- Complete problem: Total Net Operating Capital
- XYZ, Inc. reported $20 million in operating current assets, $25 million in net fixed assets, and $6 million in operating current liabilities. How much total net operating capital does XYZ, Inc. have?
- Show your work.
- Complete problem: Balance Sheet Analysis
- Complete the balance sheet and sales information in the table that follows for XYZ, Inc., using the following financial data:
- Show your work.
Total assets turnover: 1.5
Gross profit margin on sales: (Sales – Cost of goods sold)/Sales = 25%
Total liabilities-to-assets ratio: 40%
Quick ratio: 0.80
Days sales outstanding (based on 365-day year): 36.5 days
Inventory turnover ratio: 3.75
Partial Income Statement Information
Costs of goods sold
Balance Sheet Information
Total liabilities and equity
- Complete problem: Yield to Maturity for Annual Payments
XYZ Corporation’s bonds have 14 years remaining to maturity. Interest is paid annually, the bonds have a $1,000 par value, and the coupon interest rate is 10%. The bonds sell at a price of $950. What is their yield to maturity? Show your work.
- Complete problem: Required Rate of Return
Show your work.
Suppose rRF = 6%; rM = 10%; and rA = 14%
- Calculate Stocks A’s beta.
- If Stock A’s beta were 2.0, then what would be A’s new required rate of return?
- Complete problem: Portfolio Beta
You have a $4 million portfolio consisting of a $100,000 investment in each of 20 different stocks. The portfolio has a beta of 1.1. You are considering selling $100,000 worth of one stock with a beta of 0.9 and using the proceeds to purchase another stock with a beta of 1.4. What will the portfolio’s new beta be after these transactions? Show your work.
Prepare this Assignment responding to the problems as a Excel® or Microsoft® Word®, showing all necessary formulas and steps. List each question, followed by your answer.
The Module 2 Competency Assessment has 3 parts.
Part 1 Prepare balance sheet analysis using financial data
- Calculate corporate tax liabilities
- Calculate liabilities and equity
Part 2 Analyze Portfolio Beta
- Calculate stock beta
Part 3 Calculate corporate tax liabilities
- Calculate yield to maturity for annual payments
- Analyze portfolio beta
Minimum Submission Requirements
- This Assessment should be a Microsoft Word (minimum 350 words) document, in addition to the title and reference pages.
- Respond to the questions in a thorough manner, providing specific examples of concepts, topics, definitions, and other elements asked for in the questions. Your submission should be highly organized, logical, and focused.
- Your submission must be written in Standard English and demonstrate exceptional content, organization, style, and grammar and mechanics.
- Your submission should provide a clearly established and sustained viewpoint and purpose.
- Your writing should be well ordered, logical and unified, as well as original and insightful.
- A separate page at the end of your submission should contain a list of references, in APA format. Use your textbook, the Library, and the internet for research.
- Be sure to cite both in-text and reference list citations where appropriate and reference all sources. Your sources and content should follow proper APA citation style.