Payables Drawings Delivery vehicles Land and Buildings Capital Receivables 65000 15000 100000 350000 316750 62750 25000 12000 250000 75000 35500 27500 Cash float Petty cash Mortgage Bond Furniture and fittings Bank overdraft Trading Stock/Inventory QUESTION 7: Calculate Current Assets for ABC Limited
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- Is this a right valuation? Valuation Calculations EV/EBITDA Multiple Capitalization $ 188.3 billion - Cash and Investment $ 5.018 billion + Market Debt Value $ 16.27 billion = Market Value of Equity $ 199.552 billion / Outstanding Shares 0.44 billion = EV/EBITDA $ 453.534. Determining the optimal capital structure Understanding the optimal capital structure Review this situation: Transworld Consortium Corp. is trying to identify its optimal capital structure. Transworld Consortium Corp. has gathered the following financial information to help with the analysis. Debt Ratio Equity Ratio EPS DPS Stock Price 30% 70% 1.25 0.55 36.25 40% 60% 1.40 0.60 37.75 50% 50% 1.60 0.65 39.50 60% 40% 1.85 0.75 38.75 70% 30% 1.75 0.70 38.25 Which capital structure shown in the preceding table is Transworld Consortium Corp.’s optimal capital structure? Debt ratio = 30%; equity ratio = 70% Debt ratio = 40%; equity ratio = 60% Debt ratio = 50%; equity ratio = 50% Debt ratio = 60%; equity ratio = 40% Debt ratio = 70%; equity ratio = 30%estld-253754269¢erwin-yes O 710389- TR 1000 ed Question 3 of 25 The fair value of an investment is the price that Q Search OA. existed at the time of acquisition B. would be received if the company were to sell the investment on the market OC. is not relevant for trading debt investments O D. is always equal to the weighted average cost of the investment L ... hp T T W
- Please answer in CAPITAL LETTER IF IT IS AN INFLOW(I )OR AN OUTFLOW (O)COLUMN 1 , AND COLUMN 2 , IF IT CORRESPONDS TO OPERATINGCASHFLOW(OC),INVESTMENT ACTIVITY CASHFLOW(IC), FINANCING ACTIVITY CASHFLOW ( FC)Example: Reduce marketable securities : I OC ( "I" or "O") AND ("OC", "IC" o "FC" )Activity INFLOW " I" orOutflow "O" OPERATINGCASHFLOW(OC), INVESTMENTACTIVITY CASHFLOW(IC), FINANCINGACTIVITY CASHFLOW ( FC) 1. Purchase of treasurystock2. Purchase of availablefor sale investment 3. Sale of equipment at aloss 4. Increase in accountspayable 5. Retirement of bonds 6. Issuance of bonds 7. Decrease in accountspayable 8. Increase in inventory9. Loan from bank bysigning a note 10. Increase in accountsreceivable 11. Purchase of equipmentby issuing a note 12. Purchase of land andbuilding. 13. Decrease in accountsreceivable.14. Payment of dividends. 15.…Review this situation: Transworld Consortium Corp. is trying to identify its optimal capital structure. Transworld Consortium Corp. has gathered the following financial information to help with the analysis. Debt Ratio Equity Ratio rdrd rsrs WACC 30% 70% 7.00% 10.50% 8.61% 40% 60% 7.20% 10.80% 8.21% 50% 50% 7.70% 11.40% 8.01% 60% 40% 8.90% 12.20% 8.08% 70% 30% 10.30% 13.50% 8.38% Which capital structure shown in the preceding table is Transworld Consortium Corp.’s optimal capital structure? Debt ratio = 70%; equity ratio = 30% Debt ratio = 60%; equity ratio = 40% Debt ratio = 40%; equity ratio = 60% Debt ratio = 30%; equity ratio = 70% Debt ratio = 50%; equity ratio = 50% Consider this case: Globo-Chem Co. has a capital structure that consists of 30% debt and 70% equity. The firm’s current beta is 1.25, but management wants to understand Globo-Chem Co.’s market risk without the effect of leverage. If…Q48 Capital Structure refers to the following, except a. relationship between the various long-term sources of financing b. proper mix of debt and equity that helps to maximize the cost of capital c. helps the company perform better and return more to shareholders d. permanent financing of the company represented by long-term debt and equity
- nEED IN 10 MINUTES 9. On January 1, 20x1, an entity purchased marketable equity securities for P2,500,000. The entity paid commission and taxes of P190,000. The equity securities do not qualify as financial asset held for trading. The entity made irrevocable election to present unrealized gain and loss in other comprehensive income. The securities have a market value of P2,600,000, and P2,750,000 on December 31, 20x1 and December 31, 20x2. On July 1, 2022, half of the securities are sold for P1,400,000. On July 1, 2022, the net increase/ decrease in retained earnings account is (sample answer: 10,500 increase or 10,500 decrease)Weighted Average Cost of CapitalAustin, Inc. plans to finance its expansion by raising the needed investment capital from the following sources in the indicated proportions and respective capital cost rates. Capital Cost Source Proportion Rate Bonds 45% 11% Preferred stock 10% 9% Common stock 25% 15% Retained earnings 20% 13% 100% Calculate the weighted average cost of capital.Round answers to one decimal place. For example, 0.457 = 45.7%. Weighted Average Cost of Capital Bonds Answer Preferred stock Answer Common stock Answer Retained earnings Answer Answerp6 According to M&M Proposition 2, the cost of a firm’s common stock is directly related to the rating of its common stock in the market. the number of shares outstanding. its asset turnover ratio. its debt-equity ratio.
- Ma4. A company prepares its financial statements according to IFRS its financial statements include ordinary share capital and share premium the company used US gaap what would be likely account titles for these accounts, respectively •Common stock, par value, additional paid-in capital, Share purchase •Common stock additional paid-in capital •Preferred stock additional paid-in capital preferred stock •Common stock, par value, additional paid-in capital stock options 2) what is the term for actuaria gains and losses and how are they accounted for in the IFRS •Actuarial gains and losses accounted for as an OCI item •Remeasurement gains and losses accounted for as an OCI item •Remeasurement gains and losses accounted for as a profit or loss •Actuarial gains and losses accounted for as a profit or lossStart with the partial model in the file Ch08 P25 Build a Model.xlsx. Selected data for the Derby Corporation are shown here. Use the data to answer the questions. INPUTS (In Millions) Year Current Projected 0 1 2 3 4 Free cash flow -$15.0 $15.0 $60.0 $63.0 Marketable securities $30 Notes payable $100 Long-term bonds $300 Preferred stock $50 WACC 9.00% Number of shares of stock 50% Calculate the estimated horizon value (i.e., the value of operations at the end of the forecast period immediately after the Year-4 free cash flow). Assume growth becomes constant after Year 3. Enter your answer in millions. For example, an answer of $1.23 million should be entered as 1.23, not 1,230,000. Round your answer to two decimal places. $ fill in the blank 2 million Calculate the present value of the horizon value, the present value of the free cash flows, and the estimated Year-0 value of operations. Enter…Weighted Average Cost of CapitalRust, Inc. plans to finance its expansion by raising the needed investment capital from the following sources in the indicated proportions and respective capital cost rates. Capital Cost Source Proportion Rate Bonds 45% 11% Preferred stock 10% 9% Common stock 25% 15% Retained earnings 20% 13% 100% Calculate the weighted average cost of capital.Round answers to one decimal place. For example, 0.457 = 45.7%. Weighted Average Cost of Capital Bonds Answer Preferred stock Answer Common stock Answer Retained earnings Answer Answer