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Please, complete the exercises. Thanks a lot in advance Corporate Finance A1 Balance sheet to December 31, 2015 Total assets Current assets Inventories Account receivables

Please, complete the exercises. Thanks a lot in advance image text in transcribed

Corporate Finance A1 Balance sheet to December 31, 2015 Total assets Current assets Inventories Account receivables Cash Long-term assets Ec Accumulated depreciation for Equipment Net: Equipment Land Total capital Short-term liabilities 500 140 Account payable 135 Long-term liabilities 0 Loans Owner's Equity 500 Common stock 00 Preferred stock 100 Retained Earnings Profit 50 85 Income statement December 31, 2016 Cost of goods sold Administrative costs EnergY 100 180 reciation EBIT interest (5%) axes (20 % Balance sheet to December 31,2016 Total assets Current assets Inventories Account receivables Cash Long-term assets Equipment Accumulated deprec Net: Equipment Land 815 Total capital Short-term liabties 75 Account payable 35 Long-term liabilities 100 Loans 385 683 Owner's Equity Common stock Preferred stock 550 Retained Earnin iation for Equipment ? Profit Fill question marks a) b) Put together the cash flow statement by indirect methodology c) Calculate the working capital (WC), net working capital (NWC) and comment if the results are healthy or not (using liquidity, profitability ratio). Explain why d) What kind of financial strategy of financing is company using? e) What is the effect of financial leverage? Is this effect positive or negative? f) What is the tax shield (in percentage and absolutely)? g) Investors are expecting to have the rate of return of 12 % What is the weighted average of cost of capital? b) If the company would like to buy a building for 400, does the company have enough money in the i) j) end of period? Determine the cost function of the company Set the DOL Each question should be calculated and properly commented

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