BUS_320_Chapter_3_Assignment_Solutions

BUS_320_Chapter_3_Assignment_Solutions - Change in R/E =...

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BUS 320 Chapter 3 Assignment Solutions 1) Net Cash Flow = $4,200,000 + $700,000 = $4,900,000 2) Change in R/E = $620M – $570M = $50M Net Income – Change in R/E = Dividends Paid $70M $50 M = $20M 3) Net Income = Dividends Paid +
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Unformatted text preview: Change in R/E = $45.5M + ($323.7M $275.4M) = $45.5M + $48.3M = $93.8M 4) MVA = Market Value of Equity Book Value of Equity $275M = (# shares x $75/share) $650M $925M = (# shares)($75/share) # shares = 12.3M...
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This note was uploaded on 01/11/2011 for the course BUS 320 taught by Professor Sloan during the Winter '08 term at N.C. State.

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