SUSTAINING OPERATIONAL PERFORMANCE
Order Description
You are a financial consultant and your company has been asked to help with the
following queries from a client who is considering investing in MDM plc, a medium
sized quoted company.
a) Which ratios should the client use if he wanted to assess the profitability of
the company? (Guide approx. 400 words) (20%)
b) Which ratios should the client use if he wanted to assess the riskiness of the
company? (Guide approx. 400 words) (20%)
c) Your client knows that MDM are considering a project which will cost €200
million. Advise the client on the different possible ways of financing this
project, clearly explaining the benefits or otherwise of each method.