Fundamentals Of Corporate Finance, 9th Edition
9th Edition
ISBN: 9781260052220
Author: Richard Brealey; Stewart Myers; Alan Marcus
Publisher: McGraw-Hill Education
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Chapter 3, Problem 31QP
Summary Introduction
To determine: Shareholders’ equity
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The table below contains data on Fincorp Incorporated. The balance sheet items correspond to values at year-end 2021 and 2022,
while the income statement items correspond to revenues or expenses during the year ended 2021 and 2022. All values are in
thousands of dollars.
Revenue
Cost of goods sold
Depreciation
Inventories
Administrative expenses
Interest expense
Federal and state taxes*
Accounts payable
Accounts receivable.
Net fixed assets*
Long-term debt
Notes payable
Dividends paid
Cash and marketable securities
2021
$ 4,100
1,700
470
270
520
240
340
320
350
4,800
2,400
687
380
760
Net working capital
2022
$ 4,200
1,800
490
335
570
240
360
355
395
* Taxes are paid in their entirety in the year that the tax obligation is incurred.
t
Net fixed assets are fixed assets net of accumulated depreciation since the asset was installed.
5,540
2,860
540
380
480
What was the change in net working capital during the year?
Note: Enter your answer in thousands of dollars.
by
The table below contains data on Fincorp Inc. The balance sheet items correspond to values at year-end 2018 and 2019, while
the income statement items correspond to revenues or expenses during the year ending in either 2018 or 2019. All values are
in thousands of dollars.
2018
2019
$5,600
1,800
420
$5,700
1,900
440
285
Revenue
Cont of gooda sold
Depreciation
Inventories
250
410
460
220
Administrative expenses
Intereat expense
Federal and state taxen
Accounta payable
Accounts receivable
220
790
810
325
280
450
525
Net fixed aBseta
Long-term debt
Notes payable
Dividends paid
Cash and marketable securities
5,530
2,410
740
4,900
2, 00০
1,010
320
800
320
390
* Taxes are paid in their entirety in the year that the tax obligation is incurred,
T Net fixed assets are fixed assets net of accumulated depreciation since the asset was installed.
Suppose that Fincorp has 445,000 shares outstanding. What were earnings per share? (Round your answers to 2 decimal
places.)
2018
2019
Eamings per share.
The table below contains data on Fincorp Incorporated. The balance sheet items correspond to values at year-end 2021 and 2022,
while the income statement items correspond to revenues or expenses during the year ending in either 2021 or 2022. All values are in
thousands of dollars.
*
Revenue
Cost of goods sold
Depreciation
Inventories
Administrative expenses
Interest expense
Federal and state taxes*
Accounts payable
Accounts receivable
Net fixed assets
Long-term debt
Notes payable
Dividends paid
Cash and marketable securities
2021
$ 4,000
1,900
440
290
400
110
350
330
380
5,500
2,900
821
440
850
Price
2022
$ 4,100
2,000
460
340
450
110
370
405
440
Taxes are paid in their entirety in the year that the tax obligation is incurred.
per share
6,340
3,330
520
440
460
t
Net fixed assets are fixed assets net of accumulated depreciation since the asset was installed.
Suppose that the market value (in thousands of dollars) of Fincorp's fixed assets in 2022 is $6,570 and that the value of its…
Chapter 3 Solutions
Fundamentals Of Corporate Finance, 9th Edition
Ch. 3 - Prob. 1QPCh. 3 - Prob. 2QPCh. 3 - Balance Sheet. Construct a balance sheet for...Ch. 3 - Income Statement. A firm’s income statement...Ch. 3 - Prob. 5QPCh. 3 - Financial Statements. South Sea Baubles has the...Ch. 3 - Prob. 8QPCh. 3 - Prob. 9QPCh. 3 - Prob. 10QPCh. 3 - Prob. 11QP
Ch. 3 - Prob. 12QPCh. 3 - Prob. 13QPCh. 3 - Prob. 14QPCh. 3 - Working Capital. QuickGrow is in an expanding...Ch. 3 - Prob. 16QPCh. 3 - Prob. 17QPCh. 3 - Prob. 18QPCh. 3 - Prob. 19QPCh. 3 - Prob. 20QPCh. 3 - Free Cash Flow. Free cash flow measures the cash...Ch. 3 - Prob. 24QPCh. 3 - Prob. 25QPCh. 3 - Prob. 26QPCh. 3 - Prob. 27QPCh. 3 - Prob. 28QPCh. 3 - Prob. 29QPCh. 3 - Prob. 31QPCh. 3 - Prob. 32QPCh. 3 - Prob. 33QPCh. 3 - Prob. 34QPCh. 3 - Prob. 35QPCh. 3 - Prob. 36QPCh. 3 - Prob. 37QPCh. 3 - Prob. 38QP
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