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Hong Kong With Our Newest Acquisition Yammer

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In conclusion I recommend we expand to Hong Kong with our newest acquisition Yammer.
When we look at the financial health of the company and our current ratio is 2.50 meaning for every dollar the company owes it has $2.50 of assets, and the quick ratio is 2.44. These are huge and strong ratios and the main reason I know the company can expand its operations overseas with this new product. The tax situation is Hong Kong is very attractive to all types of companies. The rates here in the United States the company pays 27.1%, while in Hong Kong the tax rate is only 16%. This tax saving alone has the ability to increase profits. The company’s debt is very low as indicated by the debt ratio of
.48, so fir every .48 cents the company owns $1.00 worth of assets. The company currently generates
.13cents in profit for every one dollar in profit. These ratios will go up with less of a tax burden. If we take the 16% tax and apply it to gross profits we show a nice increase in net profit and all the financial ratios go up respectively. This potential addition profit will benefit current and future shareholders with elevated dividends and more retained earnings which we can use to finance other operations or expand the operation that I am proposing.
I feel we can expand this potential operation after only 2 years. I feel that time frame will allow us the opportunity to fine tune the Yammer product for the Pacific Rim, while still offering the existing product for transplants in this

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