Problem 2.01 – Building a Balance Sheet
Fundamentals of Corporate Finance
Ross, Westerfield, and Jordan
13th Edition
What is the shareholders’ equity and how much is net working capital?
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What is the shareholders’ equity and how much is net working capital?
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What is the net income, the addition to retained earnings, earnings per share, or EPS, and dividends per shares figures?
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What is the addition to retained earnings given sales, costs, depreciation expense, interest, and a tax rate as well as cash dividends paid?
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What is the earnings per share, or EPS, and what are the dividends per share? You are given sales, costs, depreciation, interest, a tax rate, and cash dividends paid out. In addition, they also provide you with the number of shares of common stock outstanding.
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Calculate income taxes, average tax rate, and the marginal tax rate.
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Given taxable income for a single individual, use the tax rates provided from table 2.3 to determine the taxes owed, average tax rate, and marginal tax rate.
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Determine the income taxes, average tax rate, and marginal tax rate.
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What was the company’s change in net working capital, or NWC?
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Determine the firm’s cash flow to creditors, cash flow to stockholders for the year, and operating cash flow, OCF.
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What is the book value of total assets and the sum of the market value of net working capital (NWC) and fixed assets for Klingon Widgets, Inc., given its purchase of cloaking machinery, current balance sheet, and potential liquidation value?
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