EBK CORPORATE FINANCE
4th Edition
ISBN: 8220103164535
Author: DeMarzo
Publisher: PEARSON
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Textbook Question
Chapter 2, Problem 33P
See Table 2.5 showing financial statement data and stock price data for Mydeco Corp.
- a. By how much did Mydeco increase its debt from 2012 to 2016?
- b. What was Mydeco’s EBITDA/Interest coverage ratio in 2012 and 2016? Did its coverage ratio ever fall below 2?
- c. Overall, did Mydeco’s ability to meet its interest payments improve or decline over this period?
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Balance Sheet:
Assets
Current Assets
3/31/2019
12/31/2018
9/30/2018
6/30/2018
Cash and cash equivalents
Net receivables
Inventory
293
300
255
232
401
362
385
460
374
342
437
306
Other current assets
60
43
53
45
Total Current Assets
1,128
1,047
1,130
1,043
Long-term investments
128
97
200
Property, plant, and equipment
979
991
995
1,052
Goodwill
744
748
736
742
Other assets
777
831
902
797
Total Assets
3,756
3,714
3,763
3,834
Liabilities
Current Liabilities
Accounts payable
876
1,467
922
980
Short/current long-term debt
410
2
173
288
Other current liabilities
Total Current Liabilities
1,286
1,469
1,095
1,268
Long-term debt
2,381
2,124
474
475
Other liabilities
435
574
559
551
Total Liabilities
4,102
4,167
2,128
2,294
Total Shareholder's Equity
- 346
- 453
1,635
1,540
Total Liabilities and Shareholder's Equity
3,756
3,714
3,763
3,834
Please correct answer and don't use hand rating
Chapter 2 Solutions
EBK CORPORATE FINANCE
Ch. 2.1 - Prob. 1CCCh. 2.1 - Prob. 2CCCh. 2.2 - Prob. 1CCCh. 2.2 - Prob. 2CCCh. 2.2 - Prob. 3CCCh. 2.3 - What it is the difference between a firms gross...Ch. 2.3 - What is the diluted earnings per share?Ch. 2.4 - Prob. 1CCCh. 2.4 - Prob. 2CCCh. 2.5 - Prob. 1CC
Ch. 2.5 - Prob. 2CCCh. 2.6 - Why is EBITDA used to assess a firms ability to...Ch. 2.6 - Prob. 2CCCh. 2.6 - Prob. 3CCCh. 2.6 - Prob. 4CCCh. 2.7 - Describe the transactions Enron used to increase...Ch. 2.7 - Prob. 2CCCh. 2 - Prob. 1PCh. 2 - Prob. 2PCh. 2 - Consider the following potential events that might...Ch. 2 - What was the change m Global Conglomerates book...Ch. 2 - Find online the annual 10-K report for Costco...Ch. 2 - In early 2012, General Electric (GE) had a book...Ch. 2 - In early-2015, Abercrombie Fitch (ANF) had a book...Ch. 2 - Prob. 10PCh. 2 - Suppose that in 2016, Global launches an...Ch. 2 - Find online the annual 10-K report for Costco...Ch. 2 - Prob. 13PCh. 2 - Prob. 14PCh. 2 - See Table 2.5 showing financial statement data and...Ch. 2 - See Table 2.5 showing financial statement data and...Ch. 2 - Suppose a firms tax rate is 35%. a. What effect...Ch. 2 - Prob. 18PCh. 2 - Prob. 19PCh. 2 - See Table 2.5 showing financial statement data and...Ch. 2 - See Table 2.5 showing financial statement data and...Ch. 2 - Prob. 22PCh. 2 - Can a firm with positive net income run out of...Ch. 2 - Suppose your firm receives a 5 million order on...Ch. 2 - Nokela Industries purchases a 40 million...Ch. 2 - See Table 2.5 showing financial statement data and...Ch. 2 - Find online the annual 10-K report for Costco...Ch. 2 - Prob. 28PCh. 2 - For fiscal year end 2015, Wal-Mart Stores, Inc....Ch. 2 - Prob. 30PCh. 2 - See Table 2.5 showing financial statement data and...Ch. 2 - See Table 2.5 showing financial statement data and...Ch. 2 - See Table 2.5 showing financial statement data and...Ch. 2 - See Table 2.5 showing financial statement data and...Ch. 2 - Use the data in Problem 8 to determine the change,...Ch. 2 - You are analyzing the leverage of two firms and...Ch. 2 - Prob. 37PCh. 2 - Prob. 38PCh. 2 - Prob. 39PCh. 2 - Prob. 40PCh. 2 - Prob. 41PCh. 2 - Prob. 42PCh. 2 - Consider a retailing firm with a net profit margin...Ch. 2 - Prob. 44PCh. 2 - Prob. 45P
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