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Corporate Finance A Land 600 Profit Fill question marks if you know that the requirement of investors are 11% of the return on capital 1, and net profit margin is 0,26. 2. Assess the cash flow development of examined company (by indirect methodologv). Where we spent most of our money? 3. Did the examined company created the economic value added for their investors? Could you explain how the situation in the company should look like if the company would not create any added value? Evaluate the cost of capital of examined company (in currency and in percentage also) 4. 5, Suggest if it is worth (from WACC position) to accept another CZK 300 loan with the interest i2 % or reinvest profit in the same amount (CZK 300), if the owners' expected return is 10 %. Your competitor has a cost function such as: TC-175 . 0, 6-Q Please decide which company (you or the competitor) has more effective technology (a.k.a cost function) and explain why Could you assess what kind of financial strategy, is the company using and if it is healthy? (Compare financial strategy with liquidity). What would be your suggestions if you would like to propose neutral 6. 7. strategy? 8 Would shareholders be satisfied with the amount of dividends which will receive lately? Why? 9. How much would sales decline to make the leverage effect neutral? 10, Please calculate and comment CCC cycle? what means negative CCC? 11. Could you explain and calculate DFL (degree of financial leverage)? What the result can tell you? Fulfilled following table if you know that tax is 20 % and cost of equity is 15 %. Taxes are not paid from negative income. Please add calculation (not only result) to each parameter 2. per (total) 200 600 600 50 0.3 20% 800 200 400 600 0 ACC? A ? What is the nominal cost of trade credit under credit term 2/10, net 40. 3. Corporate Finance A Land 600 Profit Fill question marks if you know that the requirement of investors are 11% of the return on capital 1, and net profit margin is 0,26. 2. Assess the cash flow development of examined company (by indirect methodologv). Where we spent most of our money? 3. Did the examined company created the economic value added for their investors? Could you explain how the situation in the company should look like if the company would not create any added value? Evaluate the cost of capital of examined company (in currency and in percentage also) 4. 5, Suggest if it is worth (from WACC position) to accept another CZK 300 loan with the interest i2 % or reinvest profit in the same amount (CZK 300), if the owners' expected return is 10 %. Your competitor has a cost function such as: TC-175 . 0, 6-Q Please decide which company (you or the competitor) has more effective technology (a.k.a cost function) and explain why Could you assess what kind of financial strategy, is the company using and if it is healthy? (Compare financial strategy with liquidity). What would be your suggestions if you would like to propose neutral 6. 7. strategy? 8 Would shareholders be satisfied with the amount of dividends which will receive lately? Why? 9. How much would sales decline to make the leverage effect neutral? 10, Please calculate and comment CCC cycle? what means negative CCC? 11. Could you explain and calculate DFL (degree of financial leverage)? What the result can tell you? Fulfilled following table if you know that tax is 20 % and cost of equity is 15 %. Taxes are not paid from negative income. Please add calculation (not only result) to each parameter 2. per (total) 200 600 600 50 0.3 20% 800 200 400 600 0 ACC? A ? What is the nominal cost of trade credit under credit term 2/10, net 40. 3