AFM373 Lecture Notes - Lecture 6: Interest Expense, Accounts Receivable, Earnings Before Interest And Taxes

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM373
• Professor: Alan Douglas

Document Summary

Focus on ssd (fastest growing segment in memory industry) Design and manufacture of ssds and memory modules sold to original equipment manufacturers, distributors, retailers. Fast, uses less power, more resistant to failure, continues to store info even after device is turned off other high performance electronic parts sold through the same channels, for the same end products. Changes in tech = short life cycle of products. 100% max sales reached and maintained y2 & y3. Aggressive spending on r&d to improve existing products, add new ones. Reputation for high quality products maintained through r&d. 12. 20% investment in current assets (annual compound growth) Should invest in new ppe with debt because their sales show that they are likely to be able to pay back the debt. It"s also important to have good quality stuff to sell to their customers especially considering the competition in the market place. They may fall behind if they don"t make their investment.