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The managerial balance sheet for Ajax Corporation is shown below. All numbers are in millions: Invested Capital $ 10 Cash $ 20 Working capital $120
The managerial balance sheet for Ajax Corporation is shown below. All numbers are in millions: Invested Capital $ 10 Cash $ 20 Working capital $120 Assets Capital Emploved $50 Short and long term debft ??? Owner's equity 8 What is the Owners equity for Ajax Corporation (above)? 9 What is the Invested capital for Ajax Corporation (above)? 10 How much does the capital employed change the moment after Ajax (above) takes on an additional $20 million in debt by selling bonds. (A) (B) (C) (D) Increases by $20k S0 Decreases by $20k None of the above 11 When Ajax uses $5 million of its cash to buy back some of its outstanding bonds, what changes on the left hand side of the managerial balance sheet? (A) (B) (C) (D) (E) Cash increases by $5 million Cash decreases by $5 million Working capital increases by $5 million Assets increase by $5 million None of the above
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