Assume the unlevered beta of the company is 1.5 for all 5 years Tax Rate 35% Assume Total Liabilities shown on balance sheet as Total Debt Requirements: Calculate the Levered Beta of assigned company for last 5 years. Comment in the industry outlook the company is operating. 2021 2020 2019 2018 2017 Property , Plant and Equipment $ 19,179,617 $ 20,638,354 $ 19,862,302 $ 18,262,610 $ 13,639,451 Right Of use Assets $ 19,318 $ 49,377 ---- ---- ---- Intangible Assets $ 885 $ 1,197 $ 2,736 $ 2,565 $ 3,903 Other non Current Assets $ 100 $ 100 $ 100 $ 100 $ 100 Current Assets $ 22,519,623 $ 22,172,184 $ 19,896,904 $ 17,327,314 $ 12,727,641 Total Assets $ 41,719,543 $ 42,861,212 $ 39,762,042 $ 35,592,589 $ 26,371,095 Shareholder equity $ 18,887,640 $ 12,725,815 $ 12,878,270 $ 11,825,008 $ 8,554,247 Non Current liabilities $ 6,474,761 $ 6,568,651 $ 8,597,759 $ 8,476,513 $ 5,101,271 Long Term Financing $ 1,462,435 $ 1,487,634 $ 909,943 $ 1,201,679 $ 1,197,073 Short term borrowing $ 6,796,345 $ 11,520,404 $ 10,191,219 $ 8,462,310 $ 5,039,236 Other Current Liabilities $ 8,098,362 $ 10,558,708 $ 7,184,851 $ 5,627,079 $ 6,479,268 Total Equity and Liabilities $ 41,719,543 $ 42,861,212 $ 39,762,042 $ 35,592,589 $ 26,371,095 Sales-Net $ 69,796,240 $ 48,081,937 $ 57,484,354 $ 49,159,626 $ 34,822,276 Cost of Sales $ (56,304,367) $ (43,869,080) $ (51,035,302) $ (41,528,466) $ (28,916,159) Gross Profit $ 13,491,873 $ 4,212,857 $ 6,449,052 $ 7,631,160 $ 5,906,117 Administrative, Selling and Distribution Expense $ (1,424,515) $ (1,157,145) $ (986,231) $ (719,689) $ (548,670) Other Operating Expense $ (1,276,659) $ (334,257) $ (533,801) $ (661,595) $ (424,951) Other Operating Income $ 315,833 $ 35,523 $ 39,413 $ 92,552 $ 131,778 Operating Profit Before Finance Cost $ 11,106,532 $ 2,756,978 $ 4,968,433 $ 6,342,428 $ 5,064,274 Finance Cost $ (811,931) $ (2,314,807) $ (1,289,315) $ (539,116) $ (455,500) Profit Before Taxation $ 10,294,601 $ 442,171 $ 3,679,118 $ 5,803,312 $ 4,608,774 Taxation $ (2,828,270) $ 52,680 $ (1,014,745) $ (1,438,354) $ (1,564,752) Profit Before Taxation $ 7,466,331 $ 494,851 $ 2,664,373 $ 4,364,958 $ 3,044,022

Assume the unlevered beta of the company is 1.5 for all 5 years Tax Rate 35% Assume Total Liabilities shown on balance sheet as Total Debt Requirements: Calculate the Levered Beta of assigned company for last 5 years. Comment in the industry outlook the company is operating. 2021 2020 2019 2018 2017 Property , Plant and Equipment $ 19,179,617 $ 20,638,354 $ 19,862,302 $ 18,262,610 $ 13,639,451 Right Of use Assets $ 19,318 $ 49,377 ---- ---- ---- Intangible Assets $ 885 $ 1,197 $ 2,736 $ 2,565 $ 3,903 Other non Current Assets $ 100 $ 100 $ 100 $ 100 $ 100 Current Assets $ 22,519,623 $ 22,172,184 $ 19,896,904 $ 17,327,314 $ 12,727,641 Total Assets $ 41,719,543 $ 42,861,212 $ 39,762,042 $ 35,592,589 $ 26,371,095 Shareholder equity $ 18,887,640 $ 12,725,815 $ 12,878,270 $ 11,825,008 $ 8,554,247 Non Current liabilities $ 6,474,761 $ 6,568,651 $ 8,597,759 $ 8,476,513 $ 5,101,271 Long Term Financing $ 1,462,435 $ 1,487,634 $ 909,943 $ 1,201,679 $ 1,197,073 Short term borrowing $ 6,796,345 $ 11,520,404 $ 10,191,219 $ 8,462,310 $ 5,039,236 Other Current Liabilities $ 8,098,362 $ 10,558,708 $ 7,184,851 $ 5,627,079 $ 6,479,268 Total Equity and Liabilities $ 41,719,543 $ 42,861,212 $ 39,762,042 $ 35,592,589 $ 26,371,095 Sales-Net $ 69,796,240 $ 48,081,937 $ 57,484,354 $ 49,159,626 $ 34,822,276 Cost of Sales $ (56,304,367) $ (43,869,080) $ (51,035,302) $ (41,528,466) $ (28,916,159) Gross Profit $ 13,491,873 $ 4,212,857 $ 6,449,052 $ 7,631,160 $ 5,906,117 Administrative, Selling and Distribution Expense $ (1,424,515) $ (1,157,145) $ (986,231) $ (719,689) $ (548,670) Other Operating Expense $ (1,276,659) $ (334,257) $ (533,801) $ (661,595) $ (424,951) Other Operating Income $ 315,833 $ 35,523 $ 39,413 $ 92,552 $ 131,778 Operating Profit Before Finance Cost $ 11,106,532 $ 2,756,978 $ 4,968,433 $ 6,342,428 $ 5,064,274 Finance Cost $ (811,931) $ (2,314,807) $ (1,289,315) $ (539,116) $ (455,500) Profit Before Taxation $ 10,294,601 $ 442,171 $ 3,679,118 $ 5,803,312 $ 4,608,774 Taxation $ (2,828,270) $ 52,680 $ (1,014,745) $ (1,438,354) $ (1,564,752) Profit Before Taxation $ 7,466,331 $ 494,851 $ 2,664,373 $ 4,364,958 $ 3,044,022

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter3: Evaluation Of Financial Performance

Section: Chapter Questions

Problem 19P

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Question

I attached in this A company table in which you can see last 5 years Financial Progress Of company

Assume

the unlevered beta of the company is 1.5 for all 5 years

Tax Rate 35%

Assume Total Liabilities shown on balance sheet as Total Debt

Requirements:

Calculate the Levered Beta of assigned company for last 5 years.

Comment in the industry outlook the company is operating.

	2021	2020	2019	2018	2017
Property , Plant and Equipment	$ 19,179,617	$ 20,638,354	$ 19,862,302	$ 18,262,610	$ 13,639,451
Right Of use Assets	$ 19,318	$ 49,377	----	----	----
Intangible Assets	$ 885	$ 1,197	$ 2,736	$ 2,565	$ 3,903
Other non Current Assets	$ 100	$ 100	$ 100	$ 100	$ 100
Current Assets	$ 22,519,623	$ 22,172,184	$ 19,896,904	$ 17,327,314	$ 12,727,641
Total Assets	$ 41,719,543	$ 42,861,212	$ 39,762,042	$ 35,592,589	$ 26,371,095
Shareholder equity	$ 18,887,640	$ 12,725,815	$ 12,878,270	$ 11,825,008	$ 8,554,247
Non Current liabilities	$ 6,474,761	$ 6,568,651	$ 8,597,759	$ 8,476,513	$ 5,101,271
Long Term Financing	$ 1,462,435	$ 1,487,634	$ 909,943	$ 1,201,679	$ 1,197,073
Short term borrowing	$ 6,796,345	$ 11,520,404	$ 10,191,219	$ 8,462,310	$ 5,039,236
Other Current Liabilities	$ 8,098,362	$ 10,558,708	$ 7,184,851	$ 5,627,079	$ 6,479,268
Total Equity and Liabilities	$ 41,719,543	$ 42,861,212	$ 39,762,042	$ 35,592,589	$ 26,371,095
Sales-Net	$ 69,796,240	$ 48,081,937	$ 57,484,354	$ 49,159,626	$ 34,822,276
Cost of Sales	$ (56,304,367)	$ (43,869,080)	$ (51,035,302)	$ (41,528,466)	$ (28,916,159)
Gross Profit	$ 13,491,873	$ 4,212,857	$ 6,449,052	$ 7,631,160	$ 5,906,117
Administrative, Selling and Distribution Expense	$ (1,424,515)	$ (1,157,145)	$ (986,231)	$ (719,689)	$ (548,670)
Other Operating Expense	$ (1,276,659)	$ (334,257)	$ (533,801)	$ (661,595)	$ (424,951)
Other Operating Income	$ 315,833	$ 35,523	$ 39,413	$ 92,552	$ 131,778
Operating Profit Before Finance Cost	$ 11,106,532	$ 2,756,978	$ 4,968,433	$ 6,342,428	$ 5,064,274
Finance Cost	$ (811,931)	$ (2,314,807)	$ (1,289,315)	$ (539,116)	$ (455,500)
Profit Before Taxation	$ 10,294,601	$ 442,171	$ 3,679,118	$ 5,803,312	$ 4,608,774
Taxation	$ (2,828,270)	$ 52,680	$ (1,014,745)	$ (1,438,354)	$ (1,564,752)
Profit Before Taxation	$ 7,466,331	$ 494,851	$ 2,664,373	$ 4,364,958	$ 3,044,022

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