finance 101

Assignment 1 FIN101

Course Name: Principles of Finance	Student’s Name:
Course Code: FIN101	Student’s ID Number:
Semester: 2nd	CRN:
Academic Year: 1440/1441 H

For Instructor’s Use only

Instructor’s Name:
Students’ Grade: / 5	Level of Marks: High/Middle/Low

Instructions:

· 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 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.

Assignment Questions

Q1 (2 marks)

Altamimi Company’s net income for the year 2000, is $3,700,214. The company had an EBITDA of $ 10,125,300, and its depreciation and amortization expense was equal to $2,543,790. The company's average tax rate is 35 percent.

a. What is the amount of interest expenses for the firm? (Show the details of your calculations).

b. Prepare a common sized Income Statement if sales equal $12,000,000.

Q2. (2 Marks)

The following are accounts balance (in thousands) for Malak Company. Prepare a balance sheet, and Income statement using intermediate steps t=35% for the year ended December 31, 2018.

Net property and equipment	$ 2,000
Accounts receivable	$3,000
Notes payable	$37,000
Revenues	$ 983,000
Supply expenses	$ 255,000
Depreciation expenses	$ 35,000
Labor expense	$300,000
Interest Expenses	$11,000
Stockholders’ Equity	$61,500
Cash & cash equivalents	$97,000
Long-term debt	$3,500

Q3. Why secondary markets are so important to raise capital? (1 mark)