Table 1
A B $ $ Assets 74,000 140,000 PPE 54,000 110,000 Cash + AR + Inventory 20,000 30,000 Liabilities 48720 87200 Equity ? ? Research & Development
14,600 27,000 Training Expenses 8900 10200 Sales 85400 87000
Cogs & Operating expenses 45875 47650 Depreciation 20000 20000 EBIT 19,525 19350 Tax 30% 25% Net income 12,167 12158 A B Cost of equity 9% 8% Cost of debt 5.5% 4.5% A =L + E Assume Liabilities consist of 20% current liabilities and the rest is debt on which the company has to pay interest The table above shows the financial data of three companies A,B and C. The initial investment was $65000.
Required
1. Carry out a Dupont Analysis to show what has contributed to the ROE of the company [profitability; efficiency; financial leverage] 2. Calculate the WACC of the company 3. Calculate the EVA of year A,B,C. 4. Calculate the residual income of the three companies
i just need answer for company A and B forget about company c
Assignment with example.docx Classwork & Assignment Open with Google Docs Table 1 E Last ass Ravin Seenundun A B Assigned $ $ Id or create Assets 74,000 140,000 PPE 54,000 110,000 kas Done Cash + AR + Inventory 20,000 30,000 Liabilities Equity 48720 ? 87200 2 Class com mments 14,600 27,000 Research & Development Training Expenses to Ravin Seenundun Add a class com 8900 10200 Sales 85400 87000 Cogs & Operating expenses Depreciation EBIT Tax Net income 45875 20000 19,525 30% 12.167 47650 20000 19350 25% 12158 A B Cost of equity 9% 9% 8% Cost of debt 5.5% 4.5% A=L+ Assume Liabilities consist of 20% current liabilities and the rest is debt on which the company has to pay interest The table above shows the financial data of three companies A, B and C. The initial investment was $65000 Page 11 a + Required Open with Google Docs Cogs & Operating expenses Depreciation EBIT Tax Net income 45875 20000 19,525 30% 12,167 47650 20000 19350 25% 12158 9% 5.5% B Cost of equity 8% Cost of debt 4.5% A=L+ E Assume Liabilities consist of 20% current liabilities and the rest is debt on which the company has to pay interest The table above shows the financial data of three companies A, B and C. The initial investment was $65000 Required 1. Carry out a Dupont Analysis to show what has contributed to the ROE of the company [profitability; efficiency, financial leverage) 2. Calculate the WACC of the company 3. Calculate the EVA of year A,B,C. 4. Calculate the residual income of the three companies Page 1 1 4 + Assignment with example.docx Classwork & Assignment Open with Google Docs Table 1 E Last ass Ravin Seenundun A B Assigned $ $ Id or create Assets 74,000 140,000 PPE 54,000 110,000 kas Done Cash + AR + Inventory 20,000 30,000 Liabilities Equity 48720 ? 87200 2 Class com mments 14,600 27,000 Research & Development Training Expenses to Ravin Seenundun Add a class com 8900 10200 Sales 85400 87000 Cogs & Operating expenses Depreciation EBIT Tax Net income 45875 20000 19,525 30% 12.167 47650 20000 19350 25% 12158 A B Cost of equity 9% 9% 8% Cost of debt 5.5% 4.5% A=L+ Assume Liabilities consist of 20% current liabilities and the rest is debt on which the company has to pay interest The table above shows the financial data of three companies A, B and C. The initial investment was $65000 Page 11 a + Required Open with Google Docs Cogs & Operating expenses Depreciation EBIT Tax Net income 45875 20000 19,525 30% 12,167 47650 20000 19350 25% 12158 9% 5.5% B Cost of equity 8% Cost of debt 4.5% A=L+ E Assume Liabilities consist of 20% current liabilities and the rest is debt on which the company has to pay interest The table above shows the financial data of three companies A, B and C. The initial investment was $65000 Required 1. Carry out a Dupont Analysis to show what has contributed to the ROE of the company [profitability; efficiency, financial leverage) 2. Calculate the WACC of the company 3. Calculate the EVA of year A,B,C. 4. Calculate the residual income of the three companies Page 1 1 4 +
