Dawson Lumber Company has requested the National Bank of Canada for a working capital loan of $10.8 million. The lumber company experienced rapid growth during the mid-90’s. This loan request is founded on the assumption that the increase of Dawson will continue at an increasing rate. The vice president of the bank must assess the functionality of Dawson and give an answer.
This instance is an excellent vehicle to reinforce or introduce fiscal evaluation. It synthesizes the relationship between financial statement development that is planned and ratio analysis. Additionally, it presents an interesting outlook in which the bank must balance risk with the effort it extended to get Dawson as a client.
Publication Date: 11/30/1999
This is just an excerpt. This case is about Finance
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