Questions from Corporate Finance

Q: Prepare the 2009 combined common-size, common–base year

Prepare the 2009 combined common-size, common–base year balance sheet for Just Dew It.

Q: For each account on this company’s balance sheet, show the change

For each account on this company’s balance sheet, show the change in the account during 2009 and note whether this change was a source or use of cash. Do your numbers add up and make...

Q: Based on the balance sheets given for Just Dew It, calculate

Based on the balance sheets given for Just Dew It, calculate the following financial ratios for each year: a. Current ratio. b. Quick ratio. c. Cash ratio. d. NWC to total assets ratio. e. Debtâ...

Q: Y3K, Inc., has sales of $5,276,

Y3K, Inc., has sales of $5,276, total assets of $3,105, and a debt–equity ratio of 1.40. If its return on equity is 15 percent, what is its net income?

Q: A company has net income of $218,000, a

A company has net income of $218,000, a profit margin of 8.70 percent, and an accounts receivable balance of $132,850. Assuming 70 percent of sales are on credit, what is the company’s days’ sales in...

Q: The Ashwood Company has a long-term debt ratio of .

The Ashwood Company has a long-term debt ratio of .45 and a current ratio of 1.25. Current liabilities are $875, sales are $5,780, profit margin is 9.5 percent, and ROE is 18.5 percent. What is the am...

Q: You’ve probably noticed coverage in the financial press of an initial public

You’ve probably noticed coverage in the financial press of an initial public offering (IPO) of a company’s securities. Is an IPO a primary market transaction or a secondary market transaction?

Q: In response to complaints about high prices, a grocery chain runs

In response to complaints about high prices, a grocery chain runs the following advertising campaign: “If you pay your child $3 to go buy $50 worth of groceries, then your child makes twice as much on...

Q: Firm A and firm B have debt–total asset ratios of

Firm A and firm B have debt–total asset ratios of 35% and 30% and returns on total assets of 12% and 11%, respectively. Which firm has a greater return on equity?

Q: Sherwood Inc.’s net income for the most recent year was

Sherwood Inc.’s net income for the most recent year was $13,168. The tax rate was 34 percent. The firm paid $3,605 in total interest expense and deducted $2,382 in depreciation expense. What was the c...