By Zhipeng Yan Corporate Finance Stephen A. Ross‚ Randolph W. Westerfield‚ Jeffrey Jaffe Chapter 1 Introduction to Corporate Finance ..................................................................... 2 Chapter 2 Accounting Statements and Cash Flow.............................................................. 3 Chapter 3 Financial Markets and NPV: First Principles of Finance................................... 6 Chapter 4 Net Present Value....................................................
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our findings in Part A‚ the company will definitely need outside financing. There is a cash deficit in three months out of the year that was examined. The months that are deficits are March‚ April‚ and June 2004. If there is no outside financing brought into the company‚ the cash that is needed in order to cover the expenses that are incurred the month following each deficit will not be available. Without the cash being fed into the company through financing‚ there would be no way for the company to
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the two periods. 2004 2003 Absolute Liquidity 5/895 = 0.005:1 = 40/355 = 0.11:1 From looking at the absolute liquidity ratios of the firm we would say that the firm is not very liquid at the moment due to the low amount of cash that is on hand and the increase in accounts receivable and inventory from the previous year. When comparing the previous year to this year we can see that the absolute liquidity has decreased by at least half meaning that the company is half as liquid
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and mangers is the balance sheet. The second statement used by accountant’s income statement‚ which is also important to shareholders. The third statement is the retained earnings statement‚ and the fourth financial statement is the statement of cash flows. Each financial statement has a different purpose and shows different aspects of the company’s finances. However‚ these financial statements are integrated and work together to provide shareholders financial information. This paper will defines
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ORGANIZATION……..…………5-9 CHAPTER: THREE CAPITAL STRUCTURE ANALYSIS………………………….10-15 Fixed Assets……………………………………………………….10-12 Inventories…………………………………………………………12-15 CHAPTER: FOUR ANALYSIS OF ASSETS…………………………………………..16-18 CHAPTER: FIVE CASH FLOW ANALYSIS………..………………………………19-26 CHAPTER: SIX FINANCIAL RATIO ANALYSIS…...............................27-28 CHAPTER: SEVEN SUMMARY AND CONCLUSION……………………… CHAPTER: ONE INTRODUCTION OF THE PROJECT Theory is just limited to knowledge‚ but practical
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Ratio Analysis Assignment-Danielle Goettl Using the financial ratios studied in this course‚ prepare a financial analysis of Marriot’s financial results for 2007-2011. Your analysis should address the following: 1. Income Statement: a. What trends do you see in Total Revenue? The trends that I see are that the total revenue for Marriot has stayed fairly consistent over the last five years. The smallest revenue year was in 2009 and but it wasn’t hugely drastic. b. How does
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effects respectively. What would be a good example of each type of cash flow above? Explain whether each type of cash flow above should be included in the cash flow estimation for projects or not. Why? 2. In class‚ we discussed three distinct cash flows (i.e. at time zero‚ each year over the life of the project and at the very end of project) to be estimated to come up with total cash flows. What are those? Explain how each cash flow can be estimated. 3. When two projects have different project
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Relevant cash flows Answer: d Diff: E . Which of the following statements is most correct? a. The rate of depreciation will often affect operating cash flows‚ even though depreciation is not a cash expense. b. Corporations should fully account for sunk costs when making investment decisions. c. Corporations should fully account for opportunity costs when making investment decisions. d. Statements a and c are correct. e. All of the statements above are correct. Relevant cash flows Answer:
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Cash Budget Problem Answer the following questions using the information below: The following information pertains to Hepburn Company: Month Sales Purchases January $60‚000 $32‚000 February $80‚000 $40‚000 March $100‚000 $56‚000 ∙ Cash is collected from customers in the following manner: Month of sale 30% Month following the sale 70% ∙ 40% of purchases are paid for in cash in the month of purchase‚ and the balance is paid the following month. ∙ Labor costs are 20% of sales. Other
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return on these assets. Ques 1. What is the amount of annual cash flows that Polaris must earn from these projects to have a 10% internal rate of return? Solution 1:Initial Investment=$2.12 million=$212000 Time Period (n) =10 years At IRR‚=10%‚Net Present Value of Investment=0 i.e. Present Value of 10 years Cash Flow-Initial Investment=0 Initial Investment =Present Value of 10 year Cash Flow We will get Present value of 10 year equal cash flow(CF) using annuity formula Initial Investment=CF*(1-(1+IRR)^(-n))/IRR
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