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Mid Term Kì Hè

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37 views8 pages

Mid Term Kì Hè

Uploaded by

22070578
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as XLSX, PDF, TXT or read online on Scribd
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1. Building a Balance Sheet: KCCO, Inc.

, has current assets of


$5,300, net BASIC fixed assets of $24,900, current liabilities of
$4,600, and long-term debt of $10,300. What is the value of the
shareholders’ equity account for this firm? How much is net
working capital?

2. Building an Income Statement: Billy’s Exterminators, Inc., has


sales of 52 $817,000, costs of $343,000, depreciation expense of
$51,000, interest expense of $38,000, and a tax rate of 35 percent.
What is the net income for this firm?

3. Calculating Additions to NWC: The 2014 balance sheet of Steelo,


Inc., showed current assets of $4,630 and current liabilities of
$2,190. The 2015 balance sheet showed current assets of $5,180
and current liabilities of $2,830. What was the company’s 2015
change in net working capital, or NWC?

4. Cash Flow to Creditors: The 2014 balance sheet of Sugarpova’s


Tennis Shop, Inc., showed long-term debt of $1.95 million, and the
2015 balance sheet showed long-term debt of $2.28 million. The
2015 income statement showed an interest expense of $235,000.
What was the firm’s cash flow to creditors during 2015?
5. Cash Flow to Stockholders: The 2014 balance sheet of
Sugarpova’s Tennis Shop, Inc., showed $670,000 in the common
stock account and $4.1 million in the additional paid-in surplus
account. The 2015 balance sheet showed $825,000 and $4.4 million
in the same two accounts, respectively. If the company paid out
$565,000 in cash dividends during 2015, what was the cash flow to
stockholders for the year?

1. LAF company has retained profit for reinvestment for the last
year of VND 350 million. The company has paid dividends of VND
210 million and has total equity at the end of the year amounting to
VND 9,000 million. Previously, LAF company issued 185,000
ordinary shares and currently has 35,000 treasury shares. If now,
ordinary share is sold for VND 110,000/share then what are the ratio
of market value over book value (MB) and price to earnings ratio
(PE).

2. Hoang Long joint stock company issued fixed rate bonds bearing
interest at 11% pa. The bonds have a par value of VND 1,000,000
and will mature after 9 years. Interest are payable annually. If the
yield to maturity (YTM) of the bonds is 10%, what is the present
value of the bond?
3. Nam Trieu joint stock company has just paid dividend of VND
1,900/share. Expected dividend growth rate is 8% pa in the next 4
years and subsequently 7% pa to infinity. If the investors require a
rate of return of 14% pa from the share of Nam Trieu joint stock
company then what is the current price of the share?

4. Mr. A borrows VND 150 million from a bank at an interest rate


of 12% pa. The loan and interest rate are repayable in four equal
installments starting in 1 year after from the borrowing date. What
is the amount that Mr. A has to pay annually?

5. Company X currently has debt capital of VND 300 million


bearing an interest rate of 12% pa and 35,000 ordinary share in
issue. The company does not have to preference share. The
company is subject to income tax at 20%. At an EBIT of VND 850
million, what is EPS of the company?
Current assets 5300 Current liabilities
Net fixed assets 24900 Long term debt
Equity
Total assets 30200 Total liabilities and
shareholder's equity

NWC = CA - CL 700

Income statement
Sales 817000
Less: costs 343000
Less: depreciation expense 51000
EBIT 423000
Interest expense 38000
Tax expense 148050
Net income 236950

2014 2015
Current assets 4630 Current assets
Current liabilities 2190 Current liabilities
NWC = CA - CL 2440 NWC = CA - CL

Change in NWC = -90

Net new borrowing = 0.33 million


CFC = Interest paid - net new borrowing
-94999.9999999998
Net new equity raised =
455000
CFS = Dividends paid - net new equity raised
110000

FV = 1000000
Coupon rate = 11.00%
r= 10.00%
Total periods (n)= 9

C = coupon rate * FV 110000


Bond value= C( ( 1 - 1 / ( 1 + r ) ^ t ) / r ) + FV / (1+r)^t
1057590.23816275
D0 = $1,900.00
g1 = 8%
g2 = 7.00%
R= 14%
Price = D0*(1+g1)^1 / (1+r)^1 + D0*(1+g1)^2 / (1+r)^2 + D0*(1+g1)^3 / (1+r)^
Price = $30,045.83

PV = C * ( 1 - ( 1 / ( 1 + r ) ^ t ) ) / r
150000000 = C *( 1 - ( 1 / ( 1 + 12% ) ^ 4 ) ) / 12% years
C= $49,385,165.45

YTM = ( C + ( FV - PV ) / t ) / ( ( FV + PV ) / 2 ) * 100%
C = Annual coupon payment = Coupon rate * FV 103
FV = Face value of bond = 1000
PV = Present value of bond = 1020
t = Years to mature = 30
YTM = 0.1013201320132
4600
10300
15300
30200

5180
2830
2350
1+r)^2 + D0*(1+g1)^3 / (1+r)^3 + D0*(1+g1)^4 / (1+r)^4 + (D0*(1+g1)^5*(1+g2)) / ((1+r)^5*(r-g2))

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