FINA1221 Study Guide - Quiz Guide: Market Capitalization, Agl Energy, Root Mean Square
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Total Current Asset Current Ratio Effect on Net Income
a | Cash is acquired through issuance of additional common stock | ____ | ____ | ____ | |||||
b | Merchandise is sold for cash | ____ | ____ | ____ | |||||
c | Federal income tax due for the previous year is paid | ____ | ____ | ____ | |||||
d | A fixed asset is sold for less than book value | ____ | ____ | ____ | |||||
e | A fixed asset is sold for more than book value | ____ | ____ | ____ | |||||
f | Merchandise is sold on credit | ____ | ____ | ____ | |||||
g | Payment is made to trade creditors for previous purchases | ____ | ____ | ____ | |||||
h | A cash dividend is declared and paid | ____ | ____ | ____ | |||||
I | Cash is obtained through short- term bank loans | ____ | ____ | ____ | |||||
J | Short- term notes receivable are sold at a discount | ____ | ____ | ____ | |||||
k | Marketable securities are sold below cost | ____ | ____ | ____ | |||||
L | Advances are made to employees | ____ | ____ | ____ | |||||
m | Current operating expenses are paid | ____ | ____ | ____ | |||||
n | Short- term promissory notes are issued to trade creditors in exchange for past due accounts payable | ____ | ____ | ____ | |||||
o | 10- year notes are issued to pay off accounts payable | ____ | ____ | ____ | |||||
p | A fully depreciated asset is retired | ____ | ____ | ____ |
4 DEBT RATIO- Bartley Barstools has an equity multiplier of 2.4, and its assets are financed with some combination of long-term debt and common equity. What is its equity ratio? What is its debt ratio?
6 MARKET/BOOK RATIO- Jaster Jets has $10 billion in total assets. Its balance sheet shows $1 billion in current liabilities, $3 billion in long-term debt and $6 billion in common equity. It has 800 million shares of common stock outstanding, and its stock price is $32 per share. What is Jaster
You are tasked with estimating the price per share of Kimberly Clark. For the 2016 fiscal year, the company had EBIT of $3.328 billion, interest expense of $0.319 billion, and an income tax rate of 35%. Depreciation amounted to $0.705 billion and Capex was $0.771 billion. From the balance sheet, you note the following about working capital:
The company has an equity beta of 0.72. The 30-year T-bond rate is 3.04% and the market risk premium is 6%. The company has total debt of $7.63 billion and 0.365 billion shares outstanding. The company has a cost of debt of 4% and a D/E=0.16. Analysts expect that the Cash Flows will grow at 2.5% per year in perpetuity. Estimate the price per share of Kimberly Clark.
12/31/2016 | 12/31/2015 | |
Receivables | $2.176 | $2.281 |
Inventory | $1.679 | $1.909 |
Payables | $4.713 | $4.680 |