FI3300_Spring08_Exam1SOL

FI3300_Spring08_Exam1SOL - Question 1 e) Maximize...

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Question 1 e) Maximize shareholder wealth Question 2 b), c), thus e)
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Problem 3 a Gross sales $67,000 $2,300 Net sales $64,700 COGS *1 $40,600 Gross Profit $24,100 Management salaries $14,550 $3,000 Depreciation $1,200 $2,000 Operating Profit $3,350 Interest exp $1,430 EBT $1,920 Taxes $768 Net Income $1,152 *1 Beg INV $94,000 Purchases $3,400 End INV $56,800 COGS $40,600 b par value Book value Common stock 8 19000 # shares 2375 EPS NI / # shares 0.49 c Market cap 35000 Price Market cap / # shares 14.74 P/E 30.38
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Problem 4 Cash $5,350 NP $5,000 *1 Net A/R $21,400 AP $8,900 *2 INV $88,000 Accr $4,650 CPLTD $2,500 Current assets $114,750 Current Liabilities $21,050 GFA $12,000 LTD $43,000 Acc dep $9,500 Total Liabilities $64,050 NFA $2,500 CS $28,900 APIC $15,600 RE $8,700 *3 Total Assets $117,250 *1 Gross A/R $23,400 $2,000 Net A/R $21,400 *2 Beg INV $35,000 Purchases $98,000 COGS $45,000 End INV $88,000 *3 RE 2006 $4,500 NI 2007 $8,500 DIV 2007 $4,300 RE 2007 $8,700
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FI3300_Spring08_Exam1SOL - Question 1 e) Maximize...

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