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

2)Calculate Cash flow to creditor, Cashflow to stock holder, Cash flow from the assets for the company in the last three years (2018-2020) based on company financial statement published in its website? Comments about the results

3)Assume that risk free rate was 5%, market risk premium was 4.6%, calculate required return of company’s common stock (hint: looking for company’s beta, remember cite the source of data and using CAPM model for calculation)
 
 

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BALANCE SHEET ASSET SHORT TERM ASSET Cash And Cash Equivalents Short Term Financial Investment Short Term Receivables Inventory Other Current Asset LONG TERM ASSET Long Term Asset Receivables Fixed Asset Investment Real Estate Long Term Unfinished Asset Long Term Financial Investment Other Long Term Asset TOTAL ASSETS LIABILITIES Short Term Debt Long Term Debt EQUITIY Owner's Equity TOTAL LIABILITIES AND EQUITY 2018 2019 2020 3.989.369 4.971.363 4.496.050 645.474 291.674 963.717 720.906 1.251.822 758.601 1.612.785 2.079.278 1.669.170 862.749 1.221.502 946.809 147.453 127.084 157.754 3.539.797 3.016.090 4.073.363 21.384 96.367 173.91 2.198.807 2.081.103 2.325.026 222.816 447.748 1.208.008 293.779 361.23 48.38 123.559 488.178 63.216 198.463 277.269 7.529.166 7.987.454 8.569.414 4.548.916 4.732.215 4.545.451 3.206.103 3.236.645 3.772.834 1.342.813 1.495.570 722.617 2.980.250 3.255.238 4.023.962 2.980.250 3.255.238 4.023.962 7.529.166 7.987.454 8.569.414 BILLION BALANCE SHEET ASSET SHORT TERM ASSET Cash And Cash Equivalents Short Term Financial Investment Short Term Receivables Inventory Other Current Asset LONG TERM ASSET Long Term Asset Receivables Fixed Asset Investment Real Estate Long Term Unfinished Asset Long Term Financial Investment Other Long Term Asset TOTAL ASSETS LIABILITIES Short Term Debt Long Term Debt EQUITIY Owner's Equity TOTAL LIABILITIES AND EQUITY 2018 2019 2020 3.989.369 4.971.363 4.496.050 645.474 291.674 963.717 720.906 1.251.822 758.601 1.612.785 2.079.278 1.669.170 862.749 1.221.502 946.809 147.453 127.084 157.754 3.539.797 3.016.090 4.073.363 21.384 96.367 173.91 2.198.807 2.081.103 2.325.026 222.816 447.748 1.208.008 293.779 361.23 48.38 123.559 488.178 63.216 198.463 277.269 7.529.166 7.987.454 8.569.414 4.548.916 4.732.215 4.545.451 3.206.103 3.236.645 3.772.834 1.342.813 1.495.570 722.617 2.980.250 3.255.238 4.023.962 2.980.250 3.255.238 4.023.962 7.529.166 7.987.454 8.569.414 BILLION

Answer rating: 100% (QA)

Question 1 Following are the three important question of corporate finance 1 Capital Structure How to achieve optimum capital structure right mix of debt and equity and financing long term debt 2 Capi... View the full answer