Here is a forecast of sales by National Bromide for the first 4 months of 2022 (figures in thousands of dollars): ? On average, 50% of credit sales are paid for in the
finance case study
# You should not copy from any website
# References must be written
# The assignment must be delivered on time
# The agreed number of words must be adhered to
# Give examples and write a perfect answer
# From 1200 words
Requirements: 1200
College of Administrative and Financial Sciences
Assignment 2
Corporate Finance (FIN201)
Deadline for students: (4/02/2023@ 23:59)
For Instructor?s Use only
Instructions ? PLEASE READ THEM CAREFULLY
This assignment is an individual assignment.
The Assignment must be submitted only in WORD format via the allocated folder.
Assignments submitted through email will not be accepted.
Students are advised to make their work clear and well presented. This also includes filling in your information on the cover page.
Students must mention question numbers clearly in their answers.
Late submitted assignments will NOT be entertained.
Avoid plagiarism; the work should be in your own words; copying from students or other resources without proper referencing will result in ZERO marks. No exceptions.
All answered must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism).
Submissions without this cover page will NOT be accepted.
Assignment Questions: (Marks: 15)
Q1. Here is a forecast of sales by National Bromide for the first 4 months of 2022 (figures in thousands of dollars):
?
On average, 50% of credit sales are paid for in the current month, 30% in the next month, and the remainder in the month after that. What are the expected cash collections in months 3 and 4??(Enter your answers in whole dollars not in thousands of dollars.) (5 Marks) (Ch 19)
Q2. Reactive Power Generation has the following capital structure. Its corporate tax rate is 21%.
?
What is its WACC??(Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) (3 Marks) (Ch 13)
Q3. Nodebt Inc. is a firm with all-equity financing. Its equity beta is 0.80. The Treasury bill rate is 4%, and the market risk premium is expected to be 10%.
?
a.?What is Nodebt?s asset beta??(1 Mark) (Ch 13)
b.?What is Nodebt?s WACC??(1 Mark) (Ch 13)
Q4. World Enterprises is determined to report earnings per share of $2.80. It therefore acquires the Wheelrim and Axle Company. There are no gains from merging. In exchange for Wheelrim and Axle shares, World Enterprises issues just enough of its own shares to ensure its $2.80 earnings per share objective.
Complete the table below for the merged firm. (Do not round intermediate calculations. Round “Price per share” and “Price-earnings ratio” to 2 decimal places and other answers to the nearest whole number.) (2 Marks) (Ch 21)
How many shares of World Enterprises are exchanged for each share of Wheelrim and Axle?
(1 Mark) (Ch 21)
What is the cost of the merger to World Enterprises? (1 Mark) (Ch 21)
What is the change in the total value of the World Enterprises shares that were outstanding before the merger? (1 Mark) (Ch 21)
Collepals.com Plagiarism Free Papers
Are you looking for custom essay writing service or even dissertation writing services? Just request for our write my paper service, and we'll match you with the best essay writer in your subject! With an exceptional team of professional academic experts in a wide range of subjects, we can guarantee you an unrivaled quality of custom-written papers.
Get ZERO PLAGIARISM, HUMAN WRITTEN ESSAYS
Why Hire Collepals.com writers to do your paper?
Quality- We are experienced and have access to ample research materials.
We write plagiarism Free Content
Confidential- We never share or sell your personal information to third parties.
Support-Chat with us today! We are always waiting to answer all your questions.
