User Account

All Pages

What was joe''s net worth at the end of 2013

Assignment Help Finance Basics
Reference no: EM13907643

1. What was Joe's NOPAT in 2013?

2. What was Joe's Free Cash Flow (FCF) in 2013? (Note: For this question, assume Joe obtained no new plant and equipment or additional net working capital in 2013. Thus his Net Investment in Operating Capital (NIOC) for 2013 is $0.00.)

3. Suppose you were an investor and you were considering whether to buy a corporate bond from Joe's Corporation or a Municipal Bond from the city of St. Louis. Joe's corporate bond has a yield of 7%. The St Louis city bond has a yield of 5%. The income from Joe's bond is taxable. The income from the St Louis city bond is tax-free. If your effective tax rate is 30%, which bond would give you the higher after-tax yield?

4. What was Joe's Net Worth at the end of 2013?

5. Why is the market value of a firm's stock almost always higher than the book value of the firm's stock as shown on the balance sheet?

6. a. Calculate Joe's ROE for 2013.

b Construct a Du Pont equation (use the extended, or modified version shown in the Week 1, chapters 2 & 3 lesson notes) and comment on the sources of Joe's ROE as revealed by the equation.

Joe's Fly-by-Night Oil
INCOME STATEMENT, 2013  BALANCE SHEET, as of Dec 31, 2013 
Sales $10,000 ASSETS
Cost of goods sold $4 Cash $5,000
Gross profit $6,000 Accounts receivable 3,000
S, G & A expenses $3 Inventory $17
EBIT $3,000 Current assets $25,000
Interest $200 Equipment (gross) 27,000
Before-tax earnings $2,800 Less Accum Depreciation ($12)
Taxes 1 Equipment (net) $15,000
Net income 1 800 Total assets $40,000


LIABILITIES AND EQUITY
EPS $1.80 Accounts payable $17,000


Current liabilities $17,000
Dtidends $600 Long-term debt $3,000
Addition to retained earnings $1,200 Total liabilities $20,000


Common stock (1,000 shares) $7,000


Retained earnings $13,000


Total equity $20,000


Total liabilities & Equity $40,000

Reference no: EM13907643

Questions Cloud

Create a sum swamp game in visual basic : Create a Sum Swamp game in visual basic.
What option available to s corporation for accounting period : What options are available to an S Corporation for accounting period choices and accounting methods? Why would you select one versus other alternatives?
Find the ratio of sarahs age to keishas age : The ratio of Sarah's age to Keisha's age is 4:5 this year. Keisha was 12 years old 3 years ago. Find the ratio of Sarah's age to Keisha's age 9 years from now
What industries do think will have higher financial slack : There are some companies out there that feel like the end is near so pay out a bunch of returns to investors in panic which is essence is financial slack. Do you think that the SEC can force them to pay that back?
What was joe''s net worth at the end of 2013 : Why is the market value of a firm's stock almost always higher than the book value of the firm's stock as shown on the balance sheet?
What are the sales objectives for new sales representative : What are the sales objectives for the new sales representative? What role will the compensation design play in motivating the new sales representative? What kind of sales incentive plan do you recommend? Why
What other dbms constructs came after relational databases? : What other DBMS constructs came after relational databases?
Kenya company standard cost accounting system recorded : Kenya Company's standard cost accounting system recorded this information from its June operations.
Compute the sum of the first : Assume there is a variable , h already associated with a positive integer value. Write the code necessary to compute the sum of the first h perfect squares, starting with 1 .

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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