Chapter 2 Homework - Francis Roman FIN100.2 Chapter 2 1....

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Francis Roman FIN100.2 Chapter 2 1. Given Current Assets $4,000 Current Liabilities $3,400 Net Fixed Assets $22,500 Long-term Debt $6,800 $26,500 $10,200 Equation Share Holder's Equity $26,500 $4,000 $10,200 $3400 Solution $16300 $600 2. Given sales = $634,000 costs = $305,000 tax rate = 35% depreciation = $46,000 interest expense = $29,000 Equation sales 634000 - costs -305000 - expenses -46000 -29000 254000 - tax rate - .35 88900 Solution net income = $165,100 3. Given same problem from #2, with $86,000 dividends Equation Addition to retained earnings = Net income - Cash dividends 165,100 - 86,000 = 79,100 Solution Addition to retained earnings = $79,100 4. Given Firm had $30,000 shares of common stock outstanding Equation EPS= net income/total shares outstanding Dividends per share = Cash dividends / Common stock outstanding Solution 165,100/30,000 = $5.50 EPS 86,000/30,000 = 2.87 DPS 5. Given Net Working Capt: Book = $410k Market = 1.8 M Net Fixed Assets: Book = 7 M Market = 3.7 M Equation Net Working Capt + Net Fixed Assets = Book/Market Value Capital
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This note was uploaded on 04/03/2008 for the course FIN 100 taught by Professor Staff during the Spring '08 term at Pennsylvania State University, University Park.

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Chapter 2 Homework - Francis Roman FIN100.2 Chapter 2 1....

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