Question 1 You are a newly employed finance manager for Finance Adventure Ltd. The following data is available for the company as of 31 June 2020: Current assets of $293,950 Current liabilities $68,700 Total assets $765,600 Equity $305,890 Required: a) The company’s Management Board required you to evaluate two alternative options of debt funding and equity funding for a new project. What is the job are you doing to complete the task? (referring to one out of 3 important questions of corporate finance for your answer) b) Calculate non-current assets, non-current liabilities and build a balance sheet for the company? c) Calculate the return on assets (ROA) of the company given that return on equity (ROE) is 35%?
Question 1
You are a newly employed finance manager for Finance Adventure Ltd. The following data is available for the company as of 31 June 2020:
Current assets of $293,950
Current liabilities $68,700
Total assets $765,600
Equity $305,890
Required:
a) The company’s Management Board required you to evaluate two alternative options of debt funding and equity funding for a new project. What is the job are you doing to complete the task? (referring to one out of 3 important questions of
b) Calculate non-current assets, non-current liabilities and build a balance sheet for the company?
c) Calculate the return on assets (ROA) of the company given that return on equity (ROE) is 35%?
d) What is the price earnings ratio (PE) of the company, given total number of outstanding ordinary shares is 57,000 and market price of each share is $22?
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