Kylie Cosmetics

Kylie Cosmetic
Student’s Name
Institutional Affiliation
KYLIE COSMETICS
Answers
The current ratio for Fortune company as of March 2018 was 555.93
The current ratio for the company is more than one (555.93) which implies that the company can pay off its short-term liabilities and remain with other cash.
The earnings per share for the Fortune company as of March 2018 was -0.24.
The return on equity for Fortune company as of March 2018 was 0.86
The return on investment for Fortune company as of March 2018 was 0.67
– Approximate the required amount of capital to allow the business to function properly
-Devise a capital structure for the business
– Look for sources where the company will raise funds
-Managing a company’s available funds to prevent shortage or surplus for daily expenses
A company that raises capital by selling extra share dilutes the holdings of the current shareholders. Superficially, this action would cause the price of shares to reduce. Nevertheless, stock prices are affected by the expectations of investors implying that issuing new share may increase of reducing the price of shares. For the case, the company would have issue more shares of stock to offset the imbalance.
The best strategy is to diversify the portfolio to shield investment from a stock market that is going down. Stocks, annuities, real estate, cash, precious metals, and derivatives are alternative portfolios that will ensure the investor earns some profit when the market c…