Gitman: Principl Manageri Finance_15 (15th Edition) (What's New in Finance)
15th Edition
ISBN: 9780134476315
Author: Chad J. Zutter, Scott B. Smart
Publisher: PEARSON
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Textbook Question
Chapter 12.1, Problem 12.1RQ
Are most mutually exclusive capital budgeting projects equally risky? If you think about a firm as a portfolio of many different kinds of investments, how can the acceptance of a project change a firm’s overall risk?
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Anti-Pandemic Pharma Co. Ltd. reports the following information inits income statement:Sales = $5,250,000;Costs = $2, 173,000;Other expenses = $187,400;Depreciation expense = $79,000;Interest expense= $53,555;Taxes = $76,000;Dividends = $69,000.$136,700 worth of new shares were also issued during the year andlong-term debt worth $65,300 was redeemed.a) Compute the cash flow from assetsb) Compute the net change in working capital
Question 3
Footfall Manufacturing Ltd. reports the following financial
information at the end of the current year:
Net Sales
$100,000
Debtor's turnover ratio (based on 2
net sales)
Inventory turnover ratio
1.25
Fixed assets turnover ratio
0.8
Debt to assets ratio
0.6
Net profit margin
5%
Gross profit margin
25%
Return on investment
2%
Use the given information to fill out the templates for income
statement and balance sheet given below:
Income Statement of Footfall Manufacturing Ltd. for the year ending
December 31, 20XX
(in $)
Sales
100,000
Cost of goods
sold
Gross profit
Other expenses
Earnings
before
tax
Tax @50%
Earnings
after
tax
Balance Sheet of Footfall Manufacturing Ltd. as at December 31, 20XX
(in $)
Liabilities
Amount
Assets
Amount
Equity
Net fixed assets
Long term 50,000
Inventory
debt
Short term
debt
Debtors
Cash
TOTAL
TOTAL
Chapter 12 Solutions
Gitman: Principl Manageri Finance_15 (15th Edition) (What's New in Finance)
Ch. 12.1 - Are most mutually exclusive capital budgeting...Ch. 12.2 - Prob. 12.2RQCh. 12.2 - Describe how each of the following behavioral...Ch. 12.3 - Briefly explain how the following items affect the...Ch. 12.4 - Describe the basic procedures involved in using...Ch. 12.4 - Explain why a firm whose stock is actively traded...Ch. 12.4 - Prob. 12.8RQCh. 12.5 - Explain why a mere comparison of the NPVs of...Ch. 12.5 - What are real options? What are some major types...Ch. 12.5 - What is the difference between the strategic NPV...
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