Assignment

1.If net financial expense (NFE) in 2014 was $1, net financial assets (NFA) were $117 and $143 in 2014 and 2013 respectively, net dividends in 2014 were $11, the firm’s free cash flow for 2014 is:

2.If operating income in this year is manipulated up by $381, next year’s operating income is expected to be $3,814 with RNOA₁ of 13%, in this case the actual NOA₀ for this year before manipulation is:

3.(Please insert the answer in decimal form and round it to three decimal places if needed, example. 5.43% should be inserted as 0.054). If the return on net operating assets (RNOA) is 10%, financial leverage (FLEV) is 2, net borrowing cost (NBC) is 7%, the return on common equity (ROCE) is:

4.(Please insert the answer in decimal form and round it to three decimal places if needed, example. 5.43% should be inserted as 0.054). If the return on operating assets (ROOA) is 7%, the return on net operating assets (RNOA) is 11%, net operating assets are $253, and operating liabilities are $203, what is the implicit after-tax interest rate on the operating liabilities?

5. If CSE in year 1 was $279, the change from year 1 to year 2 in NOA is $281 and the change in NFO from year 1 to year 2 is $123, what is the balance of CSE in year 2?