Measuring Investment Returns for Fontana Jamaica Limited 2022 1. Is there a typical project...

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Finance

Measuring Investment Returns for Fontana Jamaica Limited 2022

1. Is there a typical project for this firm? If yes, what does it look like in terms of life (long term or short term), investment needs and cash flow patterns?

2. How good are the projects that the company has on its books currently?

3. Are the projects in the future likely to look like the projects in the past?

4.Why or why not?

VI. Optimal Capital Structure for Fontana Pharmacy Jamaica

1. Based upon the cost of capital approach, what is the optimal debt ratio for your firm?

2. Bringing in reasonable constraints into the decision process, what would your recommended debt ratio be for this firm?

3. Does your firm have too much or too little debt

o Relative to the sector?

o Relative to the market?

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