ECON 4400 Study Guide - Final Guide: Net Present Value, Amedeo Modigliani, Capital Market
8 Aug 2016
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Alpha ltd and beta ltd are manufacturing companies in the same industry. You are provided with the following summarised information in relation to both companies: Income statements for year ended 31 march 2010. A better strategy, though, is to use pre-bid defences to dissuade potential acquirers from making a bit in the first place. The finance manager of willow plc is evaluating two mutually exclusive projects with the following cash flows. Willow"s costs of capital is 10% and both investment projects have zero scrap value. The company"s current return on capital employed is 12% (average investment basis) and the company used straight-line depreciation over the life of the projects. Current liabilities (iv) acid test ratio current assets - stock. Identify and comment on the main trends as shown by the above financial information (40 marks in total) 8 points from any of the comments below. Sales have increased significantly over the 3 years.
