the VC is checking your business acumen and says, "If I give you $500,000, and you purchase your additional stores, your total assets will be around a million dollars.  What is your current ratio?"  Please calculate the current ratio?

Assume the following:   • A company is importing and selling Mercedes cars.   • An Islamic bank invests US$8 million for an 80% profit share.   • An investor invests US$2 million for a 20% profit share.   • The investor is to be paid a 10% management fee as percentage of profit after expenses.   • Sale proceeds = US$12,400,000 Expenses = US$200,000   Calculate the following:   1.1. The total return to the bank:   1.2. The total return to the investor:

Your personal banker added a clause in the contract. To be entitle for the loan, the business should yield a positive NPV. To set up the business, you will be required to purchase an equipment costing Rs 60,000.00. You expect inventory will increase by Rs 18,000.00 and accounts payable will increase by Rs5000.00. All the other working capital components will stay the same. So the change in net operating working capital is Rs 13,000.00 at t=0. You expect to keep the company for 4 years and you expect to sell 20,000.00 units of peanut butter at a unit price of Rs35.00 and believe that both prices and quantity will remain the same. The fixed cost is Rs 7,000 every year and variable costs will be Rs1.03 per unit. You plan to use the straight- line depreciation and the equipment will be fully depreciated after 4 years. The salvage value is Rs24, 000 and tax rate is 23% 1. What are the incremental cash flows for the 4 years 2. If the WACC is 11%, will you get the loan?

Royal Mount Games would like to invest in a division to develop software for video games. To evaluate this decision, the firm first attempts to project the working capital needs for this operation. Its chief financial officer has developed the following estimates (in millions of dollars): (To copy the table below and use in Excel, click on icon in the upper right corner of table.) Year 1 Year 2 Year 3 Year 4 Year 5 1 Cash 5 12 14 16 14 2 Accounts receivable 18 22 23 21 25 3 Inventory 4 9 10 14 15 4 Accounts payable 17 22 24 27 31 Assuming that Royal Mount currently does not have any working capital invested in this division, calculate the cash flows associated with changes in working capital for the first five years of this investment. (Enter increases as negative numbers since they are uses of cash.) The cash flow associated with the change in working capital for year 1 is $ integer.) million. (Round to the nearest

Can you help me answer this with a step by step explanation and display any formulas used.? There is a firm, which we are prospecting as a purchase candidate. It has the following features we find attractive. First, it will enable us to sell to the clients of this firm what we already are selling our existing clients. The revenue addition will be $12 million. However, it will induce $3 million more expenses in attaining that higher level of revenue. Secondly, it will enable us to sell a division of the firm that does not rally connect with our operations for $5 million. Thirdly, since there is a lot of repetition of positions ( we are in the same line of business) we can lay off 50 employees permanently. The average salary of those employees is $60,000. The coc of the firm is 10%. Calculate the amount that we can bid to acquire this company.

A firm's EBIT is $25 billion. It pays $3 billion in interest. What are its earnings? (Note: Enter your answer without the billions or the dollar sign, so if you think the answer is $5 billion, just enter 5) Numeric Response

Draw the cash flow diagram with your solution.In a certain department store, the monthly salary of a saleslady is partly constant and partly varies with her sales for the month. When the value of her sales for the month is P10,000, her salary for the month is P900. When her salary for the month goes up to P12,000, her monthly salary becomes P1,000. What must be the value of her sales for the month so that her salary for the month will be P2,000?