Chapter 13 Practice Exam Q&amp;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:
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
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
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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