Products it already received declared bankruptcy

Assignment Help Finance Basics
Reference no: EM13343655

1.Consider the following potential events that might have occurred to Global Conglomerate on December 30, 2009. For each one, indicate which line items in Global’s balance sheet would be affected and by how much. Also indicate the change to Global’s book value of equity.

a. Global used $20 million of its available cash to repay $20 million of its long-term debt.

b. A warehouse fire destroyed $5 million worth of uninsured inventory.

c. Global used $5 million in cash and $5 million in new long-term debt to purchase a $10 million building.

d. A large customer owing $3 million for products it already received declared bankruptcy,leaving no possibility that Global would ever receive payment.

e. Global’s engineers discover a new manufacturing process that will cut the cost of its flagship product by over 50%.

f. A key competitor announces a radical new pricing policy that will drastically undercut Global’s prices.

Reference no: EM13343655

Questions Cloud

Compute the concentration of an oxalic acid : Calculate the concentration of an oxalic acid (H2C2O4) solution when 48.1 mL of water is added to 18.2 mL of a 1.78 M oxalic acid solution
Define and describe the internal rate of control : From the provided of list of 10 examples, review and compare Café Market Budgets and their cost of capital (I am to find or recommend usable sites?
Explain what is the ph of nano3 what is the ph of hno3 : what is the pH of NaNO3 what is the pH of HNO3 what is the pH of NH3(aq) what is the pH of (NH4)2CO3 what is the pH of CO2 what is the pH of KC2H3O2 what is the pH of HC2H3O2 what is the pH of KCL
State chemical equation for the formation of liquid pentanol : Write the balanced chemical equation for the formation of liquid pentanol, C5H12O, from the elements. Be sure to include the state subscripts.
Products it already received declared bankruptcy : Consider the following potential events that might have occurred to Global Conglomerate on December 30, 2009. For each one, indicate which line items in Global’s balance sheet would be affected and by how much. Also indicate the change to Global’s bo..
Explain what does the kinetic molecular theory of gases : What does the kinetic molecular theory of gases state about the average kinetic energy of the gas particles
What is the after - tax cost to the employer : Explain and calculate FBT liability. What is the after - tax cost to the employer of providing the benefits?
What is the volume flow rate through the tube : A stiff, 15cm -long tube with an inner diameter of 2.5mm is attached to a small hole in the side of a tall beaker. What is the volume flow rate through the tube
Why saturated sodium chloride is used to transfer crude : In the dehydration experiment, several ml of saturated sodium chloride is used to transfer crude product after the initial distillation. Why is saturated sodium chloride, rather than pure water, used for this experiment.

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the yield to maturity on these bonds

Rockinghouse Corp. plans to issue seven-year zero coupon bonds. It has learned that these bonds will sell today at a price of $351.70. Assuming annual coupon payments, what is the yield to maturity on these bonds?

  Computation of earnings per share

Analysis was forecasting fiscal 2003 and 2004 earnings per share for Cisco systems of $.54 and $.61 respectively. Cisco's shares traded at $15 at the time. Suppose the long-term growth rate will be at 4%.

  Who are the remaining general creditors

Who are the remaining general creditors? How much will each receive from distribution before surodination adjustments? What is the effect of adjusting for subordination?

  A qualified plan''s summary plan description (spd)

Determine the correct qualified plan's summary plan description (SPD).

  Which functional areas of the firm will be concerned

If management learns from the economic analysis of Country A that wage rates are expected to increase by 10 percent next year, which functional areas of the firm will be concerned? Why will this be of concern to management?

  What is the beta of your portfolio

Assume that you have $100,000 invested in a stock whose beta is .85, $200,000 invested in a stock whose beta is 1.05, and $300,000 invested in a stock whose beta is 1.25. What is the beta of your portfolio?

  Is the realized yield higher or lower than promised yield

Compute the realized rate of return for investors who purchased the bonds when they were issued and who surrender them today in exchange for the call price. Is the realized yield higher or lower than the promised yield?

  Computation of present value of cash flows

Computation of present value of cash flows and What is the present value of this cash stream

  What does the bank balance sheet look like

Newhart Financial starts its first day of operation with $10 million capital, and receives checking deposits worth of $200 million.

  What is the maturity of the bond

ABC Inc.has a bond outstanding which pays 8% coupon compounding semi-annually. The current market price of the bond is $1,196 and the yield to maturity of the bond is 6%. What is the maturity of the bond.

  Financial leverage for a utility company

Determine which factors would cause a difference in the use of financial leverage for a utility Corporation and an automobile Corporation?

  Calculate irr on investment

Jacob has an opportunity to invest in new retail development in his building. The initial investment is $50,000 & expected cash-flows are as follows: Year 1: $2,500 Year 2:

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd