ACC351A_midterm_with_solutions_rev

ACC351A_midterm_with_solutions_rev - ACC351A MidTerm

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MidTerm Refer to the Kellogg’s annual report, attached.  Your calculations should be based on the  2006 figures.  You, with your brand new Masters degree were hired by Kellogg to perform interesting  financial analysis.   The CFO asks you to compute the following: 1. 10%  What is the amount of the total outstanding obligations and commitments of  Kellogg in 2006? On balance sheet $8,645  Off balance sheet    575 Total                     $9,220 2. 10%  What is Kellogg’s profit margin (return on sales), return on equity and long  term debt to total asset ratios? Net Earnings/Net Sales = 1,004.1/10,906.7=9.2% ROE = Net Earnings/Average Equity = 1,004.1/(2,069+2,283.7)/2 = 46.1% LTD/Total Assets = 3,053/10,714 = 28.4% 3. 20%  What is Kellogg’s WACC assuming the beta is 1.2? Rf+B(Rm-RF) = Ke
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This note was uploaded on 12/08/2010 for the course ACCOUNTING 50C taught by Professor Fakoor during the Spring '09 term at Golden Gate.

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ACC351A_midterm_with_solutions_rev - ACC351A MidTerm

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