Assets Cash S.T. Investments Accts Receivable Inventories Total Current Assets Net PP&E Total Assets Liabilities Accts Payable Notes Payable Accruals Balance Sheet Current Liabilities L.T. Bonds Preferred Stock Common Stock Retained Earnings Total Equity Total Liab. & Equity Less: Interest 2021 120 30 400 1,200 1,750 3,000 4,750 Pre-tax Earnings 100 100 300 500 520 200 530 3,000 3,530 4,750 Net Sales COGS except Dep Depreciation & Amortization Other Operating Expenses. EBIT Income Statements 2021 5,500 3,800 180 600 920 60 860 215 Taxes(25%) Preferred Dividends 15 Net Income for CS Holders 630 2020 $102 40 384 774 1,300 1,780 3,080 180 28 370 578 350 100 500 1,552 2,052 3,080 WACC Cost of Capital = 12.0% Return on Investment (ROI)= 15.97% Number of Common Stock Outstanding = 1,200 Price of Common Stock = 4.00 2020 4,800 3,710 180 470 440 40 400 100 7 293

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Assets
Cash
S.T. Investments
Accts Receivable
Inventories
Total Current Assets
Net PP&E
Total Assets
Liabilities.
Accts Payable
Notes Payable
Accruals
Balance Sheet
Current Liabilities
L.T. Bonds
Preferred Stock
Common Stock
Retained Earnings
Total Equity
Total Liab. & Equity
Less: Interest
2021
120
30
400
Pre-tax Earnings
1,200
1,750
3,000
4,750
100
100
300
500
520
200
530
3,000
3,530
4,750
Net Sales
COGS except Dep
Depreciation & Amortization
Other Operating Expenses
EBIT
Income Statements
2021
5,500
3,800
180
600
920
60
860
215
Taxes (25%)
Preferred Dividends
15
Net Income for CS Holders 630
2020
$102
40
384
774
1. What is the company's MVA?
2. What is the company's EVA in?
3. What is the current ratio of the Company?
1,300
1,780
3,080
180
28
370
578
350
100
500
1,552
2,052
3,080
Number of Common Stock Outstanding = 1,200
Price of Common Stock = 4.00
WACC Cost of Capital = 12.0%
Return on Investment (ROI)= 15.97%
2020
4,800
3,710
180
470
440
40
400
100
7
293
Transcribed Image Text:Assets Cash S.T. Investments Accts Receivable Inventories Total Current Assets Net PP&E Total Assets Liabilities. Accts Payable Notes Payable Accruals Balance Sheet Current Liabilities L.T. Bonds Preferred Stock Common Stock Retained Earnings Total Equity Total Liab. & Equity Less: Interest 2021 120 30 400 Pre-tax Earnings 1,200 1,750 3,000 4,750 100 100 300 500 520 200 530 3,000 3,530 4,750 Net Sales COGS except Dep Depreciation & Amortization Other Operating Expenses EBIT Income Statements 2021 5,500 3,800 180 600 920 60 860 215 Taxes (25%) Preferred Dividends 15 Net Income for CS Holders 630 2020 $102 40 384 774 1. What is the company's MVA? 2. What is the company's EVA in? 3. What is the current ratio of the Company? 1,300 1,780 3,080 180 28 370 578 350 100 500 1,552 2,052 3,080 Number of Common Stock Outstanding = 1,200 Price of Common Stock = 4.00 WACC Cost of Capital = 12.0% Return on Investment (ROI)= 15.97% 2020 4,800 3,710 180 470 440 40 400 100 7 293
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