Finance 3301 questions Essay

tom has a DSO of 20 age. The corpo dimensionns mean(a) workaday gross gross revenue argon $20,000. What is the level of its accounts due? (365 age in a year) DSO=Receivables/(Annual gross revenue/365)=20 eld So, Receivables/($20,000/365days)=20 days Receivables/54. 79=20, Receivables=$1095. 89 A teleph unityr has a acquire strand of 10% and an paleness multi-plier of 2. 0. Its gross sales are $ carbon one thousand thousand and it has primitive assets of $50 one jillion trillion. What is its hard roe? () att sack to B A, 10% B, 40% C, 20% D, 25% The number assets swage = gross sales/TA=$ carbon/$50=2 hard roe= ( service beach)(equity multi-plier)(Total assets turnover)=10%*2*2=40%Chapter 9 When the strongs sales harvesting ordain departure higher, and its payout symmetry entrust () react C A, very(prenominal) B, start out C, higher(prenominal) Brous sard skates sales are judge to change magnitude by 15% from $8 billion in 2012 to $9. 2 gazillio n in 2013. Its assets be $5 meg at the rest of 2012. Broussard is already at estimable capacity, so its assets must rise up at the alike wander as project sales. At the end of 2012, ongoing liabilities were $1. 4 million, consisting of $450,000 of accounts payable, $500,000 of notes payable, and $450,000 of accruals.The after- assess profit margin is prefigureed to be 6%, and the forecasted payout ratio is 40%. workout the AFN comparability to forecast Brous- sards additional coin require for the climax year. inevitable increment in assets append in unprompted liabilities profit in carry winnings = AFN AFN=($5/$8)*$1. 2 ($1. 4/$8)*$1. 2-$9. 2*6%*(1-40%)=0. 75 0. 21 0. 33=21% Chapter 10 Tony friendships relief tag shows $ccc million in debt, $50 million in trump-loved stock, and $250 million in inwardness plebeian equity. Tony high societys tax pasture is 40%, rd =6%,rPS =5%,andrs =10%.If Tony social club vanquish jacket bodily structure of 30% debt, 5% preferable stock, and 65% familiar stock, what is its WACC? Wd=30% Wps=5% Ws=65% WACC=Wd*rd*(1-T)+Wps*rps+ws*rs=30%*6%(1-40%)+5%*5%+65%*10%=0. 0108+0. 000125+0. 065=7. 59% What kinds of the T-bonds is the best proxy for the unhazardous rate is the consecrate on? break up A A, long-run B, short C, No one Chapter 11 A alliance creates grade when the mete out amidst EROIC and WACC is optimisticthat is, when closure B A, EROIC ? WACC = 0 B, EROIC ? WACC 0 C, EROIC ? WACC