Preah Kossomak Polytechnic Institute

Corporate Finance

Key Answers
Assignment
Chapter II
1. Owners equity = 84,900 and NWC = 4,900
2. Net income = 126,100
3. Addition to retained earnings = 78,100
4. EPS = 5.044 and DPS = 1.92
5. Book Value Assets = TWD 7,100,000 and Market Value = TWD 6 millions
6. Taxes = $89,720
7. Average tax rate = 30.28% and Marginal tax rate = 39%
8. OCF = $6,234
9. NCS = $ 1,400,000
10.Change in NWC = 1,960 NGN
11.CF(B) = 40,000 rubles
12. CF(S) = 235,000 rubles
13.CF(A) = 195,000 rubles and OCF = 400,000 rubles
14. Net income = 19,260, a. OCF = 41,260, b. CF(B) = 21,500, C. CF(S) =
2,250 and d. Change in NWC = 5,510
15. EBIT = $ 95,000 and Depreciation = $ 70,000
16. Common Stock = $920,000
Chapter III.
1. Current ratio = 1.28 Times and Quick ratio = 0.98 Times
2. ROA = .0690 or 6.90% and ROE = .1063 or 10.63%
3. Average collection period = 53.60 days
4. Days sales in inventory = 36.28 days
5. Debt-Equity ratio = 0.79 and Equity multiplier = 1.79
6. Calculate Net income, EPS, DPS, BVPS, MTBR, and P E ratio.
10. Average Payable Period = 77.82 days.
13 15
Assets
Current assets
Cash

2006

# 13

2007

#13

#14

#15

10,168

2.54%

10,683

2.36%

1.0506

0.9291

Prepared by Lecturer Mr. YIN SOKHENG, Master in Finance