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You are considering the purchase of ABC Co . You expect that ABC Co . can generate cash flows of $ 3 4 , 0
You are considering the purchase of ABC Co You expect that ABC Co can generate cash flows of $$ and $ over the next three years, respectively. After that time, the business wilt be worthless. An annual rate of return of percent is applicable to this potential purchase. What should you be willing to pay today to buy ABC Co
Financial Ratios:
a A firm has total assets of $; longterm debt of $; total equity of $; net fixed assets of $; and sales of $ The profit margin is percent. What is the current ratio?
b A firm has total assets of $ There are shares of stock outstanding with a market price of $ a share. The firm has a profit margin of percent and a total asset turnover of What is the priceearnings ratio?
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