Problem 17-1
| Sales (2008) |
$5,000,000 |
| Sales (2009) |
$6,000,000 |
| Sales increase from 2008 to 2009 |
$1,000,000 |
| Assets |
$3,000,000 |
| Current Liabilities |
$1,000,000 |
| Liabilities that increase spontaneoulsy with sales |
$500,000 |
| After-Tax Profit Margin |
5% |
| Retention Ratio |
30% |
Calculate Additional Funds Needed
Problem 17-2
| Sales (2008) |
$5,000,000 |
| Sales (2009) |
$6,000,000 |
| Sales increase from 2008 to 2009 |
$1,000,000 |
| Assets |
$4,000,000 |
| Current Liabilities |
$1,000,000 |
| Liabilities that increase spontaneoulsy with sales |
$500,000 |
| After-Tax Profit Margin |
5% |
| Retention Ratio |
30% |
Calculate Additional Funds Needed
Problem 17-3
| Sales (2008) |
$5,000,000 |
| Sales (2009) |
$6,000,000 |
| Sales increase from 2008 to 2009 |
$1,000,000 |
| Assets |
$3,000,000 |
| Current Liabilities |
$1,000,000 |
| Liabilities that increase spontaneoulsy with sales |
$500,000 |
| After-Tax Profit Margin |
5% |
| Retention Ratio |
100% |
Calculate Additional Funds Needed
Problem 17-4a
|
2005 |
2006 |
| Sales |
$700 |
|
| Operating Costs |
500 |
|
| EBIT |
$200 |
|
| Interest |
40 |
|
| EBT |
$160 |
|
| Taxes (40%) |
64 |
|
| Net Income (ANSWER) |
$96 |
|
|
|
|
| Dividends (33.33%) |
$32 |
|
| AdditIons to Retained Earnings |
$64 |
|
| Increase In Sales |
1.25 |
| Year End Operating Costs |
70% |
| Tax Rate |
40% |
| Dividend Payout Rate |
33.33% |
Problem 17-5a
| Sales |
$5,000,000,000 |
| Fixed Assets |
$1,700,000,000 |
| Fixed Assets Operating Capacity |
90% |
Evaluate Full Capacity Sales
Problem 17-6
| Sales = |
$300 |
| Growth Rate = |
1.12 |
Sales This year will =
Year-End Inventory = (ANSWER)
Inventory Turnover Ratio = (ANSWER)
Problem 18-1
| Call Option Market Price = |
$7 |
| Stock Price = |
$30 |
| Option Exercise Price = |
$25 |
A. Exercise value of the call option =
B. Premium on the option =
Problem 18-2
| Option Exercise Price = |
$15 |
| Exercise Value = |
$22 |
| Premium on the option = |
$5 |
Option's Market Value =
Stock's Current Price =
Problem 19-1
British pounds sell for $1.67 per pound
Pound per Dollar: = (ANSWER)
Problem 19-2
Cross Rate =( Dollars/Shekels times Yen/Dollar)
$1 = 3.48 Shekels
$1 = 101.8 Yen
Yen per Shekel = (ANSWER)
Problem 19-4
500 $
312.5 Euros
1 Euro = __dollar (ANSWER)
1 Dollar = __ Euro(ANSWER)
Problem 19-7
Value of 1 Krone Today = $0.18
Appreciation (10%) 1.1
Value Tomorrow
Krones Per Dollar (ANSWER)
Problem 19-8
Krona per Dollar = 6.65
Dallar per Pound = 1.67
Kronas per Pound = (ANSWER)
Problem 19-11
Number of Pesos that is = to 1 Dollar 12.8
Compact Disc cost = $10
Price of the compact disc in Mexico = (ANSWER)
Attachment:- problems.rar