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WorksheetsCorporate Finance
Total questions: 20
Worksheet time: 20mins
Techniques Financial Statement Analysis besides ratio analysis and trend analysis is
Horizontal analysis
Common size analysis
Analysis Ratio
Trend analysis
Natasha Inc has $ 800,000 in assets and $ 200,000 in debt. It reports net income $ 100,000. What is the ROA,ROE and the profit margin if total asset turnover 2.75 times
10,50%;12,50%;2,55%
15,50%;16,50%;5,55%
12,50%;16,67%;4,55%
12,50%;16,60%;4,50%
Working capital management consist of cash management, receivable management, short term financing decision and
Fixed asset management
Total asset management
Inventory management
Equity management
Market Ratio shows the company’s value and represent market value expectation to company, below is market ratio
Price to Book Value Ratio, ROA, ROE
EPS, ROA, ROE
EPS, Market to Book Value, P/E Ratio
Net Profit Margin, ROA, ROE
Process valuing money today to future
Discounting
Compounding
Annuity valuing
Installment
Performance financial statement usually use to calcuate valuation of corporation which is used as basis valuation
Cash Flow
Income Statement
Notes to Financial Statement Analysis
Financial Position Statement
Discounting formula
FV = PV (1+i)n
PV = FV / (1+i)n
EAR = (i/m.n)-1
FVa={1-(1/(1+i)n)}/i
Method of capital budgeting, except:
NPV (Net Present Value)
IRR (Internal Rate of Return)
MIRR (Modified Internal Rate of Return)
Index Number
Capital budgeting is
capital expenditure budget and decision making
working capital management
current assets expenditure
equity management
Combination of payback period and net present value in capital budgeting method is
NPV (Net Present Value)
Discounted Payback Period
MIRR (Modified Internal Rate of Return)
Profitability Index
Capital Budgeting method to find most reasonable required rate return above cost of capital
NPV (Net Present Value)
IRR (Interest Rate of Return)
MIRR (Modified Interest Rate of Return)
PI (Profitability Index)
Initial amount of project was $ 20,000 and net cash flow the project of year 1: $ 5,000; year 2: $ 6,000; year 3: $ 8,000; year 4: 10,000. The payback period for
4,00 years
3,80 years
3,10 years
3,00 years
Initial amount of project was $ 20,000 and net cash flow the project of year 1: $ 5,000; year 2: $ 6,000; year 3: $ 8,000; year 4: 10,000. The IRR
16%
15%
20%
23%
Initial amount of project was $ 20,000 and net cash flow the project of year 1: $ 5,000; year 2: $ 6,000; year 3: $ 8,000; year 4: 10,000. The MIRR
16%
15%
20%
23%
Below must be excluded in the cash flow statement
depreciation expense
cash receipt payment
cash disbursement payment
cash sales
Below are activities of capital expenditure, except:
the new machine
purchase merchandise more because high seasons
open new branch
launch new product / division
kd=cost of debt and ki the real cost of debt after tax..
kd=ki
kd=ki (1-T)
ki=kd (1-T)
ki=kp (1-T)
kd=9%
T=10%
D1= $ 5
P0=$ 100
g=5%
ki?
3.60%
6.00%
5.40%
10.00%
kd=9%
T=10%
D1= $ 5
P0=$ 100
g=5%
ks?
5.40%
3.60%
10%
6%
debt $ 10,000; common stock $ 50,000 and cost of debt 9% and T=40%. Cost of common stock 10%.
Calculate the WACC!
!5%
16%
17%
18%
