Need help with my Finance question – I’m studying for my class.
Q1: Meet Mr. Mohammed, owner of the AL-SALAMAH Company. He would like to complete his financial forecast for next year and wonder if he could use the percentage of sales method. He has determined that his sales will increase by 15% annually over the next three years.If costs are proportional to sales at 80%, and last year’s sales were SAR 2,000, what is the projected net income in year 3?
Q3: Calculate Weighted Average Cost of Capital (WACC) if tax rate for a firm is 30 and firm’s capital mix consist of $150 million debt @ 7 % return and $500 million equity requiring a 12% return.
Q3: What is meant by cash conversion cycle?
Textbook
- Brealey, R., Myers, S., and Marcus, A. (2012). Fundamentals of Corporate Finance. (7th). New York, NY: McGraw-Hill/Irwin. ISBN: 9780078034640 (hard copy); ISBN: 9780077410711 (e-copy).
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