Problem 2.21 – Abercrombie and Fitch (ANF) & The Gap (GPS)
Fundamentals of Corporate Finance
Berk, DeMarzo, and Harford
05th Edition
Determine the market-to-book ratio of each company.
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Determine the market-to-book ratio of each company.
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Determine owner’s equity, net working capital, the amount of fixed assets sold by the company, cash flow from assets, and the amount of long-term debt that the company must have paid off during the year.
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Construct the cash flow identity for the company.
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Construct the cash flow identity for the company for Graffiti Advertising, Inc. given an income statement, and two years worth of balance sheets.
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Show that the expression given in the chapter for net capital spending is equivalent to FAend – FAbeg.
Construct the cash flow identity for the company.
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Show that the expression given in the chapter for net capital spending is equivalent to FAend – FAbeg.
Compare the gross margins and net profit margins for Walmart and Costco, and determine which firm was more profitable.
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Draw up an income statement and balance sheet for Taco Swell, Inc, and then determine the cash flow from assets, cash flow from creditors, and cash flow to stockholders.
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Given the sales, administrative expenses, research and development, annual depreciation charges, and tax rate… determine gross margin, operating margin, and net profit margin.
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