1 5 2 5000 28000 285000 12000 90000 24000 195000 41000 28000 80000 60000 120000 80000 55000 81000 8000 161000 161000 6400 12180 50000 26580 1.18 5 5 3 5 5 4 10 0.06 500 20000 5000 0.08 0 1000 47000 20 1000 100000 46800 12 0.06 80000 24000 10 0.09 100 5 1000 12 0.1 5 6 32 2.5 1.18 5 5 7 0 -125000 0 -300000 1 58000 1 150000 2 75000 2 160000 3 67000 3 120000 4 50000 4 95000 5 5 8 245000 326000 0.08 0.18 0.

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1 5 2 5000 28000 285000 12000 90000 24000 195000 41000 28000 80000 60000 120000 80000 55000 81000 8000 161000 161000 6400 12180 50000 26580 1.18 5 5 3 5 5 4 10 0.06 500 20000 5000 0.08 0 1000 47000 20 1000 100000 46800 12 0.06 80000 24000 10 0.09 100 5 1000 12 0.1 5 6 32 2.5 1.18 5 5 7 0 -125000 0 -300000 1 58000 1 150000 2 75000 2 160000 3 67000 3 120000 4 50000 4 95000 5 5 8 245000 326000 0.08 0.18 0.33 10 9 5 10 2012 2011 42000 44000 43000 35000 34000 34500 26000 30000 28000 500000 350000 1 1 1 1 1 1 10 10 Cash Accounts Receivable Inventory Total Current Assets Plant & Property Total Assets Accounts Payable Long term debt Equity Sales Cost of sales Gross Profit Salaries & Benefits Operating Expenses EBIDT Depreciation Interest Taxes NIAT Assets Liabilities & Equity Income Statement Calculate: Working Capital Debt to equity Ratio Referring to the Balance Sheet and Income Statement in Question 2. Shares outstanding Beta PV You are considering purchasing the bond described below: Face Value YTM Coupon Rate Coupon Payments Semi-annually You are looking for an annual reutrn of 14%. Today’s price Dividends Paid quarterly Year Investment/Income Your company is trying to decide between the following investments. It’s required return is 18% Debt A Company has the following debt/equity structure: Cost of Debt Cost of Equity Tax Rate Calculate the firms WACC (Weighted Average Cost of Capital) Name DO NOT COPY FROM OR PARAPHASE YOUR TEXTBOOK. ANSWER “IN YOUR OWN WORDS” AND GIVE AN EXAMPLE(S) WHENEVER APPROPIATE per quarter Years Risk Free return is 6% and your market risk premium is 10% NPV IRR Discuss the advantages and disadvantages of corporate debt. here is some information about ABC company Average Net Sales Cost of Goods Sold Calculate the company’s operating and cash cyles (show your work) A/R turnover A/P turnover A/R…

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