Intermediate Financial Management (MindTap Course List)
Intermediate Financial Management (MindTap Course List)
12th Edition
ISBN: 9781285850030
Author: Eugene F. Brigham, Phillip R. Daves
Publisher: Cengage Learning
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Chapter 21, Problem 9MC
Summary Introduction

Case summary:

Company H is a hardware chain, focused in “do it yourself” equipment rentals and materials. The one method to utilize excess fund is an acquisition. Company H’s boss and person Z decided to value the potential target of company L. For the purpose of this person Z conducted certain estimation regarding the company L.

To determine: Whether there is any reason to think about Company that might hold too much inventory if so, how it effects ROE and EVA.

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How much working capital does Airbnb have for the year 2024? State the components of working capital and calculations. What is the amount of the total assets that Airbnb reported for the year of 2024 and list the assets?
What is an account that requires present value calculations. State both the account name and the amount for the account you select.  What inventory method does Airbnb employ and explain how this method works? Calculate Airbnb inventory turnover for the  year 2024. What does inventory turnover tells an investor?
What was the free cash flow for the year 2024 for Airbnb and formula used for their calculations?  Explain the importance of free cash flow.

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Intermediate Financial Management (MindTap Course List)

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Inventory management; Author: The Finance Storyteller;https://www.youtube.com/watch?v=DZhHSR4_9B4;License: Standard Youtube License