Question
Triton Corporation is a manufacturing company located in a country that has experienced rapid economic growth from the late 1990s to the early 2000s and
Triton Corporation is a manufacturing company located in a country that has experienced rapid economic growth from the late 1990s to the early 2000s and then went into an economic recession in the following decade. It has now emerged from the recession to earn a profit before interest and tax of $15.2 million last year (2014). The company has six operating divisions, and the results for last year were as follows.
Calculate:
1. Debt-Equity Ratio: Total Long Term Debt; Value of Equity; Debt-Equity Ration
2. Initial Investment: Investment; Tax Credit; Net Investment; Working Cap; Oppurtunity Cost; Other Invest => Initial Investment
3. D/(D+E) Ratio: Current; Optimal; Change
Beta for the Stock: Current; Optimal; Change
Cost of Equity: Current; Optimal; Change
AT Interest Rate on Debt: Current; Optimal; Change
WACC: Current; Optimal; Change
4. Short term debt (2014); Capital leases - short term (2014); Long-term debt (2014); Capital leases - long term (2014)
Total Interest-bearing liabilitites; Total Shareholders' equity; Gearing ration (most common definition); Gearing ratio (less common definition) in 2014.
5. Market Capitalization; Price/Earnings; Price/Book; Net Profit Margin (mrq); Return on Equity; Total Debt/Equity
Division Electrical Products $m 40.0 Car Accessories Industrial Services Floor Boards $m 25.4 Bathroom Accessories $m 7.0 $m $m Pipes $m 6.0 17.1 33.7 Sale (S) Cost of sales Materials (M) Salaries & Wages Other Costs 34.5 1.2 2.1 37.8 20.3 1.8 1.9 24.0 8.0 2.1 4.0 14.1 14.7 3.0 8.0 25.7 4.5 1.0 1.0 6.5 1.5 2.4 2.0 5.9 Profit Before Interest and Tax Market Share 2.2 40% 1.4 27% 3.0 30% 8.0 25% 0.5 8% 0.1 3% The company's summarised balance sheet as at the end of last year was: $m $m Net Fixed Assets 65.0 Current Assets 35.0 Current Liabilities 20.0 Net Current Assets 15.0 80.0 Loan Capital 48.0 32.0 Share Capital Reserves 10.0 22.0 32.0 Division Electrical Products $m 40.0 Car Accessories Industrial Services Floor Boards $m 25.4 Bathroom Accessories $m 7.0 $m $m Pipes $m 6.0 17.1 33.7 Sale (S) Cost of sales Materials (M) Salaries & Wages Other Costs 34.5 1.2 2.1 37.8 20.3 1.8 1.9 24.0 8.0 2.1 4.0 14.1 14.7 3.0 8.0 25.7 4.5 1.0 1.0 6.5 1.5 2.4 2.0 5.9 Profit Before Interest and Tax Market Share 2.2 40% 1.4 27% 3.0 30% 8.0 25% 0.5 8% 0.1 3% The company's summarised balance sheet as at the end of last year was: $m $m Net Fixed Assets 65.0 Current Assets 35.0 Current Liabilities 20.0 Net Current Assets 15.0 80.0 Loan Capital 48.0 32.0 Share Capital Reserves 10.0 22.0 32.0
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