Financial Management (Exercise 01 for 2020)

(1) Keyser Materials paid $7,600 in dividends and $28,311 in interest over the past year while net working capital increased from $13,506 to $18,219. The company purchased $42,000 in net new fixed assets and had depreciation expenses of $16,805. During the year, the firm issued $23,000 in net new equity and paid off $12,000 in long-term debt. What is the amount of the cash flow from assets? (Chapter 02)

(2) The Plaza Cafe has an operating cash flow of $77,460, depreciation expense of $8,980, and taxes paid of $23,590. A partial listing of its balance sheet accounts is as follows: (Chapter 02)

What is the amount of the cash flow from assets?

(3) Global Ventures has a return on equity of 9.8 percent, a retention ratio of 70 percent, and a profit margin of 4.5 percent. The company paid $378 in dividends and has net working capital of $100. Net fixed assets are $18,550 and current liabilities are $520. What is the total equity of the firm? (Chapter 03)

(4) Use the following financial information to answer this question.

What are the values of the three components of the DuPont identity? Use ending balance sheet values. (Chapter 03)

(5) A company has a debt-equity ratio of 0.45, and a dividend payout ratio of 30 percent. The ratio of total assets to sales is constant at 1.25. If the firm would like to have a sustainable growth with a value of 6 percent per year, what profit margin must the firm achieve? (Chapter 03)

Financial Management (Exercise 01 for 2020) (1) Keyser Materials paid $7,600 in dividends and $28,311 in interest over the past year while networking capital increased from $13,506 to $18,219. The company purchased $42,000 in net new fixed assets and had depreciation expenses of $16,805. During the year, the firm issued $23,000 in net new equity and paid off $12,000 in long-term debt. What is the amount of the cash flow from assets? (Chapter 02) (2) The Plaza Cafe has an operating cash flow of $77,460, depreciation expense of $8,980, and taxes paid of $23,590. A partial listing of its balance sheet accounts is as follows: (Chapter 02) Beginning Balance Ending Current sets Net fixed assets Current losies Longform debt 6710 187340 391 516 1367000 What is the amount of the cash flow from assets? (3) Global Ventures has a return on equity of 9.8 percent, a retention ratio of 70 percent, and a profit margin of 4.5 percent. The company paid $378 in dividends and has net working capital of $100. Net fixed assets are $18,550 and current liabilities are $520. What is the total equity of the firm? (Chapter 03) (4) Use the following financial information to answer this question. OdOGO 0340 2010 Income Statement What are the values of the three components of the DuPont identity? Use ending balance sheet values. (Chapter 03) (5) A company has a debt-equity ratio of 0.45, and a dividend payout ratio of 30 percent. The ratio of total assets to sales is constant at 1.25. If the firm would like to have a sustainable growth with a value of 6 percent per year, what profit margin must the firm achieve? (Chapter 03) Financial Management (Exercise 01 for 2020) (1) Keyser Materials paid $7,600 in dividends and $28,311 in interest over the past year while networking capital increased from $13,506 to $18,219. The company purchased $42,000 in net new fixed assets and had depreciation expenses of $16,805. During the year, the firm issued $23,000 in net new equity and paid off $12,000 in long-term debt. What is the amount of the cash flow from assets? (Chapter 02) (2) The Plaza Cafe has an operating cash flow of $77,460, depreciation expense of $8,980, and taxes paid of $23,590. A partial listing of its balance sheet accounts is as follows: (Chapter 02) Beginning Balance Ending Current sets Net fixed assets Current losies Longform debt 6710 187340 391 516 1367000 What is the amount of the cash flow from assets? (3) Global Ventures has a return on equity of 9.8 percent, a retention ratio of 70 percent, and a profit margin of 4.5 percent. The company paid $378 in dividends and has net working capital of $100. Net fixed assets are $18,550 and current liabilities are $520. What is the total equity of the firm? (Chapter 03) (4) Use the following financial information to answer this question. OdOGO 0340 2010 Income Statement What are the values of the three components of the DuPont identity? Use ending balance sheet values. (Chapter 03) (5) A company has a debt-equity ratio of 0.45, and a dividend payout ratio of 30 percent. The ratio of total assets to sales is constant at 1.25. If the firm would like to have a sustainable growth with a value of 6 percent per year, what profit margin must the firm achieve? (Chapter 03)