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Hello, can I please get some help with the questions in the attachment Thanks in advance Question 3 Below are some summary numbers for a
Hello, can I please get some help with the questions in the attachment
Thanks in advance
Question 3 Below are some summary numbers for a firm for fiscal years 2014 and 2015 (in millions of dollars). [3+2] (a) Calculate return on common equity (ROCE), return on net operating assets (RNOA), and net borrowing cost (NBC) for the two years. b) How much of the change in ROCE over the two years is due to: (I) (II) (III) (IV) Change in profit margin Change in asset turnover Change in financial leverage Change in borrowing costs? Question 4 The following are summary income statement and balance sheet numbers for a firm (in millions of dollars). The firm has a required return for operations of 9%. [8] Sales Core+operating+expenses Core+operating+income Unusual+operating+income Net+financial+expense Comprehensive+income 2012 2013 2014 ++++++++1,906 ++++++++1,773 ++++++++++++ 133 ?????? ++++++++++++ 133 +++++++++++++++7 ++++++++++++ 126 ++++++++1,985 ++++++++1,846 ++++++++++++ 139 ????? ++++++++++++ 139 +++++++++++++++8 ++++++++++++ 131 ++++++++2,064 ++++++++1,919 ++++++++++++ 145 ++++++++++++(45) ++++++++++++ 100 +++++++++++++++8 +++++++++++++92 2015 ++++++++2,147 ++++++++1,997 ++++++++++++ 150 +++++++++++++60 ++++++++++++ 210 +++++++++++++++9 ++++++++++++ 201 Net+operating+assets ++++++++++++ 945 ++++++++++++ 983 ++++++++1,022 ++++++++1,063 Net+financial+obligations ++++++++++++ 150 ++++++++++++ 155 ++++++++++++ 175 ++++++++++++ 120 Common+equity ++++++++++++ 795 ++++++++++++ 828 ++++++++++++ 847 ++++++++++++ 943 Prepare a table giving the following for 2013- 2015. Use beginning-of-period balance sheet numbers in denominators. Return on common equity (ROCE) Return on net operating assets (RNOA) Core return on net operating assets (Core RNOA) Free cash flow Net payments to common shareholders Net payments to net debt holders Asset turnover Core profit marginStep by Step Solution
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