Need help with my FIN 335 Finance Final Exam

Question - FINAL EXAM - FIN 355For Problems 1 through 13, refer to Exhibit 1. (For your answer, enter the selected stock ticker symbol.)Questions continue on Exhibit 1.1Which company has the highest gross margins?2Which company has the lowest gross margins?3Which company has the highest net margins?4Which company has the lowest net margins?5Which company has the highest returns to shareholders?6Which company has the lowest returns to shareholders? 7Which company has the highest returns on invested capital?8Which company has the lowest returns on invested capital?9Which company provides the greatest wealth generation to its shareholders? 10Provide a SHORT answer to support why you selected your answer in Question 9.11Do any of the companies have potent ...Read More ially dangerous levels of liquidity? Y >N >Support your answer:12All four of these companies are mature, growing at an annualized 3% rate, except for ECL. It is expected to grow at an annualized rate of 15% for 3 years, 10% for 4 more years, and 8% for 4 years, until it achieves maturity and grows at an assumed rate of 3%. Based on these assumptions, what is the estimated value of the common stock (per share)?13ECL has decided to recapitalize by issuing $2 billion in new debt and using the proceeds to purchase its shares in the open market. Assuming that the average purchase price will be $110 per share, what will the effect of the recapitalization be on per share price of the common?14For this problem, refer to Exhibit 2. Based on IRR and NPV, which projects would be selected, assuming an investment budget of $2,500,000? 12345vvvvvNPVIRRSelected projects:

COMPARATIVE INCOME STATEMENTCOMPARATIVE BALANCE SHEETHUNECLDDLY BHUNECLDDLY BPeriod Ending31-Dec-1231-Dec-1231-Dec-1231-Dec-12Period Ending31-Dec-1231-Dec-1231-Dec-1231-Dec-12To t a l R e v e n u e1,11,87,0001,18,38,7003,48,12,0004,53,52,000 Cost of Revenue 91,53,00064,83,5002,56,04,0003,95,95,000AssetsCurrent Assets Gross Profit 20,34,00053,55,20092,08,00057,57,000Cash And Cash Equivalents 396,000 1,157,800 4,284,000 2,737,000 Short Term Investments - - 123,000 - Operating Expenses Net Receivables 1,634,000 2,430,300 6,102,000 3,904,000 Research & Development 152,000 -00 2,067,000 172,000 Inventory 1,819,000 1,088,100 7,422,000 5,075,000 Selling Gen'l and Admin 945,000 3,920,200 4,060,000 909,000 Other Current Assets 270,000 215,800 3,260,000 570,000 Non Recurring 92,000 145,700 -00 -00 To t a l C u r r e n t A s s e t s 4,119,000 4,892,000 21,191,000 12,286,000 Others -00 -00 -00 -00 Long Term Investments 240,000 -00 1,163,000 2,363,000 Total Operating Expenses -00 -00 -00 -00 Property Plant and Equipment 3,745,000 2,409,100 12,741,000 7,696,000 Operating Income or Loss 845,000 1,289,300 3,081,000 4,676,000 Goodwill 117,000 5,920,500 4,616,000 591,000 Intangible Assets 68,000 4,044,100 5,126,000 1,038,000 Income from Continuing Operations Accumulated Amortization -00 -00 -00 -00 Total Other Income/Expenses Net 3,000 -00 498,000 164,000 Other Assets 366,000 306,600 960,000 246,000 EBIT 848,000 1,289,300 3,579,000 4,840,000 Deferred Long Term Asset Charges 229,000 -00 3,939,000 -00 Interest Expense 226,000 276,700 464,000 655,000 Income Before Tax 622,000 1,012,600 3,115,000 4,185,000 To t a l A s s e t s 8,884,000 17,572,300 49,736,000 24,220,000 Income Tax Expense 169,000 311,300 622,000 1,327,000 Minority Interest (10,000) 2,300 (25,000) 14,000 Liabilities Net Income From Continuing Ops 463,000 699,000 2,518,000 2,844,000 Current Liabilities Non-recurring Events -00 -00 -00 -00 A c c o u n t s Pa y a b l e 1,893,000 1,475,900 11,190,000 5,000,000 Discontinued Operations (7,000) -00 320,000 (24,000) Short/Current Long Term Debt 288,000 805,800 1,275,000 96,000 Extraordinary Items -00 -00 -00 -00 Other Current Liabilities -00 771,000 1,084,000 -00 Effect Of Accounting Changes -00 -00 -00 -00 To t a l C u r r e n t L i a b i l i t i e s 2,181,000 3,052,700 13,549,000 5,096,000 Other Items -00 -00 -00 -00 Long Term Debt 3,414,000 5,736,100 10,465,000 4,304,000 NOPAT 395,000 699,000 2,198,000 2,868,000 Other Liabilities 1,165,000 2,623,400 14,687,000 2,327,000 Deferred Long Term Liability Charges 228,000 -00 856,000 1,314,000 Marginal Tax Rate:27.17%30.74%19.97%31.71%Minority Interest 123,000 83,100 91,000 40,000 15161718Negative Goodwill -00 -00 -00 -00 vvvvMarket Cap (in 1,000's):To t a l L i a b i l i t i e s 4,930,000 8,442,600 26,099,000 7,985,000 EPS:^^^^Stockholders' Equity19202122Misc Stocks Options Warrants -00 -00 -00 -00 Redeemable Preferred Stock -00 -00 -00 -00 Beta2.380.761.562.34Preferred Stock -00 -00 237,000 -00 Kd5.01%0.95%4.23%17.50%Common Stock 2,000 342,100 306,000 31,000 Rf1.25%1.25%1.25%1.25%Retained Earnings (687,000) 4,020,600 14,286,000 1,274,000 Rm8.50%8.50%8.50%8.50%Treasury Stock (50,000) (2,075,100) (6,727,000) (106,000) Capital Surplus 3,264,000 4,249,100 10,632,000 10,351,000 23242526Other Stockholder Equity (756,000) (459,700) (8,646,000) (411,000) vvvvKeTotal Stockholder Equity 1,773,000 6,077,000 10,088,000 11,139,000 WA C C^^^^Total Liabilities & Stockholders Equity 8,884,000 17,572,300 49,736,000 24,220,000 27282930Common shares outstanding (1,000's): 258,170 290,041 737,584 577,062 Pr/ShareUS$ 23.13US$ 106.36US$ 61.02US$ 75.30

CAPITAL BUDGETINGDISCOUNT FACTOR:9.25%ALL AMOUNTS IN $1,000'SCASH FLOWS V PROJECT 1 PROJECT 2 PROJECT 3 PROJECT 4 PROJECT 5 PROJECT 6YEAR 0 US$ (1,000.00) US$ (1,750.00) US$ (2,000.00) US$ (1,500.00) US$ (1,250.00) US$ (750.00)YEAR 1 US$ (250.00) US$ (1,000.00) US$ (250.00) US$ 250.00 US$ (500.00) US$ (1,200.00)YEAR 2 US$ -00 US$ -00 US$ (100.00) US$ 250.00 US$ (250.00) US$ 100.00 YEAR 3 US$ 650.00 US$ -00 US$ -00 US$ 250.00 US$ -00 US$ 100.00 YEAR 4 US$ 500.00 US$ -00 US$ 250.00 US$ 250.00 US$ 1,000.00 US$ 100.00 YEAR 5 US$ 1,000.00 US$ -00 US$ 500.00 US$ 250.00 US$ 1,000.00 US$ 100.00 YEAR 6 US$ -00 US$ 600.00 US$ 250.00 US$ 250.00 US$ 100.00 YEAR 7 US$ 3,500.00 US$ 500.00 US$ 250.00 US$ 1,500.00 US$ 100.00 YEAR 8 US$ 750.00 US$ 250.00 US$ 500.00 YEAR 9 US$ 500.00 US$ 100.00 US$ 500.00 YEAR 10 US$ 3,500.00 US$ 100.00 US$ 1,000.00 ...Read Less

Solution Preview - er to Exhibit 1. (For your answer, enter the selected stock ticker symbol.)Questions continue on Exhibit 1.1Which company has the highest gross margins?ECL2Which company has the lowest gross margins?LY B :3Which company has the highest net margins?LY B4Which company has the lowest net margins?HUN5Which company has the highest returns to shareholder

Original Question Documents

N/A