1. Please briefly describe an income statement, statement of cash flows, and balance sheet. Please describe the five types of financial ratio analyses.
• Income Statement: It is the financial statement that describes company’s revenue, expenses and net income during period of time
• Cash Flow: It is the financial statement that describes company’s cash inflow and payment during a period of time.
• Balance Sheet: It is the…
they probably have more liquid assets available. GameStop does not have much in the way of liquid assets because they are still working on expanding even more. Between 2010 and 2011, total store numbers increased from 6,450 to 6,670. This is why cash and liquid assets are lower in 2011, because the company has been expanding and working on building more revenue up. It seems that GameStop is continuing to reinvest in itself by expanding and making the company available to more…
invest in two different projects, in order to correctly evaluate its projects, it was used three evaluation models and the results is possible to see below:
3.1 Net Present Value (NPV)
The Net Present Value (NPV) illustrates the value between future cash flow of an investment and the amount of money invested.
According to the NPV was calculated for project D and E (See Appendix), it was showed that both projects have a positive NPV, € 32.43 and € 14.96 respectively. The most interesting…
A. Income statement and Cash flow statement
Accounting profit: The process of accrual accounting recognises earned revenue and incurred expenses (Deegan & Samkin, 2013). It is the difference between the revenue earned by a company and its costs. There are certain adjustments in consideration like depreciation, interest and tax. It consists of non-cash items as well. It is also called the net income of the company. It considers both cash received/paid and to be…
cannot has so many capital.
3. This company is ASXlisted Company.
c. 1. Other assets and Pre- payments
2. Provisions and Employee benefits
e. Consolidated financial report contains the following items: assets, liability, income equity, expenses and cash flow. It can give a great look of this whole company.
a. Contributed equity: This Company currently has 562 million shares which raised in the public. It can be calculated by the numbers of shares and price per share.
c) If companies A and B were combined (merged), what would be the impact on the results on ROE? Under what conditions would such a combination make sense?
d) What is the net income during the project period?
e) Compute the net cash flow from the project during the first year.
Problem # 3 : Table 3 summarizes the financial conditions for Apple Computer Corporation. The closing stock price for Apple was $128.24 on September 26, 2008. The average number of…
1. State the Miller Modigliani (MM) dividend irrelevance proposition
Modigliani and Miller (MM) proposed that in an ideally simple and perfect capital market, shareholders are indifferent between dividend and capital gains, and the value of a company is determined solely by the earning power of its assets and investments. Focuses more on firm value but not on firm risk. MM argued that if a company with investment opportunities decides to pay dividend, so that retained earnings are insufficient…
Plantation crops and the Southern Economy
The South’s economy wasn't as strong as some people would have thought. Even with the money that the South made from their cash crops, there were 3 reasons why the economy was weak (Economy of the South 36). First, southern farmers mainly relied on tobacco, cotton, and sugar. These were also known as cash crops (Economy of the South 36). Second, since farmers didn’t pay slaves for their labor, their profits turn out to be falsely high (Economy of the…
1. Using the sales forecasts for Tysabri presented in Exhibit A, and using the discounted cash flow model presented in Exhibit B, what do you think Elan is worth?
It can be fairly realized that the proposed value of Royalty Pharma in regard to the share value of Elan and the Tysabri undermines / undervalues the growth potential and actual sales forecast of the company. At $11 per share and later on at the revised offer of $12.50, it can be said that these proposed values are not…