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FE 344 Quiz 1
A junior colleague of yours has prepared the following pro forma to indicate his forecasts for a firm (in millions of dollars): The interest expense relates to bonds payable with an effective interest rate of 5% equal to the coupon […]
Finance Chapter 1 1 This month Microsoft is distributing $34 billion of financial assets to shareholders in the form of a special dividend
TEST NUMBER 1 Question 1 (32 Points) The following are partial financial statements for an industrial firm that you are required to analyze and value. All amounts are in millions of dollars. Income Statement for Fiscal Year 2004 Sales 2,000 […]
Finance Chapter 2 1 Forecast the residual operating income for 2004 that is implicit in the analysts’ forecast. Use a required annual return for operations of 9%
TEST NUMBER 2 Question 1 (10 points) Below is an excerpt from the cash flow statement of a firm for fiscal year 2003: Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash provided by […]
Finance Chapter 3 1 Prepare a reformulated comparative balance sheet that distinguishes assets and liabilities employed in operations
TEST NUMBER 3 This exam comes in two parts. Part I involves an analysis of a set of financial statements and Part II involves forecasting and valuation based on those financial statements. Part I: Analysis (20 Points) The following is […]
Finance Chapter 4 1 If both profit margin and asset turnover are expected to continue at their current levels in the future
TEST NUMBER 4 Question 1 (12 points) At the time that of its 10-Q filing of financial statements for the first half of its January 2002 fiscal year, Home Depot’s shares traded at $50 per share. The following are summaries […]
Finance Chapter 5 1 After making your valuation you discover (in footnotes) that the firm has 37 million employee stock options outstanding
TEST NUMBER 5 Question 1 (6 points) From the following information, calculate comprehensive income for fiscal year 2005. Amounts are in millions of dollars. Common shareholders’ equity, May 31, 2004 450 Share issues (including $49 tax benefit 270 from employee […]
Finance Chapter 6 1 Operating Expenses, OI from sales, before tax, Tax reported, Tax benefit of loss on other OI ,Tax benefit of net interest expense
TEST NUMBER 6 Question 1 OI = Sales x PM = $912 x 0.125 = 114 NI = OI = 114 (no net debt) Unrealized gain 8 Translation loss (6) Comp Income 116 As there is no net debt (NFO […]
Finance Chapter 7 1 Profitable firms have more investment opportunities. Investment decreases the free cash flow, turning it negative in some cases
TEST NUMBER 7 NFE = OI – Comprehensive income = 8 – 7 = 1 D = Comprehensive income – ∆CSE = 7 – 4 = 3 OI = C – I + ∆NOA = 3 + 5 = 8 […]