Week 1 Homework Problems

# Week 1 Homework Problems - Week 1 Homework Problems Dustin...

This preview shows pages 1–2. Sign up to view the full content.

Week 1 Homework Problems Dustin Taylor Chadron State College FIN 631 – Managerial Finance Chapter 2 #10 CFA = CFC + CFS CFA = \$95,000 - \$345,000 = -\$250,000 -\$250,000 = OCF - (-\$85,000) - \$810,000 \$250,000 = -OCF +(-\$85,000) + \$810,000 OCF + \$250,000 = -\$85,000 + \$810,000 OCF = -\$85,000 + \$810,000 - \$250,000 OCF = \$475,000 #15 a. OCF = EBIT + Depreciation – Taxes OCF = \$77,600 + \$13,800 - \$23,520 OCF = \$67,880 b. CFC = Interest – Net new borrowing CFC = \$10,400 - (-\$7,500) CFC = \$17,900 c. CFS = Dividends paid – Net new equity raised CFS = \$12,500 - \$6,000 CFS = \$6,500 d. CFA = OCF – Net capital spending – Change in NWC \$17,900 + \$6,500 = \$67,880 - (\$21,000 + \$13,800) - Change in NWC \$24,400 = \$67,880 - \$34,800 - Change in NWC \$24,400 = \$33,080 - Change in NWC Change in NWC = \$8,680 Chapter 3 #13 a. EFN = (1.0946 x \$6,660,000) - (.1757 x \$6,660,000) - (.1423 x \$43,660,000) x (1 - .3) EFN = \$7,290,000 - \$1,170,000 - \$6,212,700 x .7 EFN = \$1,771,110

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
b. Assets
This is the end of the preview. Sign up to access the rest of the document.

## Week 1 Homework Problems - Week 1 Homework Problems Dustin...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online