Question 1 (25 points):

Superb Manufactures, Ltd. has got the following balance sheet:

Cash 1,2 8,8 Accounts Payable

Near-cash assets 2,4 2,1 Short-Term Debt

Accounts Receivable 9,2 14,6 Long-Term Debt

Inventories 3,6 5,2 Equity

Machinery 16,8

Accrued Deprec. -2,5

Total Net Assets 30,7 30,7 Total Liabilities

Please, calculate the Working Capital and the Working Capital Requirements too, and indicate if there is an excess of liquidity or a lack of liquidity.

Question 2 (15 points):

Mad Computers, Inc has got the following capital structure: A 441,6 M (million) bond issuance and several different loans that amount to 122,8 M, whose average interest rate is 8,24%. Additionally, it has got a 106,2 M preferred stock issuance that pays a fixed 9,2% coupon. And last, there is equity (capital + retained earnings) worth 97,1 M, whose required return is 16,4%. Please compute the WACC of Mad Computers if the company is subject to a 40% income tax bracket.

Question 3 (15 points):

Light Processors, Co. manufactures high-end laptops. The company has broken even when selling 46.618 units. If the fixed costs of the company were 6.874.212 and the average selling price per unit of the laptops had been 1.048, what must have been the variable cost per laptop?

Question 4 (30 points):

Fine Furniture, Inc. produces design furniture. The company has got the below statements. Please, calculate the Days of Sales Outstanding, the Days of Sales in Inventories, the Days of Payable Outstanding, and the complete Cash Conversion Cycle.

Balance Sheet 2.020 2.021

Cash 16 17

Accounts Receivable 220 327

Inventories 642 752

Gross Fixed Assets 1.400 1.769

Acc. Depreciation 200 350

Net Fixed Assets 1.200 1.419

Total Net Assets 2.078 2.515

Accounts Payable 602 712

Short-Term Debt 140 184

Long-Term Debt 586 792

Equity 750 827

Total Liabilities 2.078 2.515

P&L 2.020 2.021

Sales 2.200

COGS 1.150

Operating Expenditure 750

Depreciation 150

EBIT 150

Interests 21

EBT 129

Taxes 52

Net Income 77

Question 5 (15 points):

Spare Parts, Inc. has purchased 2.479.000 from its supplier. The supplier will be willing to grant a 1,20% discount provided Spare Parts, Inc. pays the full invoice within 10 days. The invoice will come due 60 days past. If the company waives the discount, what will the cost of such a loan be, on an annual basis? Use 360 days per year as the basis for the computation.