fin201 help me in my duty
College of Administrative and Financial Sciences
Assignment 2
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Course Name: Corporate Finance |
Student’s Name: |
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Course Code: Fin201 |
Student’s ID Number: |
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Semester: 2 |
CRN: |
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Academic Year: 1441 H |
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For Instructor’s Use only
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Instructor’s Name: |
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Students’ Grade:Marks Obtained/5 |
Level of Marks: High/Middle/Low |
Question 1:
a. Would you expect Alothaim Market, which sells food, or Panda Market, which sells a wide range of household goods at attractive prices, to have the higher cash conversion cycle? Why?
b. Use the following data to calculate the cash conversion cycle of each firm (all values are in millions of dollars). What factor has the greatest impact on the difference in their conversion cycles?
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Alothaim Market |
Panda Market |
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Sales |
4,890 |
20,000 |
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Cost of good sold |
2.600 |
8000 |
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Inventories |
3,400 |
2000 |
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Accounts receivable |
250 |
670 |
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Account payable |
350 |
1000 |
Question 2:
Recall that in2018 Executive Fruit ended the year with $1,000,000 of fixed assets and net working capital, and it had $3,000,000 of sales. In other words, each dollar of sales required $.70 of net assets. The company forecasts that sales in 2019 will increase by $300,000. Therefore, if the ratio of net assets to sales remains constant, assets in 2019 will need to rise by $.70 of this increase can be financed by reinvested earnings, which in 2019 are $40,000. So the amount of external financing needed is
Question 3:
What are some of the motivations for leveraged and management buyouts of the firm?
&&Points to keep in mind:
- This assignment must be submitted on Blackboard (WORD format only) via the allocated folder.
- Email submission will not be accepted.
- You are advised to make your work clear and well-presented; marks may be reduced for poor presentation. This includes filling your information on the cover page.
- Assignment will be evaluated through the BB Safe Assign tool.
- Late submission will result in ZERO marks being awarded.
- The work should be your own, copying from students or other resources will result in ZERO marks.
- Use Times New Roman font 12 for all your answers.
