1. A company starts with $1 billion in assets, $400 million in owners’ equity & $600 million in debt. It draws down $100 million from its bank credit line and uses the funds to purchase its own shares in the stock market. What does this do to the balance sheet?
2. What can you learn from researching value investing?
3. Machine cost $30,890,000 and depreciating using 5 year MACRS. Salvage value is 7 million. What is the depreciation for this schedule?