Problem 15.01 – Parramore Corp
Fundamentals of Financial Management, Concise
Brigham and Houston
09th Edition and 10th Edition
Determine the amount by which cash would be freed up, and how would that affect pretax profits?
Determine the amount by which cash would be freed up, and how would that affect pretax profits?
Given the stock split… determine the stock price.
Determine the DSO and how much capital would be released.
Given the stock repurchase… determine the stock price.
How much additional credit could Lancaster Lumber obtain, and what would be the nominal and effective cost of that credit?
Given the stock split… find last year’s dividend per share.
Determine the cash conversion cycle, the investment in accounts receivable, and inventory turnover.
Given production capacity expansion, investment, debt, and net income dividend… find how much external equity needs to expand capacity as desired.
Calculate the days sales outstanding, the average receivables, and the percentage cost of trade credit.
Determine Pasha’s cash conversion cycle, the reduction in working capital, and rework the cash conversion cycle given that its working capital financing requirement if the new production process is implemented.