Chapter_07web - EXERCISES FOR CHAPTER 7 With Solutions...

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EXERCISES FOR CHAPTER 7 With Solutions Financial Statement Relationships The following condensed balance sheets were prepared for a firm (in millions of dollars). Balance Sheets 2000 1999 1998 2000 1999 1998 Operating Assets 310 285 250 Operating Liabilities 50 35 25 Financial Assets 40 20 85 Financial Liabilities 140 120 45 Common Equity 160 150 265 350 305 335 350 305 335 The income statements for 2000 and 1999 are as follows (in millions of dollars): 2000 1999 Sales 500 450 Operating expenses (including taxes) 475 432 Operating income 25 18 Net financial income (expense) after tax (5) 2 Comprehensive income 20 20
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a) Calculate: (i) Net cash paid to shareholders in 1999 and 2000 (ii) Free cash flow generated during 1999 and 2000 (iii) Return on beginning common equity ( ROCE ) for 1999 and 2000 (iv) Return on beginning net operating assets ( RNOA ) for 1999 and 2000 (v) Net borrowing cost ( NBC ) on beginning net financial obligations for 1999 and 2000 b) Explain how free cash flow was disposed of during 2000
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This note was uploaded on 10/07/2010 for the course ECTCS ec12947322 taught by Professor Johnathayeri during the Spring '10 term at Life.

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Chapter_07web - EXERCISES FOR CHAPTER 7 With Solutions...

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