- •Exercise 1.
- •Exercise 2.
- •Exercise 3
- •Information about structure of Current Assets and sources it’ financing
- •Exercise 4
- •Exercise 5
- •Exercise 6
- •Exercise 7
- •Table 1 Measuring the value of a capital:
- •Table 2 Calculating the average value of capital
- •Exercise 8
- •Table 1 Calculation the level of financial profitability of enterprise in different variants of the structure of the capital
- •Exercise 9
- •Given data
- •Calculation the average value of capital in different variants of capital structure
- •Exercise 10
- •Exercise 11
- •Table 1 Calculation of level of operational, financial, combined leverage and it’s influence on level of financial profitability of enterprise
- •Exercise 12
- •Table 1 Calculating the credit costs in a bank “a” compared to Market terms
- •Exercise 13
- •Calculation the additional net cash flow of real investment project
- •Exercise 14
- •Table 1 Analysis of changes balance indicators.
- •Table 2 Calculation the net operational cash flow
- •Exercise 15
- •Table 1 Analysis of sources of formation and use cash flows of enterprises.
- •Table 2 Balancing Cash Flows analysis and analysis of effective it’s management
- •Exercise 16
- •Table 1 Calculation the main ways spending cash flows in operational activity
- •Calculation the level, synchronized and effectiveness of management cash flow
- •Exercise 17
- •Table 1 Cash Flow Plan in the next to Current period
Exercise 12
The enterprise requires to take 200 thousand UAH credit for 3 months and decide to chose Bank “A” in this case:
Bank |
Interest rate (per year) |
Terms of interest payments |
Terms of changes level of interest rate |
Additional payments |
А |
32% |
Every month |
Changes depending on inflation |
2,5% of credit amount |
The month rate of inflation is – 1,5%
The market terms: interest rate is 42% per year with monthly payment interests: level is fixed while the first 2 months and then varies according to inflation. (with out additional payments)
The terms of both loans requires turning all the sum back in 3 months.
Decide if it worth to take a credit in a bank “A”
In this case you have:
To calculate the costs of credit of a bank “A” and of market conditions;
To calculate the economy ore expenditure of involving credit in a bank “A”;
To make conclusions if it’s worth to take a credit in a bank “A”.
Table 1 Calculating the credit costs in a bank “a” compared to Market terms
Indicators |
1 month |
2 month |
3 month |
Total |
Bank А |
||||
1. Interests, thousand UAH |
|
|
|
- |
2. Additional payments, thousand UAH |
|
|
|
- |
3. Loan, thousand UAH |
|
|
|
- |
|
|
|
|
- |
|
|
|
|
|
Market terms |
||||
1. Interests, thousand UAH |
|
|
|
- |
2. Additional payments, thousand UAH |
|
|
|
- |
3. Loan, thousand UAH |
|
|
|
- |
|
|
|
|
- |
|
|
|
|
|
Exercise 13
The enterprise to make modernization of manufacturing process plans to buy ne equipment 7500 thousand UAH cost. The period of investment is 5 years. The enterprise use straight-line depreciation method.
The investment will let:
To increase the amount of production for 500 thousand UAH (without VAT) on first year and then increasing for 7% per year;
To reduce the stuff for 5 persons with the average salary 5000 UAH per month;
To increase the current costs for technical service of equipment for 9 thousand UAH per year.
The average value of the capital of the project is 17%.
*The amount of production equal amount of sales.
Decide if it’s worth to realize investment project on criteria Net Present Value, , payback period, return index and internal rate of return. In this case you have:
To calculate the additional net cash flow of investment project;
To calculate the indicators of effectiveness real investment project (NPV, payback period, return index and internal rate of return);
To make conclusions if it’s worth to realize real investment project.
Table 1.