Corporate Finance

Topic:

Question 1: Balance sheet of vinamilk company

a) Calculating net working capital?

b) Calculating current ratio?

c) Calculating quick asset (acid test) ratio?

d) Assessing the financial condition of Vinamilk company when the industry average is: Current ratio = 1.28 and quick asset ratio= 1.07

Question 2: Scheduled amortization payments equal to at the end of each year for 10 years with 10% interest rate and a loan as a quarter of 5 million USD?

Question 3: case study :

a) Calculating expected rate of return, standard deviation and coefficient of variation for investment opportunities of MAQ Motors?

b) Analysis of the stock price of Wahid advice company in case Mr Son have required a 16% rate of return for investing in these stocks, the level of risk?

c) Identifing which shares of Zahoor company have higher real price, in the case Mr Son wants profit per share by 9%

d) Calculating the dividend yield of a common share of Ideal contractors by using two model: zero growth pricing and constant growth pricing with g=10% and compare the result?

Answers

Question 1:

1. Calculating net working capital:

VLĐr = Current assets– current liabilities= 233.000 – 176.000 = 57.000 ($)

2. Current ratio:[pic]

3. Quick assets( acid test) ratio:

[pic]

4. Liquidity ability of Vinamilk:

- when the industry average of current ratio is: 1.28 < 1.32 .With current ratio, the higher the better. So the ability to convert the property into money of VINAMILK is good, Short-term debt is secured by the payment of current assets.

- when the industry average of quick assets ratio is: 1.07 > 0.64.With this ratio, the higher the better. So that, inventory of Vinamilk have been higher than the industry average. Ability to repay short-term debt and short-term assets except inventory is low compared with peers.

Question 2:...