You are the new CFO of Risk SurfingLtd, whichhas current assets of $7,920, net fixed assets of $17,700, current liabilities of $4,580 and long-termdebts of $5,890. Required:a.What are the three important questions of corporate financeyou will need to address? Please briefly explain them and indicate how they are related to the areas in the balance sheet of a company.b.Calculate owners’ equity and build a balance sheet for the company? c.How much is net working capital of the company? d.Calculatethe return on assets of the company giventhat Return on Equity is 30%?e.What is the PE of the company total number of ordinary share outstanding of the companies is 2,000 and market price of each share is $12?
You are the new CFO of Risk SurfingLtd, whichhas current assets of $7,920, net fixed assets of $17,700, current liabilities of $4,580 and long-termdebts of $5,890. Required:a.What are the three important questions of corporate financeyou will need to address? Please briefly explain them and indicate how they are related to the areas in the balance sheet of a company.b.Calculate owners’ equity and build a balance sheet for the company? c.How much is net working capital of the company? d.Calculatethe return on assets of the company giventhat Return on Equity is 30%?e.What is the PE of the company total number of ordinary share outstanding of the companies is 2,000 and market price of each share is $12?
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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You are the new CFO of Risk SurfingLtd, whichhas current assets of $7,920, net fixed assets of $17,700, current liabilities of $4,580 and long-termdebts of $5,890. Required:a.What are the three important questions of corporate financeyou will need to address? Please briefly explain them and indicate how they are related to the areas in the
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