You are the new CFO of Risk Surfing Ltd, which has current assets of $7,920, net fixed assets of $17,700, current liabilities of S4,580, and long-term debts of $5,890. Required: a. What are the three important questions of corporate finance you will need to address? Please briefly explain them and indicate how they are related to the areas in the balance sheet of a company. ( b. Calculate the owners' equity and build a balance sheet for the company?, c. How much is the networking capital of the company? (* d. Calculate the return on assets of the company given that Return on Equity is 30%? e. What is the PE of the company total number of ordinary share outstanding of the companies is 2,000 and the market price of each share is $12?.
You are the new CFO of Risk Surfing Ltd, which has current assets of $7,920, net fixed assets of $17,700, current liabilities of S4,580, and long-term debts of $5,890. Required: a. What are the three important questions of corporate finance you will need to address? Please briefly explain them and indicate how they are related to the areas in the balance sheet of a company. ( b. Calculate the owners' equity and build a balance sheet for the company?, c. How much is the networking capital of the company? (* d. Calculate the return on assets of the company given that Return on Equity is 30%? e. What is the PE of the company total number of ordinary share outstanding of the companies is 2,000 and the market price of each share is $12?.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:You are the new CFO of Risk Surfing Ltd, which has current assets of $7,920, net fixed assets of $17,700, current liabilities of S4,580, and long-term debts of
$5,890.
Required:
a. What are the three important questions of corporate finance you will need to address? Please briefly explain them and indicate how they are related to
the areas in the balance sheet of a company. (
b. Calculate the owners' equity and build a balance sheet for the company?,
c. How much is the networking capital of the company? (*
d. Calculate the return on assets of the company given that Return on Equity is 30%?
e. What is the PE of the company total number of ordinary share outstanding of the companies is 2,000 and the market price of each share is $12?.
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