You are the new CFO of Risk Surfing Ltd, which has current assets of $7,920, net fixed assets of $17,700, current liabilities of $4,580 and long-term debts of $5,890.

a. What are the three important questions of corporate finance you will need to address? Please briefly explain them and indicate how they are related to the areas in the balance sheet of a company.

b. Calculate owners’ equity and build a balance sheet for the company?

c. How much is the networking capital of the company?

d. Calculate the return on assets of the company given that Return on Equity is 30%?

e. What is the PE of the company total number of ordinary shares outstanding of the companies is 2,000 and the market price of each share is $12?

Answer rating: 100% (QA)

a The three questions of corporate finance are 1 What longterm investments should the firm undertake ... View the full answer