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    Exxel Group Case Study

    Number of Pages: 5

     

    Summary of the research paper:

    5 pages in length. Discusses a case study in which the Exxel Group is structuring a fifty-six percent purchase of Argencard Corporation and the finanical considerations that are involved.

    Name of Research Paper File: D0_JGAbostn.doc

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    Unformatted Sample Text from the Research Paper:
    in the middle of structuring a fifty-six percent purchase stake in Argencard, which was the credit card transaction processor for Argentina and Uruguay. In order to finance the transaction  Navarro needs to decide whether it should raise additional funds from its limited partners and other investors. A closer examination of the financial ratios utilized reveals some of the major  considerations involved in this purchase of a percentage of Argencard. As we see, and as Juan Navarro will consider, the assets, total debt, profit margin and other aspects relative  to any business are to be considered in any business takeover or merger whether big or small. The use of profitability ratios defines the measure of profit as related to  the various operating costs of Argencard. The profit margin describes the result when gross operating profit is divided by operating revenue. This figure is important in realizing the  profit per dollar of operating revenue. As Juan Navarro realizes, however, a company such as Exxel that is constantly making big money for its partners and with the inherent  success in so doing, there should not be a problem in attracting capital from all over the world. The earning power, or return on assets, is widely used as a  measure of profitability as it shows how much net operating profit a company is making per dollar of total assets. Sometimes a manager modifies the return on assets ratio  to determine a return on investment figure. This shows how a company is performing when both operating and financial figures are considered. This does not take into account  the way the assets are financed because the net operating profit is not affected by the amount of interest a company pays and the organizations use of debt is not 

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