Chapter 13 Practice Exam Q&A

Chapter 13 Practice Exam Q&A - Chapter 13 Practice Exam...

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Chapter 13 Practice Exam
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Questions 1-5 The following balance sheet and income statement is for questions #1 to #6: Notes:
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Questions 1-5 cont’d The following balance sheet and income statement is for questions #1 to #6: Jokers, Inc. 20x1 and 20x2 Balance
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Question 1 What is Joker’s FCFF for 20x2? a. -$1,355 b. -$1,155 c. -$1,405 d. -$1,205
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Answer - Question 1 FCFF = EBIT – Tax + Depr – CAPEX – NWC EBIT = 1270; Tax = 380; Depreciation = 200; CAPEX = Chg in Gross Fixed Assets = Chg in Net Fixed Assets + Depreciation = 12,592-11,285+200 = 1507; Chg in NWC = Chg in Current Assets – Chg in Current Liab. = (6888-5900)-(2870-
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Question 2 What is Joker’s FCFE for 20x2? a. $-1,790 b. -$1,410 c. -$1,560 d. -$1,940
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Answer - Question 2 FCFE = N.I. + Depr – CAPEX – NWC + Increase in LTD N.I. = 760; Depreciation = 200; CAPEX = Chg in Gross Fixed Assets = Chg in Net Fixed Assets + Depreciation = 12,592-11,285+200 = 1507; Chg in NWC = Chg in Current Assets – Chg in Current Liab. = (6888-5900)-(2870-
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What is Joker’s cost of equity? a.
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This note was uploaded on 12/19/2011 for the course BUS M 301 taught by Professor Jimbrau during the Fall '11 term at BYU.

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Chapter 13 Practice Exam Q&A - Chapter 13 Practice Exam...

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