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updated 22.3.01
1. Why stock price value dividens
better than earnings and how this
relates to cash?
2.
a) compare LIFO vs. FIFO under
inflation
b) what does mean "net debtors gain
under inflation"?
3. Calculate ROE, ROA, ROIC
4. A case company. Explain liguidity,
leverage and calculta appropriate
ratios from balance sheet.
updated 6.8.2000:
1. a) What are the main problems of ROE as financial yardstick?
b) WYZ corporation earns 12% profit margin on the sale of high tech
electronic calibrators. The manager of the calibrator division strongly
opposes introduction of new massmarket calibrators, becauseits anticipated
profit margin is only 6%. She argues that the new calibrator can only lower
returns. Is that a valid argument or not? Why or why not?
2. Sources and uses of cash (10 pcs. just to know which are uses and which
sources, they were listed in the tent paper)
3. Discuss the measures of financial leverage. Explain what different classes
of measures there exist. In each class give an example of an appropreate
measure.
4. Company has following financial statement and balance sheet:
sales 22,9
expenses -14,9
depreciation - 1,2
operation income 7,5
other expenses - 0,9
taxes -0,2
net result 6,4
owner equity 14,5
Liabilities 25,5
a) What is free cash flow from operations if current assets increases 4 and and
liabilities decreases 0,4?
b) Retention level is 40%. Company invests 1,0. The rest company uses for loan
repayment. What is the change in leverage?
1. Why stock price value dividens
better than earnings and how this
relates to cash?
2.
a) compare LIFO vs. FIFO under
inflation
b) what does mean "net debtors gain
under inflation"?
3. Calculate ROE, ROA, ROIC
4. A case company. Explain liguidity,
leverage and calculta appropriate
ratios from balance sheet.
updated 22.5.2000:
1. What is ROA ?
2. Inputed Costs ? Market Value ?
3. Measures of financial leverage
4. What a company can do under financial stress ?