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Exercise 4. 25 points. Company A discloses the following information: - Return on equity =15 percent - Net operating and investment profit after taxes (NOPAT
Exercise 4. 25 points. Company A discloses the following information: - Return on equity =15 percent - Net operating and investment profit after taxes (NOPAT + NIPAT) = - Business assets = Invested capital =4,000,000 - Effective interest rate after tax=8 percent Please calculate Company A's financial leverage (debt-to-equity ratio). Note: you may obtain the answer by rewriting the alternative Du Pont (textbook) system equations, given in Slide 24 of the class presentation. Exercise 5. 25 points. At the end of fiscal year 2021, company Y discloses the following information: Please calculate Company Y's free cash flow available to debt and equity. Note: review the standard format of the statement of cash flows, described in the textbook, and discussed in class
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