Question 1

Cancun’s financial statements are shown below.

Answer each questions based on them.

1. What is the change in the net working capital from 2014 to 2015?
1 point
1026
2
Question 2
2. What is the amount of the noncash expenses for 2015?
1 point
1611
3
Question 3
3. What is the amount of the net capital spending for 2015?
1 point
1229
4
Question 4
4. What is the operating cash flow for 2015?
1 point
19213
5
Question 5
5. What is the cash flow from assets for 2015?
1 point
16958
6
Question 6
6. What is the amount of net new borrowing for 2015?
1 point
-3150
7
Question 7
7. What is the cash flow to creditors for 2015?
1 point
6206
8
Question 8
8. What is the amount of dividends paid in 2015?
1 point
13252
 13252
9
Question 9
9. What is the cash flow to stockholders for 2015?
10752

1
Question 1
Cherry Inc. reported current assets of $100 and fixed assets of $80 as of December 31. As of December 31, the com
1 point
32
2
Question 2
HS Inc. has 160,000 shares of stock outstanding, sales of $1.94 million, net income of $115,400, a price-earnings ra
1 point

0.72

12.13

None of the above

3
Question 3
Naver Corporation had 2015 fixed assets of $1,645, current assets of $260, current liabilities of $140 and sharehold
1 point
40
4
Question 4
Given the tax rates as shown, what is the average tax rate for a firm with taxable income of $353,600? Rounding nu
Taxable I Tax Rate
$0 - 50,0015%
50,001 - 25%
75,001 - 34%
100,001 - 39%
1 point

5
Question 5
Which of the following are operating cash flows?
I. Interest received
II. Interest paid
III. Dividends received
IV. Dividends paid
1 point

I, II

I, III

I, II, III

I, III, IV
6
Question 6
Oceans Inc. had beginning net fixed assets of $2,100 and ending net fixed assets of $3,150. Depreciation for the ye
1 point

($200)

$200

$1,900

$6,100
7
Question 7
The Milk News had beginning long-term debt of $1,742 and ending long-term debt of $1,852. The beginning and end
1 point

($380)

($7,471)

$380
8
Question 8
All else constant, if a firm can decrease its operating costs, price-earnings ratio will ___________.
1 point

Increase

Decrease
9
Question 9
Q12 to Q20 are continued questions.
Star Health is a small healthcare company that has developed a new multivitamin supplem
(On some questions, your answer may include a dollar sign, or a percent sign. You should not include these symbol
What is the estimated value of the Star Health in 4 years?
1 point
180000000
10
Question 10
What is the venture capitalist’s future value given its required rate of return?
1 point
35437500
11
Question 11
How much is the venture capitalist’s ownership percentage? (Round the result to one decimal places)
1 point
19.7
12
Question 12
How many shares should Star Health give to venture capitalist? (Round the result to the nearest whole number)
1 point
147198
13
Question 13
What price per share should venture capitalist agree to pay? (Round the result to one decimal places)
1 point
47.6
14
Question 14
How much is the implied post-money valuation?
1 point

15
Question 15
(Continued) Suppose further that Star Health would need another $3 million at the beginn
How much is the Round 2 investor’s final ownership percentage? (Time horizon is 1 year and round the result to one
1 point
2.2
16
Question 16
What is the Round 1 venture capitalist’s retention ratio?
1 point
97.8
17
Question 17
How much is the Round 1 venture capitalist’s current ownership percentage? (Round the result to one decimal place
1 point
20.1
 20.1
18
Question 18
How many new shares venture capitalist should purchase at 1st round? (Round the result to the nearest whole num
Note: Use the answer from previous problem. Instead calculating correctly using Excel and then rounded for each p
1 point
150938
19
Question 19
How many new shares round 2 investor should purchase at 2nd round? (Round the result to one decimal places)
Note: Use the answer from previous problem. Instead calculating correctly using Excel and then rounded for each p
1 point
16892
20
Question 20
What price per share should the Round 1 venture capitalist agree to pay? (Round the result to one decimal places)
Note: Use the answer from previous problem. Instead calculating correctly using Excel and then rounded for each p
1 point
46.4
21
Question 21
Delicious Burger has net income of $200,000, a earnings per share of $0.8, and a price-earnings ratio of 15. How m
1 point
250000
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 As of December 31, the company also reports current liabilities of $85 and long-term liabilities of $63. Calculate Cherry Inc. sh

$115,400, a price-earnings ratio of 18.7, and a book value per share of $9.12. What is Earnings per share(EPS)?

ilities of $140 and shareholders' equity of $775. The 2014 total assets were $1,200, current assets of $240, long-term liabilities

e of $353,600? Rounding numbers to two decimal place and write the answer as percentage. (i.e If your number is 0.2 then wri
 ,150. Depreciation for the year was $850. What is the amount of net capital spending?

1,852. The beginning and ending total debt balances were $10,652 and $18,613, respectively. The interest paid was $490. Wha

w multivitamin supplement. The firm is fully owned by its founder and shares outstanding is 0.6 mill
uld not include these symbols in your answer.)
ecimal places)

e nearest whole number)

ecimal places)

3 million at the beginning of year 3 – Round 2 investor require 30% return.

ar and round the result to one decimal places.)

e result to one decimal places)

ult to the nearest whole number)
and then rounded for each parameter.

ult to one decimal places)

and then rounded for each parameter.

esult to one decimal places)

and then rounded for each parameter.

-earnings ratio of 15. How many shares of stock are outstanding?

$63. Calculate Cherry Inc. shareholders' equity.

r share(EPS)?

of $240, long-term liabilities of $390 and shareholder’s equity of $650. What was the change in net working capital in 2015?

f your number is 0.2 then write down 20)

interest paid was $490. What is the amount of the cash flow to creditors?

outstanding is 0.6 million. The founder of Star Health believes that the new product has higher abs
t working capital in 2015?
product has higher absorption rate than existing multivitamin products do. Therefore, the founder
herefore, the founder believes that the new product will quickly find a market and that net income
et and that net income will be $15 million by the four year. As a venture capitalist, you have been a
talist, you have been approached about providing $7 million in additional capital to the firm, prima
pital to the firm, primarily to cover the commercial introduction of the product and expanding the m
t and expanding the market for the next four years. Similar companies which offer multivitamin su
h offer multivitamin supplements listed on stock exchanges are trading at an average price-earning
average price-earnings ratio of 12. Since this business has a product, ready for the market, but ha
for the market, but has no history of commercial success, you decide to use a target rate of return
a target rate of return of 50%.
 1
Question 1
Case Study Quiz : Ysom, Inc.
Q1 ~ Q6 is related to Income Statement.
Calculate Earnings before interest and taxes in 2014 (B22 in excel template).
1 point
87000
2
Question 2
Calculate Taxable income in 2015 (C24 in excel template).
1 point
93000
3
Question 3
Calculate Taxes in 2014 (B25 in excel template).
Hint : Ysom has a 40% tax rate.
1 point
30000
4
Question 4
Calculate Net income in 2015 (C26 in excel template).
1 point
55800
5
Question 5
Calculate Dividends in 2014 (B27 in excel template).
Hint : Ysom recently pays out 40 percent of net income as dividends.
1 point
18000
6
Question 6
Calculate Addition to retained earnings in 2015 (C28 in excel template).
1 point
33480
7
Question 7
Q7 ~ Q11 is related to Balance Sheet.
Calculate Current assets in 2014 (B35 in excel template).
1 point
88000
8
Question 8
Calculate Total assets in 2015 (C38 in excel template).
1 point
398000
9
Question 9
Calculate Current liabilities in 2014 (E35 in excel template).
1 point
43000
10
Question 10
Calculate Equity in 2015 (F37 in excel template).
1 point
198000
11
Question 11
Calculate Total liabilities and shareholder's equity in 2014 (E38 in excel template).
1 point
328000
12
Question 12
Calculate New equity in 2015 (C13 in excel template).
1 point

13
Question 13
Q13 ~ Q18 is related to Cash flow.
Calculate Operating cash flow in 2014 (B45 in excel template).
1 point
112000
14
Question 14
Calculate Net capital spending in 2015 (C51 in excel template).
1 point
103000
15
Question 15
Calculate Change in NWC in 2015 (C57 in excel template).
1 point
13000
16
Question 16
Calculate Cash flow from assets in 2015 (C64 in excel template).
1 point
16800
 16800
17
Question 17
Calculate Cash flow from creditors in 2015 (C70 in excel template).
1 point
-3000
18
Question 18
Calculate Cash flow from stockholders in 2015 (C76 in excel template).

1
Question 1
Case Study Quiz : Ysom, Inc. (Continued)

Let’s assume that Ysom’s expected earnings in 2020 is 10 times of the 2015 net income, c

Calculate FV of new equity (C78 in excel template).

Rounding numbers to the nearest whole number.

1 point
19136
2
Question 2
Calculate Value of Ysom in 2020 (C79 in excel template).
1 point
11160000
3
Question 3
Calculate VC's ownership (C80 in excel template).

Rounding numbers to two decimal place and write the answer as percentage.
1 point
0.17
4
Question 4
How many shares should Ysom give to the VC? (C81 in excel template).

Rounding numbers to the nearest whole number.

1 point
172
5
Question 5
What price per share should VC agree to pay? (C83 in excel template).
Rounding numbers to two decimal place.
1 point
14.67
6
Question 6
What is the pre-money valuation of the firm? (C84 in excel template).

Rounding numbers to two decimal place.

1 point
1467109.63
7
Question 7
What is the post-money valuation of the firm?(C85 in excel template).

Rounding numbers to two decimal place.

1 point
1469629.63
8
Question 8
What is the Professor Shin's carried interest? (C86 in excel template).

Rounding numbers to two decimal place.

1 point
733544.81
9
Question 9
So far, we assumed that one round of financing is sufficient until 2020. In this question, le

Calculate FV of the first round investment (C88 in excel template).

Rounding numbers to the nearest whole number.

Hint : 50% return, 5 years.

1 point
19136
10
Question 10
Calculate FV of the second round investment (C92 in excel template).

Rounding numbers to the nearest whole number.

Hint: $50,000 at 30% return for 3 years.

1 point
109850
 109850
11
Question 11
Calculate The second round VC's ownership (C94 in excel template).

Rounding numbers to two decimal place and writhe the answer as percentage.
1 point
0.98
12
Question 12
Calculate The first round VC's retention ratio (C96 in excel template).

Rounding numbers to two decimal place and writhe the answer as percentage.
1 point
99.02
13
Question 13
Calculate the percent ownership the first round VC holds as of VC's investment, which is ca

Rounding numbers to two decimal place and writhe the answer as percentage.
1 point

14
Question 14
How many shares should Ysom give to the first round VC? (C99 in excel template).

Rounding numbers to the nearest whole number.

1 point

15
Question 15
What price per share should the first round VC agree to pay? (C100 in excel template).

Rounding numbers to two decimal place.

1 point

16
Question 16
Calculate Shares outstanding before round 2 (C101 in excel template).

Rounding numbers to the nearest whole number.

1 point
 17
Question 17
How many shares should Ysom give to the second round VC? (C102 in excel template).

Rounding numbers to the nearest whole number.

1 point

18
Question 18
Calculate Shares outstanding after round 2 (C103 in excel template).

Rounding numbers to the nearest whole number.

1 point

19
Question 19
What price per share should the second round VC agree to pay? (C104 in excel template).

Rounding numbers to two decimal place.

1 point

20
Question 20
What is terminal share price? (C106 in excel template).

Rounding numbers to two decimal place.

1 point
110.13
21
Question 21
Calculate IRR for the first round VC (C109 in excel template).

Rounding numbers to the nearest whole number and write the answer as percentage.

Hint: For calculating IRR, use RATE function in excel.

1 point
template).
he 2015 net income, comparable companies’ PE ratio is 20 time, and VC’s require rate of return is 5
20. In this question, let’s assume that Ysom requires additional funding of 50,000 dollars in 2 years
nvestment, which is called the current percent ownership. (C97 in excel template).

el template).

n excel template).
n excel template).

04 in excel template).
quire rate of return is 50%. Answer to the following questions, Q1~Q8.
0,000 dollars in 2 years to commercialize its prototype. The VC’s required rate of return for this rou
e of return for this round of investment is 30% and its investment period is 3 years. Answer to the
years. Answer to the following questions, Q9~ .