Questions from Corporate Finance

Q: If Excelsior Inc. ’ s expected sales growth rate is 5

If Excelsior Inc. ’ s expected sales growth rate is 5 percent, determine the external financing required. Will the corporation have a cash surplus or deficit?

Q: The firm ’ s dividend payout ratio is 30 percent. What

The firm ’ s dividend payout ratio is 30 percent. What was the firm ’ s year 2 net income?

Q: Using the net income and earnings per common share (EPS)

Using the net income and earnings per common share (EPS) figures from Canadian Pacific ’ s (CP ’ s) income statement (Figure 3‐5), determine how many shares (approximately) the company had outstanding...

Q: List the four areas of conflict of interest between shareholders and managers

List the four areas of conflict of interest between shareholders and managers.

Q: What was the growth rate of sales at CP in 2013 and

What was the growth rate of sales at CP in 2013 and 2014? Did the sales growth rate increase or decrease?

Q: Based on the balance sheet you created, how much working capital

Based on the balance sheet you created, how much working capital does Finns ’ Fridges have?

Q: Suppose that Finns’ Fridges actually pays $270 in dividends in year

Suppose that Finns’ Fridges actually pays $270 in dividends in year 3. Determine the value of the retained earnings account at the end of year 3 based on the forecast net income calculated in Practice...

Q: In 2015, a firm ’ s revenue is $100,

In 2015, a firm ’ s revenue is $100,000, cost of sales is $40,000, rent is$15,000, depreciation is$3,000, and interest paid is $2,000. Its tax rate is 35 percent. a. Construct an income statement base...

Q: What is the firm’ s net working capital in year 2?

What is the firm’ s net working capital in year 2?

Q: For GG. Co., calculate the degree of total leverage (

For GG. Co., calculate the degree of total leverage (DTL) and break‐even point of sales at which the firm covers all its operating and fixed costs, given the following information: sales are $5,050,00...