15 There were no share issues or stock repurchases during th
Solution
Question 15 – Please provide completed data to answer this question.
Question 16 – The Correct Option is C. $195
Explanation:
We need to understand each line given in the question.
Firm reported $130 million increase in cash over a year. It means whatever the beginning cash balance was in the firm at the beginning of the year, there were an increase of $130 million in ending balance of cash.
Calculation of how much did the firm invest in investing activities
Cash Flow from Operation
$400 Million
(-) Cash used in financing activities
($75 Million)
Net Cash Available
$325 million
(-) Increase in Cash over the period
($130 Million)
Net Cash Available to Invest in Investing Activities
$195 Million
Hence, the correct option is C. $195
Question 17 --- The correct option is A. 23.41%
We need to understand the meaning of Holding Period and Holding Period Return..
- The holding period is the investment period.
- Return over the holding period is known as holding period return
- It is the % return of total holding period and not for one year period.
Holding Period Return = Receipt of Dividend or Interest + (Value of Share at the end of holding period – Share Value at the beginning of holding period) / Value of Share at beginning of Holding Period x 100
= ($0.875 + ($67 - $55)) / $55 x 100
= 23.41%
The return to holding Nike’s shares during 2008 is 23.41%
Hence, the correct option is A. 23.41%
Hope the above calculations, working and explanations are clear to you and help you in understanding the concept of question.... please rate my answer...in case any doubt, post a comment and I will try to resolve the doubt ASAP…thank you
Pls ask separate question for remaining parts.
| Cash Flow from Operation | $400 Million |
| (-) Cash used in financing activities | ($75 Million) |
| Net Cash Available | $325 million |
| (-) Increase in Cash over the period | ($130 Million) |
| Net Cash Available to Invest in Investing Activities | $195 Million |

