1. Klinnsman Capital reports the following select financial data for 2014: Financial Data: 2014 Sales $1,000,000.00 Net Income $125,000.00 Shareholder Equity $800,000.00 Total Assets $2,000,000.00 Calculate the DuPont ratio for 2014?
2. Should a financial manager pursue projects whose expected returns are less than the firm’s weighted average cost of capital (WACC)? Explain your answer.
3. Choose a well known merger or acquisition what went well what went badly how did the merger create erode value.