Name: Please show the formulae that you use. The Balance Sheet and Income Statement provided for ABC Corp. on page 2 are for questions 4, 5, 6 and 7. Please note the units on the financial statements when answering the questions. 1. Which Financial Statement gives a snap shot of the financial condition of a Company at a point in time? 2. What factor(s) can cause Cash Flow to be different from Net Income in any given period? 3. If a company's Accounts Payable increase during a period, how will that effect Free Cash Flow if everything else stays the same? 4. Calculate the Net Working Capital, Current Ratio and Days Receivable for ABC Corp. 5. Calculate the Enterprise Value and EBITDA Ratios for ABC Corp. 6. What is the Earnings per Share (EPS) for ABC Corp.? Assuming the market price for ABC Corp. is $50/share what is the P/E ratio for ABC Corp.? (15 points) 7. What are the Debt-Equity and the Times Interest Earned ratios for ABC Corp.? Any observation or comment? 8. Companies Y and Z are both in the same industry and have no debt. Company Y has shown a return on assets (ROA) of 10% and pays out 10% of its earnings as dividends to shareholders. Company Z shows a ROA of 12% and pays out 50% of its earnings to shareholders as dividends. Assume that both companies continue to perform as they have in the past. Which company do you think has the ability to fund a higher growth rate with retained earnings? Why? ABC Corp Bohet Ad Red A Ray 3 Herian| Deposland Pred Experim Inventory Tour Long Term D As 216676 Long Tum Property dingi ABC Corp Income Store Yowed 12012017 5 Rover Cost of ICOS 2009 ST Operating Salary and General and Ar Decision and Amortion Income from Operatione 50 Pre Tome roome Taxperte Net Income Dividence Addition to Punained Em PURE Shermal De C uang tamang To Total Dabl- Ches rum Calaai | EBITDA - Earnings Before Interest, Taxes Depreciation and Amortization Enterprise Value = Market Value of Stock + Book Value of Debt - Cash Internal Growth Rate = (ROA retention rate) (1 - ROAretention rate) Sustainable Growth Rate (ROE"retention rate) (1 - ROE"retention rate) 3 Name: Please show the formulae that you use. The Balance Sheet and Income Statement provided for ABC Corp. on page 2 are for questions 4, 5, 6 and 7. Please note the units on the financial statements when answering the questions. 1. Which Financial Statement gives a snap shot of the financial condition of a Company at a point in time? 2. What factor(s) can cause Cash Flow to be different from Net Income in any given period? 3. If a company's Accounts Payable increase during a period, how will that effect Free Cash Flow if everything else stays the same? 4. Calculate the Net Working Capital, Current Ratio and Days Receivable for ABC Corp. 5. Calculate the Enterprise Value and EBITDA Ratios for ABC Corp. 6. What is the Earnings per Share (EPS) for ABC Corp.? Assuming the market price for ABC Corp. is $50/share what is the P/E ratio for ABC Corp.? (15 points) 7. What are the Debt-Equity and the Times Interest Earned ratios for ABC Corp.? Any observation or comment? 8. Companies Y and Z are both in the same industry and have no debt. Company Y has shown a return on assets (ROA) of 10% and pays out 10% of its earnings as dividends to shareholders. Company Z shows a ROA of 12% and pays out 50% of its earnings to shareholders as dividends. Assume that both companies continue to perform as they have in the past. Which company do you think has the ability to fund a higher growth rate with retained earnings? Why? ABC Corp Bohet Ad Red A Ray 3 Herian| Deposland Pred Experim Inventory Tour Long Term D As 216676 Long Tum Property dingi ABC Corp Income Store Yowed 12012017 5 Rover Cost of ICOS 2009 ST Operating Salary and General and Ar Decision and Amortion Income from Operatione 50 Pre Tome roome Taxperte Net Income Dividence Addition to Punained Em PURE Shermal De C uang tamang To Total Dabl- Ches rum Calaai | EBITDA - Earnings Before Interest, Taxes Depreciation and Amortization Enterprise Value = Market Value of Stock + Book Value of Debt - Cash Internal Growth Rate = (ROA retention rate) (1 - ROAretention rate) Sustainable Growth Rate (ROE"retention rate) (1 - ROE"retention rate) 3