TEST BANKS & SOLUTION MANUALS
LIST OF PRODUCTS
GUIDE
CONTACT US
Test Bank
Login / Register
0 items / $0.00
Menu
Test Bank testbank logo2
0 items / $0.00
  • Home
  • Health Professions
    • Nursing
    • Pharmacology/Surgical
    • Surgical Technology
    • Health and Disease
    • Blood Banking
    • Medical
    • Medicine
    • Emergency Care
    • Nutritional Care
    • Dental Materials
    • Cancer
    • Drug
  • Business & Management
    • Accounting
    • Marketing
    • Management
    • Statistics
    • Auditing
    • Business
    • Business Statistics
    • Banking
    • Financial
    • Financial Accounting
    • Personal Finance
    • Investment
    • Taxation of Business
  • Exams
    • Physical/Examination
  • Science & Technology
    • Biology
    • Chemistry
    • Biochemistry
    • Basic Chemistry
    • Environmental Science
    • Geography
    • Math
    • Psychology
    • Anatomy & Physiology
    • Astronomy
    • Information Technology
    • Microbiology/Biology
    • Neuropsychology
    • Pediatric Primary
    • Research Method
  • Engineering
    • Information Technology
    • Computing Technology
    • Data Analysis
    • Database
    • Web Design
    • Web Development
  • Humanities
    • Communication
    • Economics
    • Education
    • History
    • Sociology
    • Human Development
    • Human Physiology
    • Human Sexuality
    • Politics
    • Criminology
    • Criminal Justic
    • Art
    • Leadership
    • Learning
    • Legal Environment
    • Lifespan
    • Relationship
  • Blog
-43%
Financial Statement Analysis And Security Valuation 5th Edition By Stephen Test Bank
Click to enlarge
Home » Shop » Financial Statement Analysis And Security Valuation 5th Edition By Stephen – Test Bank
Introduction To Mechatronics And Measurement Systems 5Th Edition By David Alciatore – Test Bank
Introduction To Mechatronics And Measurement Systems 5Th Edition By David Alciatore – Test Bank $35.00 Original price was: $35.00.$20.00Current price is: $20.00.
Back to products
Understanding Financial Statements 11th Edition By Ormiston Frasier Test Bank
Understanding Financial Statements 11th Edition By Ormiston Frasier -Test Bank $35.00 Original price was: $35.00.$20.00Current price is: $20.00.

Financial Statement Analysis And Security Valuation 5th Edition By Stephen – Test Bank

$35.00 Original price was: $35.00.$20.00Current price is: $20.00.

Add to wishlist
Category: Financial
Share:
  • Description
  • Reviews (0)
  • Instant Delivery By Mail
Description

Financial Statement Analysis And Security Valuation 5th Edition By Stephen – Test Bank

Question 1 (6 points)

From the following information, calculate comprehensive income for fiscal year 2005. Amounts are in millions of dollars.

Common shareholders’ equity, May 31, 2004 450
Share issues (including $49 tax benefit 270
from employee stock options)
Share repurchases 27
Common dividends 17
Common shareholders’ equity, May 31, 2005 793

The firm’s statutory tax rate is 35%.

 

Comprehensive income (before option expense)

= ΔCSE + Net Payments to shareholders

= 343 + (27 + 17 – 270) = 117

Loss on exercise of options:

Before tax = 49 = 140
0.35
Tax benefit 49 91

Comprehensive income 26

Question 2 (12 points)

Below are some summary numbers for a firm for fiscal years 2004 and 2005 (in millions of dollars).

 

 

(c) Calculate return on common equity (ROCE), return on net operating assets (RNOA), and net borrowing cost (NBC) for the two years.

 

 

 

 

 

(d) How much of the change in ROCE over the two years is due to:

(I) Change in profit margin
(II) Change in asset turnover
(V) Change in financial leverage
(VI) Change in borrowing costs?

ROCE2005 = 31.36% = 15.60% + 1.303 [15.60% – 3.5%]

ROCE2004 = 22.89% = 17.50% + 0.400 [17.5% – 4.0%]

Change = 8.47% = –1.9% 0.903 –1.4%

2004 2005
PM 7.0% 6.0%
ATO 2.5% 2.6%
FLEV 0.400 1.303

ΔROCE = ΔRNOA + (ΔSPREAD + FLEV2004) + (ΔFLEV +SPREAD2005)

= –1.9% + (–1.4% x 0.400) + (0.903 x 12.1%)

= –1.9% – 0.56% + 10.93%

= 8.47%

ΔRNOA = (ΔPM x ATO2004) + (ΔATO x PM2005)

= (–1.0% x 2.5) + (0.1 x 6.0%)

= –2.5% + 0.6%

= –1.9%

(I) –2.5%
(II) 0.6%
(III) 10.93%
(IV) Change due to change in SPREAD = – 0.56%

Change due to change in NBC = 0.400 x 0.5%

= 0.2%

[If RNOA had not changed, change due to change in SPREAD would have been 0.2%]

Question 3 (16 points)

The following are summary income statement and balance sheet numbers for a firm (in millions of dollars). The firm has a required return for operations of 9%.

 

(d) Prepare a table on the next page giving the following for 2003- 2005. Use beginning-of-period balance sheet numbers in denominators.

 Return on common equity (ROCE)
 Return on net operating assets (RNOA)
 Core return on net operating assets (Core RNOA)
 Free cash flow
 Net payments to common shareholders
 Net payments to net debt holders
 Asset turnover
 Core profit margin
 Growth rate for net operating assets

2003 2004 2005
ROCE 16.48% 11.11% 23.73%
RNOA 14.71% 10.17% 20.55%
Core RNOA 14.71% 14.75% 14.68%

OI – ΔNOA = FCF 101 61 169

CI – ΔCSE = Net dividend (d) 98 73 105

F = FCF – d 3 (12) 64

ATO 2.1 2.1 2.1

Core PM 7.0% 7.0% 7.0%

g (NOA) 4.02% 4.0% 4.0%

 

Reviews (0)

Reviews

There are no reviews yet.

Be the first to review “Financial Statement Analysis And Security Valuation 5th Edition By Stephen – Test Bank” Cancel reply

Your email address will not be published. Required fields are marked *

Instant Delivery By Mail

Related products

-43%
Financial Management Theory And Practice 15th Edition By Brigham – Test Bank
Quick view
Add to wishlist
Add to cart

Financial Management Theory And Practice 15th Edition By Brigham – Test Bank

$35.00 Original price was: $35.00.$20.00Current price is: $20.00.
-43%
Financial Markets And Institutions 11th Edition By Jeff Madura Test Bank
Quick view
Add to wishlist
Add to cart

Financial Markets And Institutions 11th Edition By Jeff Madura – Test Bank

$35.00 Original price was: $35.00.$20.00Current price is: $20.00.
-43%
Financial Reporting 1st Edition By Loftus Leo – Test Bank
Quick view
Add to wishlist
Add to cart

Financial Reporting 1st Edition By Loftus, Leo – Test Bank

$35.00 Original price was: $35.00.$20.00Current price is: $20.00.
-43%
Financial Institutions Management A Risk Management Approach 9th Edition By Saunders – Test Bank
Quick view
Add to wishlist
Add to cart

Financial Institutions Management A Risk Management Approach 9th Edition By Saunders – Test Bank

$35.00 Original price was: $35.00.$20.00Current price is: $20.00.
-43%
Financial Institutions Instruments And Markets 9th Edition By Christopher Viney – Test Bank
Quick view
Add to wishlist
Add to cart

Financial Institutions Instruments And Markets 9th Edition By Christopher Viney – Test Bank

$35.00 Original price was: $35.00.$20.00Current price is: $20.00.
-43%
Financial Institutions Management 5th Canadian Edition By Marcia Cornett – Test Bank
Quick view
Add to wishlist
Add to cart

Financial Institutions Management 5th Canadian Edition By Marcia Cornett – Test Bank

$35.00 Original price was: $35.00.$20.00Current price is: $20.00.
-43%
Financial Management Principles And Applications, 13th Edition By Titman, keown & Martin Test Bank
Quick view
Add to wishlist
Add to cart

Financial Management Principles And Applications, 13th Edition By Titman, keown & Martin – Test Bank

$35.00 Original price was: $35.00.$20.00Current price is: $20.00.
-43%
Understanding Financial Statements 11th Edition By Ormiston Frasier Test Bank
Quick view
Add to wishlist
Add to cart

Understanding Financial Statements 11th Edition By Ormiston Frasier -Test Bank

$35.00 Original price was: $35.00.$20.00Current price is: $20.00.
Test Bank
  • 3277 S WHITE RD SAN JOSE, CA 95148
  • Phone: (064) 332-1233
  • admin@testbank.ltd
MAIN
  • Home
  • Blog
  • Guide
  • FAQs
  • Contact us
  • Account
Categories
  • Test Banks & Solutions
  • List of Products
  • Nursing Test Bank
  • Accounting Test Bank
  • Exams Test Bank
  • Surgical Test Bank
NEED HELP?
  • Privacy Policy
  • Refund & Returns
  • Terms And Conditions
  • Shipping Policy
  • Billing Term Conditions
  • Submit your Request
NEW REQUEST

We have the biggest collection of authentic Test Banks with many more being uploaded every day so if you can’t find your desired Test Bank or Solution Manual then please Submit Request and we will send it to your inbox.

Test Bank 2023 All Right Reserved
payments
  • Home
  • Health Professions
    • Nursing
    • Pharmacology/Surgical
    • Surgical Technology
    • Health and Disease
    • Blood Banking
    • Medical
    • Medicine
    • Emergency Care
    • Nutritional Care
    • Dental Materials
    • Cancer
    • Drug
  • Business & Management
    • Accounting
    • Marketing
    • Management
    • Statistics
    • Auditing
    • Business
    • Business Statistics
    • Banking
    • Financial
    • Financial Accounting
    • Personal Finance
    • Investment
    • Taxation of Business
  • Exams
    • Physical/Examination
  • Science & Technology
    • Biology
    • Chemistry
    • Biochemistry
    • Basic Chemistry
    • Environmental Science
    • Geography
    • Math
    • Psychology
    • Anatomy & Physiology
    • Astronomy
    • Information Technology
    • Microbiology/Biology
    • Neuropsychology
    • Pediatric Primary
    • Research Method
  • Engineering
    • Information Technology
    • Computing Technology
    • Data Analysis
    • Database
    • Web Design
    • Web Development
  • Humanities
    • Communication
    • Economics
    • Education
    • History
    • Sociology
    • Human Development
    • Human Physiology
    • Human Sexuality
    • Politics
    • Criminology
    • Criminal Justic
    • Art
    • Leadership
    • Learning
    • Legal Environment
    • Lifespan
    • Relationship
  • Blog
  • Wishlist
  • Login / Register
Shopping cart
close

Sign in

close

Lost your password?

No account yet?

Create an Account
Start typing to see products you are looking for.
Shop
Wishlist
0 items Cart
My account