Valero Energy's balance sheet showed total current assets of $3,000, all of which were required in operations (i.e., no excess cash). Its current liabilities consisted of $935 of accounts payable, $600 of 6% short-term notes payable to the bank, and $250 of accrued wages and taxes. What was its net operating working capital (NOWC)? Your answer should be between 1672 and 2027, rounded to even dollars (although decimal places are okay), with no special characters. 1,215

Valero Energy's balance sheet showed total current assets of $3,000, all of which were required in operations (i.e., no excess cash). Its current liabilities consisted of $935 of accounts payable, $600 of 6% short-term notes payable to the bank, and $250 of accrued wages and taxes. What was its net operating working capital (NOWC)? Your answer should be between 1672 and 2027, rounded to even dollars (although decimal places are okay), with no special characters. 1,215

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Muffin's Masonry, Inc.'s, balance sheet lists net fixed assets as $24 million. The fixed assets could currently be sold for $39 million. Muffin's current balance sheet shows current liabilities of $10.5 million and net working capital of $9.5 million. If all the current accounts were liquidated today, the company would receive $7.75 million cash after paying the $10.5 million in current liabilities. What is the book value of Muffin's Masonry's assets today and the market value of these assets? (Enter your answer in millions of dollars rounded to 2 decimal places.) Current assets Fixed assets Total BOOK VALUE MARKET VALUE (in millions of dollars)
Muffin’s Masonry, Inc.’s, balance sheet lists net fixed assets as $26 million. The fixed assets could currently be sold for $43 million. Muffin’s current balance sheet shows current liabilities of $11.5 million and net working capital of $10.5 million. If all the current accounts were liquidated today, the company would receive $7.85 million cash after paying the $11.5 million in current liabilities. What is the book value of Muffin’s Masonry’s assets today and the market value of these assets? (Enter your answer in millions of dollars rounded to 2 decimal places.) BOOK VALUE MARKET VALUE (in millions of dollars) Current assets Fixed assets Total
The entity has an unsecured overdraft of R20000 at prospect Bank that carries an interest rate of 22% per annum. In which one of the following statement will this item be shown? A.Statement of financial position as a current liability B.Statement of financial position as a non current liability C.Statement of income and expenditure as finance costs C.Statement of financial position as current asset
hi, this is a question for finance. i need answer asap. thx
Mansukh
Suppose an SEVP tells you that last year a bank had total interest expenses on all borrowings of BDT 12 million and noninterest expenses of BDT 5 million, while interest income from earning assets totaled BDT 16 million and noninterest revenues totaled BDT 2 million. Suppose further that assets amounted to BDT 480 million, of which earning assets represented 85 percent of that total asset while total interest-bearing liabilities amounted to 75 percent of total assets. See if you can determine the bank’s net interest and non-interest margins and its earnings base and earnings spread for the most recent year.
1. In the Wall Bricks, Inc.’s balance sheet lists net fixed assets as $12 million. The fixed assets could currently be sold for $10 million. Wall Bricks’ current balance sheet shows current assets of $6 million and current liabilities of $3 million. If all the current accounts were liquidated today, the company would receive $4 million cash after paying the $1 million in liabilities. What is the book value of Wall Bricks’ assets today? What is the market value of these assets? 2. Approximately (using the Rule of 72), how many years will it take to double a $3000 investment when interest rates are 4.5% per year? 3. A stock investor deposited $2,000 five years ago in a non-dividend-paying stock. Today the stock is valued at $3,077. What annual rate of return has this investor earned (use annual compounding)?
How much is the maximum amount of loan that ABC Co. can get from the bank? (Round up answer to the nearest thousand pesos.) On January 1, 2021, ABC Co. is valuing its equity to acquire additional financing from the bank. It gathered the following current values. Current assets P2,000,000 Noncurrent Land ??? Building 3,000,000 Equipment 7,000,000 Long term investments 4,000,000 Current Liabilities 1,500,000 Noncurrent Liabilities 8,500,000 The Land account includes 3 separate lots with details below: Original Purchase Price Increase Annual Land Acquisition Date A Jan. 1, 2010 P2,100,000 10% B Dec. 31, 2013 1,620,000 8% Jan. 1, 2015 1,800,000 9% Based on current values, ABC Co. is required to have maximum of 50% debt ratio upon the approval of the bank loan. |
How much is the maximum amount of loan that ABC Co. can get from the bank? (Round up answer to the nearest thousand pesos.)
From Part A above, assume that the bank decided to give a loan of $ 59 million to Nivea Corporation (recorded for the initial year). Nivea-Corporation invested the amount in a project and generated the following sequence of cash flows over six years: Year Cash Flow ($ million) 0 -59 1 4 2 5 3 6 4 7.33 5 8 6 8.25 Calculate the Net Present Value (NPV) and the Profitability Index (PI) over the six years. Assume discount rate 17% This project does not end after the sixth year but instead will generate cash flows far into the future. Estimate the project’s terminal value, assuming that cash flows after year 6 continue at $8.25 per year perpetuity and then recalculate the investment’s NPV. Calculate the terminal value assuming that cash flows after the sixth year grow at 2% annually in perpetuity, and then recalculate the NPV.
Suppose a bank has the following Balance Sheet Assets Liabilities RSA = 120 RSL = 90 FRL = X FRA = 110 (Fixed rate liabilities can be found if needed by determining what number it must be to balance the balance sheet.) Suppose all the Assets and Liabilities were set last year when the interest rate was 10, if the interest rate has changed by 2% since that time what is the current cost from all of the bank's liabilities? Your Answer:
1. Consider the following cash flow payments: An income of $2000 at the end of year 2, an income of $5000 at the end of year 4, an expense of $3000 at the end of year 8, and a final income of $4000 at the end of year 10. (a) Draw the cash flow diagram for the cash flow payments. (b) Write an expression: what is the present equivalent value of these payments over the 10-year period assuming an interest rate of 10% per year. Just write down the expression like "e.g. P = 1,000 (P/F, 4%, 10) + 2,500 (P/A, 4%, 5)-4,000". You don't need to calculate the final numerical answer. (Hint: you can write out the present equivalent value for each cash flow, and then sum them up.)

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