Chapter_03

Chapter_03 - Chapter 3 Problems 1-30 Input boxes in tan...

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Chapter 3 Problems 1-30 Input boxes in tan Output boxes in yellow Given data in blue Calculations in red Answers in green NOTE: Some functions used in these spreadsheets may require that the "Analysis ToolPak" or "Solver Add-in" be installed in Excel. To install these, click on "Tools|Add-Ins" and select "Analysis ToolPak and "Solver Add-In."
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Chapter 3 Question 1 Input area: Equity multiplier 1.75 Total asset turnover 1.30 Profit margin 8.50% Output area: Return on equity = 19.34%
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Chapter 3 Question 2 Input area: Debt/equity ratio 1.40 Return on assets 8.7% Total equity $520,000 Output area: Equity multiplier 2.40 Return on equity 20.88% Net income $108,576
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Chapter 3 Question 3 Input area: Sales $2,700 Total assets 1,185 Debt-equity ratio 1.00 Return on equity 16% Output area: Profit margin = 0.0351 Net income = $94.80
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Chapter 3 Question 4 Input area: Sales $19,200 Costs $15,550 Assets $93,000 Debt $20,400 Equity $72,600 Next year's sales $23,040 Dividend paid $963.60 Tax rate 34% Output area: Percent increase in sales = 20% Pro forma income statement Pro forma balance sheet Sales $23,040.00 Assets $111,600.00 Debt $20,400.00 Costs 18,660.00 Equity 74,334.48 Taxable income $4,380.00 Total $111,600.00 Total $94,734.48 Taxes 1,489.20 Net income $2,890.80 Dividends $1,156.32 Add. To RE $1,734.48 $16,865.52
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Chapter 4 Question 5 Input area: Sales $54,000 Costs 34,800 Current assets 26,000 Fixed assets 105,000 Long-term debt 58,000 Equity 73,000 Net income 12,672 Payout ratio 30% Tax rate 34% Output area: Return on equity = Net income / Total equity = 0.17 b = 0.7 Sustainable growth rate = (ROE X b) / (1 - ROE X b) = 13.83% Maximum increase in sales = Sales X Sustainable growth rate = $7,469.27
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Chapter 3 Question 6 Input area: Return on equity 19% Payout ratio 25% Output area: b = 1 - Payout ratio = 75% Sustainable growth rate = ( 16.62%
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Chapter 3 Question 7 Input area: Total asset turnover 1.40 Profit margin 7.6% Equity multiplier 1.50 Payout ratio 40% Output area: Return on equity = 15.96% b = 1 - payout ratio = 60.00% Sustainable growth rate = 10.59%
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Chapter 8 Question 8 Input area: Sales $4,400 Costs 2,685 Assets 13,400 Debt 9,100 Equity 4,300 Next year's sales 5,192 Output area: Percent increase in sales = 18.00% Pro forma income statement Pro forma balance sheet Sales $5,192 Assets $15,812 Debt Costs 3,168 Equity Net income $2,024 Total $15,812 Total $388
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$9,100 6,324 $15,424
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Chapter 3 Question 9 Input area: Sales growth 10% New sales amount $440,000,000 Current assets/Sales 20% Fixed assets/Sales 140% Short-term debt/Sales 15% Payout ratio 40% Stock value $60,000,000 Long-term debt $145,000,000 Profit margin 12% Output area: a. Current sales $400,000,000 Change in sales $40,000,000 Assets Liabilities and equity Current assets $80,000,000 Short-term debt Long-term debt Fixed assets 560,000,000 Common stock Additions to retained earnings
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This note was uploaded on 12/14/2010 for the course FINC 311 taught by Professor Stanley,t during the Fall '08 term at Winthrop.

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Chapter_03 - Chapter 3 Problems 1-30 Input boxes in tan...

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