Question: Asset Return Liabilities & Equity Return Asset A $10,000 ? Liability $1,000 8% Asset B 2,000 6% Equity A 2,000 4% Equity B 9,000 12%

Asset Return Liabilities & Equity Return Asset A $10,000 ? Liability $1,000 8% Asset B 2,000 6% Equity A 2,000 4% Equity B 9,000 12% Calculate the return on Asset A as the weighted average of the returns on the other financial instruments? 4 marks. What is the weight attached to Asset B? 2 marks. b. 8 marks Asset Return Liabilities & Equity Return Asset A $10,000 15% Liability $1,000 8% Asset B 2,000 6% Liability D (2,500) ? Equity B 13,500 13% Calculate the return on Liability D as the weighted average of the returns on the other financial instruments? 4 marks. What is the weight attached to Asset A? 2 marks. Is Liability D really a liability? Explain. 2 marks. 2. WK: working capital; RE: retained earnings; EBIT: operating income; MVE; market value of equity; TA: total assets. Consider the following financial statements of FCB company (albeit, truncated). Current assets $21,398 Current Liabilities $ 10,924 Total assets $37,074 Total liabilities $ 16,209 Retained earnings $ 15,998 EBIT $2,888 Number of shares outstanding 1,600 Price per share $ ?? Sales $ 14,072 Required: FCBs Z-score is 4.5. Find FCBs stock price per share. (6 marks)

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