Questions from Corporate Finance

Q: Toyota Motor Credit Corporation (TMCC), a subsidiary of Toyota Motor

Toyota Motor Credit Corporation (TMCC), a subsidiary of Toyota Motor Corporation, offered some securities for sale to the public on March 28, 2008. Under the terms of the deal, TMCC promised to repay...

Q: Toyota Motor Credit Corporation (TMCC), a subsidiary of Toyota Motor

Toyota Motor Credit Corporation (TMCC), a subsidiary of Toyota Motor Corporation, offered some securities for sale to the public on March 28, 2008. Under the terms of the deal, TMCC promised to repay...

Q: As you increase the length of time involved, what happens to

As you increase the length of time involved, what happens to future values? What happens to present values?

Q: Although appealing to more refined tastes, art as a collectible has

Although appealing to more refined tastes, art as a collectible has not always performed so profitably. During 2010, Deutscher-Menzies sold Arkie under the Shower, a painting by renowned Australian pa...

Q: The most recent financial statements for Williamson Inc., are shown here

The most recent financial statements for Williamson Inc., are shown here (assuming no income taxes): Assets and costs are proportional to sales. Debt and equity are not. No dividends are paid. Next y...

Q: The 2014 balance sheet of Jordan’s Golf Shop, Inc., showed

The 2014 balance sheet of Jordan’s Golf Shop, Inc., showed long-term debt of $1.625 million, and the 2015 balance sheet showed long-term debt of $1.73 million. The 2015 income statement showed an inte...

Q: Both ROA and ROE measure profitability. Which one is more useful

Both ROA and ROE measure profitability. Which one is more useful for comparing two companies? Why?

Q: Could a company’s change in net working capital be negative in a

Could a company’s change in net working capital be negative in a given year? (Hint: Yes.) Explain how this might come about. What about net capital spending?

Q: Consider the ratio EBITD/Assets. What does this ratio tell

Consider the ratio EBITD/Assets. What does this ratio tell us? Why might it be more useful than ROA in comparing two companies?

Q: Dahlia Colby, CFO of Charming Florist Ltd., has created the

Dahlia Colby, CFO of Charming Florist Ltd., has created the firm’s pro forma balance sheet for the next fiscal year. Sales are projected to grow by 10 percent to $360 million. Current assets, fixed as...