Description of this paper

Using the financial statements provided on Blackboard, calculate and interpret the long-term liabilities ratios we discussed in class.

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Question

Question #10 (10 points);Consider the following potential investment, which has the same risk as the firm?s other projects;Time Cash Flow;0 -$170,000;1 $58,000;2 $63,000;3 $67,000;4 $68,000;The firm?s current weighted-average cost of capital is 14%.;a) How much value will this investment create for the firm?;b) At what discount rate will this project break even?;c) Should the firm do this investment? Be sure to justify your recommendation.;d) How would your analysis change if this potential investment was more risky than the firm?s other projects? Be specific.;for the below questions use the excel;Question #5 (6 points);Using the financial statements provided on Blackboard, calculate and interpret the days to collect ratio. Assume credit sales are 15% of total net sales.;Question;Using the financial statements provided on Blackboard, calculate and interpret the days to sell and gross profit ratios.;Question;Using the financial statements provided on Blackboard, calculate and interpret the current liabilities ratios (including cash cycle) we discussed in class.;Question;Using the financial statements provided on Blackboard, calculate and interpret the long-term liabilities ratios we discussed in class.

 

Paper#25276 | Written in 18-Jul-2015

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