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Financial Statement Analysis Income Statement for Z Company for the Year Ended Dec. 13, 20XX Sales Total Expenses EBIT Interest EBT Taxes(40%) Net Income 4,000

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Financial Statement Analysis Income Statement for Z Company for the Year Ended Dec. 13, 20XX Sales Total Expenses EBIT Interest EBT Taxes(40%) Net Income 4,000 2,000 2,000 150 1,850 740 1,110 Balance Sheet for Z Company As of December 31, 20XX 150 Cash Note Rec. Accounts Rec. Total Current Assets PP&E Total Assets 250 Accounts Payable 50 Other Liabilities 75 Total Current Liab. 375 Long-term Debt 500 Common Equity 875 Total Liab. & CE 120 270 350 255 875 Calculate the following ratios: 1. Working Capital (1 point) 2. Accounts Receivable Turnover (1 point) 3. Debt to Total Assets Ratio (1 point) 4. Profit (Net) Margin (1 point) 5. Plant Assets to Long-Term Liabilities (1point) 4. Calculate the after cost of debt if the tax rate is 35% and the YTM on the company's debt is 6.75% (1 point) 5. Using your answers in questions 2-4, Calculate the Weighted Average Cost of Capital (WACC) if Ws = 40%, Wps = 5%, and wa= 55%. (2.5 points) 6. Calculate the current price of a company's stock if De = $1.00 g= 5%, and the cost of equity is 12%. (1.5 points.)

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