Anonymous
Jan 29
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ChatGPT
Jan 29
1) Communication: ICT allows us to communicate with others easily and instantly. We can send emails, make phone calls, or use messaging apps to stay connected with friends, family, and colleagues. This has revolutionized the way we interact and has made communication more efficient and convenient.
2) Information access: With ICT, we have access to a vast amount of information at our fingertips. Through the internet, we can search for any topic, read news articles, watch videos, or listen to podcasts. This has democratized knowledge and made it easier for us to stay informed and learn new things.
3) Entertainment: ICT has transformed the way we entertain ourselves. We can stream movies and TV shows, listen to music, play video games, or engage in social media platforms. These digital entertainment options provide us with endless choices and allow us to relax and unwind in our daily lives.
4) Productivity and efficiency: ICT tools such as computers, software applications, and mobile devices have greatly enhanced our productivity. We can create documents, spreadsheets, and presentations, manage our schedules, and collaborate with others on projects. These tools automate tasks, streamline workflows, and enable us to work more efficiently, saving time and effort.
2) Information access: With ICT, we have access to a vast amount of information at our fingertips. Through the internet, we can search for any topic, read news articles, watch videos, or listen to podcasts. This has democratized knowledge and made it easier for us to stay informed and learn new things.
3) Entertainment: ICT has transformed the way we entertain ourselves. We can stream movies and TV shows, listen to music, play video games, or engage in social media platforms. These digital entertainment options provide us with endless choices and allow us to relax and unwind in our daily lives.
4) Productivity and efficiency: ICT tools such as computers, software applications, and mobile devices have greatly enhanced our productivity. We can create documents, spreadsheets, and presentations, manage our schedules, and collaborate with others on projects. These tools automate tasks, streamline workflows, and enable us to work more efficiently, saving time and effort.
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Hugo Micua
Jan 29
The four uses of ICT is communication, information, entertainment, productivity and also efficiency.
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Abdii Dina656
Jan 29
Assignment I
Complete the balance sheet and sales information in the table that follows for Harar
Industries using the following financial data:
Debt ratio: 50%
Quick ratio: 0.80
Total assets turnover: 1.5
Days Sales Outstanding: 36.5 days
Gross profit margin on sales: 25%
Inventory turnover ratio: 5.0
Calculation is based on a 365-day year.
Balance Sheet
Cash ________________ Accounts payable __________
Accounts receivable __________ Long-term debt 60,000
Inventories __________ Common stock __________
Fixed assets __________ Retained earnings 97,500
Total assets $300,000 Total liabilities and equity __________
Sales __________ Cost of goods sold __________
2. The following data apply to SHEGER and Associates (millions of dollars):
Cash and marketable securities $ 100.00
Fixed assets $ 283.50
Sales $1,000.00
Net income $ 50.00
Quick ratio 2.0
Current ratio 3.0
DSO 40.55 days
ROE 12%
SHEGER has no preferred stock—only common equity, current liabilities, and long-term debt.
A. Find SHEGER’s
(1) Accounts receivable,
(2) Current liabilities,
(3) Current assets,
(4) Total assets,
(5) ROA,
(6) Common equity,
(7) Long-term debt.
B. In part a, you should have found SHEGER’s accounts receivable = $111.1 million. If SHEGER could reduce its DSO from 40.55 days to 30.4 days while holding other things constant, how much cash would it generate? If this cash were used to buy back common stock (at book value), thus reducing the amount of common equity, how would this affect (1) the ROE, (2) the ROA, and (3) the ratio of total debt to total assets?
3. Data for ABC Chip Company and its industry averages is follows.
a. Calculate the indicated ratios for ABC.
c. Outline ABC’s strengths and weaknesses as revealed by your analysis.
ABC Chip Company: Balance Sheet as of December 31, 2010(Thousands of Dollars)
Cash $ 77,500 Accounts payable $129,000
Receivables 336,000 Notes payable 84,000
Inventories 241,500 Other current liabilities 117,000
Total current assets $655,000 Total current liabilities $330,000
Net fixed assets 292,500 Long-term debt 256,500
Common equity 361,000
Total assets $947,500 Total liabilities and equity $947,500
ABC Chip Company: Income Statement for Year Ended December 31, 2010 (Thousands of Dollars)
Sales $1,607,500
Cost of goods sold 1,392,500
Selling, general, and administrative expenses 145,000
Earnings before interest and taxes (EBIT) $ 70,000
Interest expense 24,500
Earnings before taxes (EBT) $ 45,500
Federal and state income taxes (40%) 18,200
Net income $ 27,300
Ratio ABCIndustry Average
Current ratio 2.0
Account receivable collection 35.0 days
Sales/Inventory 6.7
Sales/Fixed assets 12.1
Sales/Total assets 3.0
Net income/Sales 1.2%
Net income/Total assets 3.6%
Net income/Common equity 9.0%
Total debt/Total assets 60.0
Calculation is based on a 360-day year.
Assume that ABC Company sells an issue of common stock to potential investors in the country. The selling price per common share of the bank is 2000 Birr. The company incurs a selling (flotation) cost of 10 Birr per share. The current dividend of the bank’s common share is 200 Birr per share and it is expected to grow a 5% annual compound rate.
Required;
A) Compute the specific cost of capital of Common stock
B) Compute the specific cost of capital of Retained earnings
Biftu Company’s balance sheet on the right hand side shows the following capital component data,
Source Of Capital
Book Value
Specific Cost Of Capital
10% bond ,1000 br. par value
60,000 br.
0.05
Preferred stock,
62,500 outstanding
500,000
0.095
Common stock, 1,000,000 br. shares outstanding
10,000,000
0.12
Retained earning
4,000,000
0.11
Based on the information Compute the weighted average cost of capital by using the book value weighted method
On the above question number 3, financial manager collected data about the market price of each capital component and reported that the bond currently are quoted at 94 birr, preferred stock is selling for 90 birr per share, and the common stock currently sells for birr 18 per share. Compute WACC using market value method.
Complete the balance sheet and sales information in the table that follows for Harar
Industries using the following financial data:
Debt ratio: 50%
Quick ratio: 0.80
Total assets turnover: 1.5
Days Sales Outstanding: 36.5 days
Gross profit margin on sales: 25%
Inventory turnover ratio: 5.0
Calculation is based on a 365-day year.
Balance Sheet
Cash ________________ Accounts payable __________
Accounts receivable __________ Long-term debt 60,000
Inventories __________ Common stock __________
Fixed assets __________ Retained earnings 97,500
Total assets $300,000 Total liabilities and equity __________
Sales __________ Cost of goods sold __________
2. The following data apply to SHEGER and Associates (millions of dollars):
Cash and marketable securities $ 100.00
Fixed assets $ 283.50
Sales $1,000.00
Net income $ 50.00
Quick ratio 2.0
Current ratio 3.0
DSO 40.55 days
ROE 12%
SHEGER has no preferred stock—only common equity, current liabilities, and long-term debt.
A. Find SHEGER’s
(1) Accounts receivable,
(2) Current liabilities,
(3) Current assets,
(4) Total assets,
(5) ROA,
(6) Common equity,
(7) Long-term debt.
B. In part a, you should have found SHEGER’s accounts receivable = $111.1 million. If SHEGER could reduce its DSO from 40.55 days to 30.4 days while holding other things constant, how much cash would it generate? If this cash were used to buy back common stock (at book value), thus reducing the amount of common equity, how would this affect (1) the ROE, (2) the ROA, and (3) the ratio of total debt to total assets?
3. Data for ABC Chip Company and its industry averages is follows.
a. Calculate the indicated ratios for ABC.
c. Outline ABC’s strengths and weaknesses as revealed by your analysis.
ABC Chip Company: Balance Sheet as of December 31, 2010(Thousands of Dollars)
Cash $ 77,500 Accounts payable $129,000
Receivables 336,000 Notes payable 84,000
Inventories 241,500 Other current liabilities 117,000
Total current assets $655,000 Total current liabilities $330,000
Net fixed assets 292,500 Long-term debt 256,500
Common equity 361,000
Total assets $947,500 Total liabilities and equity $947,500
ABC Chip Company: Income Statement for Year Ended December 31, 2010 (Thousands of Dollars)
Sales $1,607,500
Cost of goods sold 1,392,500
Selling, general, and administrative expenses 145,000
Earnings before interest and taxes (EBIT) $ 70,000
Interest expense 24,500
Earnings before taxes (EBT) $ 45,500
Federal and state income taxes (40%) 18,200
Net income $ 27,300
Ratio ABCIndustry Average
Current ratio 2.0
Account receivable collection 35.0 days
Sales/Inventory 6.7
Sales/Fixed assets 12.1
Sales/Total assets 3.0
Net income/Sales 1.2%
Net income/Total assets 3.6%
Net income/Common equity 9.0%
Total debt/Total assets 60.0
Calculation is based on a 360-day year.
Assume that ABC Company sells an issue of common stock to potential investors in the country. The selling price per common share of the bank is 2000 Birr. The company incurs a selling (flotation) cost of 10 Birr per share. The current dividend of the bank’s common share is 200 Birr per share and it is expected to grow a 5% annual compound rate.
Required;
A) Compute the specific cost of capital of Common stock
B) Compute the specific cost of capital of Retained earnings
Biftu Company’s balance sheet on the right hand side shows the following capital component data,
Source Of Capital
Book Value
Specific Cost Of Capital
10% bond ,1000 br. par value
60,000 br.
0.05
Preferred stock,
62,500 outstanding
500,000
0.095
Common stock, 1,000,000 br. shares outstanding
10,000,000
0.12
Retained earning
4,000,000
0.11
Based on the information Compute the weighted average cost of capital by using the book value weighted method
On the above question number 3, financial manager collected data about the market price of each capital component and reported that the bond currently are quoted at 94 birr, preferred stock is selling for 90 birr per share, and the common stock currently sells for birr 18 per share. Compute WACC using market value method.
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