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A company has a turnover of SEK 50,000,000. Profit after financial poster amounts to SEK 2,000,000. The company distributes SEK 500,000 to its owners. The
A company has a turnover of SEK 50,000,000. Profit after financial poster amounts to SEK 2,000,000. The company distributes SEK 500,000 to its owners. The company's total assets amount to SEK 100,000,000 on 1/1 2021. The debt / equity ratio is 4. a) To what amount(SEK) does equity amount at the beginning of the year? For points, calculation is required. b) By what percentage does equity grow? For points, calculation is required. c) How is the value of this company affected according to MM 1 proposition if the debt / equity ratio is reduced. Ignore taxes and assume an efficient market. For points, motivation is required
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