# Project #87377 - Corporate Finance

 UNIT 1: TEXTBOOK PROBLEMS CHAPTER 2: PROBLEM 1 Current Assets \$7,300 Net Fixed Assets \$26,200 Current Liabilities \$5,700 Long-Term Debt \$12,900 Shareholder Equity = Net Working Capital = CHAPTER 2: PROBLEM 2 Income Statement Sales \$675,300 Costs \$297,800 Depreciation Expense \$45,100 EBIT Interest Expense \$20,700 EBT Taxes @ 35% Net Income = Cash Dividends \$62,000 Addition to Retained Earnings = Tax Rate = 35% CHAPTER 2: PROBLEM 4 Taxable Income \$315,000 Table 2.3 Taxable Income Taxable Income (cont) Tax Rate 0 50,000 15% 50,001 75,000 25% 75,001 100,000 34% 100,001 335,000 39% 335,001 10,000,000 34% 10,000,001 15,000,000 35% 15,000,001 18,333,333 38% 18,333,334 + 35% Income Taxes = Average Tax Rate = Marginal Tax Rate = (Note: No formula needed. Just input the correct rate from the Tax Rate column.) CHAPTER 2: PROBLEM 5 Sales \$29,200 Costs \$10,400 Depreciation Expense \$1,800 EBIT Interest Expense \$1,050 EBT Taxes @ 40% Net Income Tax Rate 40% Operating Cash Flow = CHAPTER 3: PROBLEM 2 Debt/Equity Ratio 0.65 Return on Assets 9.80% Total Equity \$850,000 Equity Multiplier = Return on Equity = Net Income = CHAPTER 3: PROBLEM 6 ROE 16% Payout Ratio 25% Retention Ratio (Note: You must calculate the retention ratio first then the sustainable growth rate.) Sustainable Growth Rate =

 Subject Business Due By (Pacific Time) 10/18/2015 01:00 pm
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