementioned sections must be addressed in the paper
All papers must be in APA format
All references MUST be cited
Papers should be double spaced, 12 pt font, 2-3 pages in length