Financial Management Project Report: CFFA, Present Value of Perpetuity, PE Ratio

Running Head: Financial Management
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Project Report: Financial Management

Financial Management
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Contents
Question 1.........................................................................................................................3
Question 2.........................................................................................................................4
Question 3.........................................................................................................................5
References.........................................................................................................................7

Financial Management
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Question 1:
Below are the calculations of CFFA of XYZ limited:
XYZ limited
2018 and 2019 Balance
sheet
2019 2018
Assets
Current Assets
Cash $ 50,000,000 $ 70,000,000
Trade receivable $ 10,000,000 $ 15,000,000
Stock $ 20,000,000 $ 15,000,000
Total current Assets $ 80,000,000 $ 100,000,000
Noncurrent Assets
PPE $ 115,000,000 $ 110,000,000
Total noncurrent Assets $ 115,000,000 $ 110,000,000
Total assets $ 195,000,000 $ 210,000,000
Liabilities and Equity
Current Liabilities
Trade payable $ 10,000,000 $ 45,000,000
Bank loan $ 45,000,000 $ 28,000,000
Total Current liabilities $ 55,000,000 $ 73,000,000
Noncurrent liabilities
Long term debt $ 45,000,000 $ 60,000,000
Total noncurrent
liabilities $ 45,000,000 $ 60,000,000
Total liabilities $ 100,000,000 $ 133,000,000
Net Assets $ 95,000,000 $ 77,000,000
Owner's equity
Common stock $ 92,075,000 $ 70,000,000
Retained earning $ 2,925,000 $ 7,000,000
Total owner's stock $ 95,000,000 $ 77,000,000