What is the balance sheet identity formula

Assignment Help Corporate Finance

Reference no: EM133397698

Questions:

Question 1. Project the income statement for Bluerock for the year 2017 using the scenarios listed above.

Question 2. There are 5 categories of ratios covered in the first part of the semester. Please name and explain each category and calculate and interpret at least 3 ratios from each.

Question 3. Create a common-size Income statement for each scenario
4. Please give a definition for each financial statement presented above:
a. What is an income statement?
b. What is a balance sheet? What is the Balance Sheet Identity formula? Explain the relationship between both sides of the equation

Part II

Question 1. A firm has common stock of $6,200, paid-in surplus of $9,100, total liabilities of $8,400, current assets of $5,900, and fixed assets of $21,200. What is the amount of the shareholders' equity? Please explain the steps taken.

Question 2. Russell's Deli has cash of $136, accounts receivable of $95, accounts payable of $210, and inventory of $409. What is the value of the quickratio?And explain what it is used for?

Question 3. What is the change in the net working capital (NWC) from 2010 to 2011? Explain what is NWC?

Question 4. Which one of the following terms is applied to the financial planning method which uses the projected sales level as the basis for determining changes in balance sheet and income statement account values?(Explain your choice)

A. percentage of sales method
B. sales dilution method
C. sales reconciliation method
D. common-size method
E. trend method

Question 5. Which one of the following standardizes items on the income statement and balance sheet relative to their values as of a chosen point in time?(Explain)

A. statement of standardization
B. statement of cash flows
C. common-base year statement
D. common-size statement
E. base reconciliation statement

Question 6. A firm has net working capital of $2,715, net fixed assets of $22,407, sales of $31,350, and current liabilities of $3,908. How many dollars' worth of sales are generated from every $1 in total assets?

Question 7. How many days of sales are receivable? (Use 2012 values)

Question 8. Risk Free =3%, Beta=1.2, Expected Return on the market=7%. Calculate CAPM.

Question 9. Assume newly formed Corporation XZF needs to raise $1 million in capital so it can buy office buildings and the equipment needed to conduct its business. The cost of equity is 6% and the cost of debt is 5%.

Question 10. Corporation XZF's total market value is now $600,000 equity and $400,000 debt and its corporate tax rate is 35%. Please calculate the WACC.

Question 11. The most utilized method to find the valuation of a company is the Discounted Cash Flow ("DCF") method. Please list the steps needed to complete a "DCF" model. Please be specific in each step; teach me the concept.

Reference no: EM133397698

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