Question

In: Finance

Fixed Assets: 915 642 947 TL, Current Assets: 377 851 878 TL, Short-Term Liability: 238 802...

Fixed Assets: 915 642 947 TL, Current Assets: 377 851 878 TL, Short-Term Liability: 238 802 542 TL, Long-Term Liability:210 752 421 TL, Total shares: 191 447 068, According to above information, calculate financial leverage, net working capital, equity and equity value per share.   

Solutions

Expert Solution

Financial Leverage = Total Debts / Total Shareholder's Equity

Total Debts = Short Term Liability + Long Term Liability

Total Debts = 238 802 542 + 210 752 421 = 449 554 963

Total Shareholder's Equity = Total Asset - Total Liabilities

Total Assets = Fixed Asset + Current Asset = 915 642 947 + 377 851 878 = 1293 494 825

Total Liabilities = Short Term Liability + Long Term Liability = 238 802 542 + 210 752 421 = 449 554 963

Total Shareholder's Equity = Total Asset - Total Liabilities = 1293 494 825 - 449 554 963 = 843 939 862

Financial Leverage = 449 554 963 / 843 939 862 = 0.53 ( or, 53.27%)

ANSWER - Financial Leverage = 0.53 ( or, 53.27%)

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Net Working Capital = Current Assets - Current Liabilities

Net Working Capital = 377 851 878 - 238 802 542

ANSWER - Net Working Capital = 139 049 336

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Equity = Total Asset - Total Liabilities

Total Assets = Fixed Asset + Current Asset = 915 642 947 + 377 851 878 = 1293 494 825

Total Liabilities = Short Term Liability + Long Term Liability = 238 802 542 + 210 752 421 = 449 554 963

Equity = 1293 494 825 - 449 554 963 = 843 939 862

Equity = 843 939 862

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Equity Value Per Share = Shareholder's Equity / Total Shares

Shareholder's Equity = Total Asset - Total Liabilities

Total Assets = Fixed Asset + Current Asset = 915 642 947 + 377 851 878 = 1293 494 825

Total Liabilities = Short Term Liability + Long Term Liability = 238 802 542 + 210 752 421 = 449 554 963

Shareholders' Equity = 1293 494 825 - 449 554 963 = 843 939 862

Total Shares = 191 447 068

Equity Value Per Share = 843 939 862 / 191 447 068 = 4.40

Equity Value Per Share = 4.40 TL


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