In the previous problem, suppose the firm was operating at only 80 percent capacity in 2009. What is EFN now?
Answer to relevant QuestionsIn Problem 21, suppose the firm wishes to keep its debt-equity ratio constant. What is EFN now? Y3K, Inc., has sales of $4,350, total assets of $3,218, and a debtequity ratio of 0.65. If its return on equity is 15 percent, what is its net income? Cheryl Colby, CFO of Charming Florist Ltd., has created the firm’s pro forma balance sheet for the next fiscal year. Sales are projected to grow by 15 percent to $317.4 million. Current assets, fixed assets, and short-term ...Suppose an investment offers to quintuple your money in 12 months (don’t believe it). What rate of return per quarter are you being offered? Given an interest rate of 8.2 percent per year, what is the value at date t = 7 of a perpetual stream of $2,100 payments that begin at date t = 15?
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