Hi there, am prepping for a finance exam, but due to a sudden death in the...

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Hi there, am prepping for a finance exam, but due to asudden death in the family, I'm really behind. Here are thequestions I'm having the hardest time with answering in doing myreview. Any help would be sincerely appreciated. Thank you.
1. Using the following data, prepare a three-stage ROEdecomposition (DuPont Analysis) for Home Depot.
Return on equity (ROE)    12%
Sales               $5,000
Current ratio           2.29
Dividend payout ratio       25%
Dividends paid           $100
Total liabilities           $4,000
Accounts payable       $600
2. Your task is to update your firm’s long-termfinancial model (that was originally prepared last year). Infinancial modeling, a key assumption involves the firm’s dividendpolicy, as typically specified by the firm’s payout ratio.
You recognize many differences between today and lastyear.
Last year, the Treasury Yield Curve was upwardsloping. Today, the Treasury Yield Curve is inverted. Lastyear, the Fed was expected to raise interest rates. Today,the Fed is expected to lower interest rates. We also know thefollowing:
Today            Last year
Forward P/E           16               20
Equity Multiplier       2.50                     1.95
Based on the differences described above, would youexpect the payout ratio in this year’s financial model to be higheror lower than it was last year? Briefly explain.
3. Glencore will need to have $3,000 on June 20, 2023(four years from now) to purchase new equipment. Toaccumulate this money, it will make four equal investments, withthe first of the equal investments beginning one year from now.
a. If Glencore can earn an annual interest rate of10%, how much must it invest per year?
b. After presenting your findings from the abovecalculation, Glencore’s CFO asks you to consider an alternativescenario. Both changes are to occur today and will continuethroughout the four years. You are to consider both changessimultaneously.
1. The interest rate will increase today and remain atthat higher level.
2. There will still be four equal investments, but thefirst investment will occur immediately.
Without doing any calculations, how would thesechanges (considered simultaneously) affect your answer in part a? Using no more than 50 words, carefully justify yourresponse.
4. Your job involves financial modeling. You gather the following information from pro forma financialstatements for the upcoming year.
    Sales (all oncredit)            $180,000
    Cost of goodssold                    $120,000
    Accounts payable              $19,000
    Accounts receivable              $27,000
    Total assets                  $72,000
    Inventory                  $16,000
    Dividends                     $1,000
After building in many other assumptions, yourpreliminary analysis indicates that the external financing needed(EFN) for the coming year will be $7,000.
a. Calculate the average days payable (ADP) that wasassumed when deriving the above results from the preliminarymodel.
b. You now want to make adjustments in your pro formafinancial policies so that you will eliminate the need for externalfinancing (that is, you want to have an EFN of $0). You rememberfrom our discussions that changing the timing of payments tosuppliers will affect the need for external financing. Calculate what the average days payable period (ADP) must beso that the firm will have an EFN of $0.
5. You are working as assistant to the CFO atPepsico. An investment banker is advising Pepsico to acquireDr. Pepper Snapple Group (DPS). To acquire DPS, the banker isrecommending that Pepsi pay $1.5 billion above the current marketvalue of DPS. Pepsi will make the payment today. The bankernotes that this higher price is justified based on the synergiesfrom the acquisition.
a. Briefly explain what is meant by the “synergiesfrom the acquisition”. Provide an example of a synergy thatmay result from this specific transaction.
b. The banker later returns with a spreadsheet thatestimates that the synergies will not begin immediately. However, synergies of $125 million are expected at the end ofyear 3. Following year 3, you expect these synergies to grow at aconstant rate throughout the foreseeable future. If anappropriate interest rate for Pepsi is 10%, what must be the annualrate of growth of the synergies to justify the $1.5 billion premiumin price that Pepsi must pay today? Provide brief calculations tosupport your position.
6a. Financial markets in most developed countries aresaid to be informationally efficient. In 50 words or less,explain what is meant by the term “market efficiency”.
b. You notice a recent article in the Wall StreetJournal that describes the enormous profits achieved by a personallegedly engaged in insider trading. One of our colleaguescomments, “The ability to achieve high profits from insider tradingdemonstrates that stock markets are not informationally efficient”. In 50 words or less, explain why you agree or disagree.
7. A mining company knows that eight years fromnow it will be required to pay $4,000,000 per year to restore thesite of a major mine. It is unsure as to how many of theseannual payments will be required, but it knows that these paymentsare likely to be required for many years. The first of theannual payments will occur at the end of year eight. To meet theseobligations, the company invests $10,224,000 today. Assuming anannual interest rate of 12% for all years, for how many years willthe firm be able to make the annual payments of $4,000,000?
8. You are interviewing for a job with a majorairline. The job description mentions that the position willinvolve a) doing short-term financial modeling and b) managingrelationships with the firm’s banks and other lenders.
To assess your understanding of corporate finance, theinterviewer asks you, “How can short-term financial modeling beused as part of the process of managing relationships with banksand other lenders?”. Using less than 50 words, provide aresponse to the interviewer’s question.

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1 Dupont Analysis Net Profit MarginAsset Turnover Equity Multiplier where Net Profit Margin Net Income Revenue Asset Turnover Sales Total Assets Equity Multiplier Total See Answer

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Hi there, am prepping for a finance exam, but due to asudden death in the family, I'm really behind. Here are thequestions I'm having the hardest time with answering in doing myreview. Any help would be sincerely appreciated. Thank you.1. Using the following data, prepare a three-stage ROEdecomposition (DuPont Analysis) for Home Depot.Return on equity (ROE) 12%Sales $5,000Current ratio 2.29Dividend payout ratio 25%Dividends paid $100Total liabilities $4,000Accounts payable $6002. Your task is to update your firm’s long-termfinancial model (that was originally prepared last year). Infinancial modeling, a key assumption involves the firm’s dividendpolicy, as typically specified by the firm’s payout ratio.You recognize many differences between today and lastyear.Last year, the Treasury Yield Curve was upwardsloping. Today, the Treasury Yield Curve is inverted. Lastyear, the Fed was expected to raise interest rates. Today,the Fed is expected to lower interest rates. We also know thefollowing:Today Last yearForward P/E 16 20Equity Multiplier 2.50 1.95Based on the differences described above, would youexpect the payout ratio in this year’s financial model to be higheror lower than it was last year? Briefly explain.3. Glencore will need to have $3,000 on June 20, 2023(four years from now) to purchase new equipment. Toaccumulate this money, it will make four equal investments, withthe first of the equal investments beginning one year from now. a. If Glencore can earn an annual interest rate of10%, how much must it invest per year?b. After presenting your findings from the abovecalculation, Glencore’s CFO asks you to consider an alternativescenario. Both changes are to occur today and will continuethroughout the four years. You are to consider both changessimultaneously.1. The interest rate will increase today and remain atthat higher level.2. There will still be four equal investments, but thefirst investment will occur immediately.Without doing any calculations, how would thesechanges (considered simultaneously) affect your answer in part a? Using no more than 50 words, carefully justify yourresponse.4. Your job involves financial modeling. You gather the following information from pro forma financialstatements for the upcoming year. Sales (all oncredit) $180,000 Cost of goodssold $120,000 Accounts payable $19,000 Accounts receivable $27,000 Total assets $72,000 Inventory $16,000 Dividends $1,000After building in many other assumptions, yourpreliminary analysis indicates that the external financing needed(EFN) for the coming year will be $7,000.a. Calculate the average days payable (ADP) that wasassumed when deriving the above results from the preliminarymodel.b. You now want to make adjustments in your pro formafinancial policies so that you will eliminate the need for externalfinancing (that is, you want to have an EFN of $0). You rememberfrom our discussions that changing the timing of payments tosuppliers will affect the need for external financing. Calculate what the average days payable period (ADP) must beso that the firm will have an EFN of $0.5. You are working as assistant to the CFO atPepsico. An investment banker is advising Pepsico to acquireDr. Pepper Snapple Group (DPS). To acquire DPS, the banker isrecommending that Pepsi pay $1.5 billion above the current marketvalue of DPS. Pepsi will make the payment today. The bankernotes that this higher price is justified based on the synergiesfrom the acquisition.a. Briefly explain what is meant by the “synergiesfrom the acquisition”. Provide an example of a synergy thatmay result from this specific transaction.b. The banker later returns with a spreadsheet thatestimates that the synergies will not begin immediately. However, synergies of $125 million are expected at the end ofyear 3. Following year 3, you expect these synergies to grow at aconstant rate throughout the foreseeable future. If anappropriate interest rate for Pepsi is 10%, what must be the annualrate of growth of the synergies to justify the $1.5 billion premiumin price that Pepsi must pay today? Provide brief calculations tosupport your position.6a. Financial markets in most developed countries aresaid to be informationally efficient. In 50 words or less,explain what is meant by the term “market efficiency”.b. You notice a recent article in the Wall StreetJournal that describes the enormous profits achieved by a personallegedly engaged in insider trading. One of our colleaguescomments, “The ability to achieve high profits from insider tradingdemonstrates that stock markets are not informationally efficient”. In 50 words or less, explain why you agree or disagree.7. A mining company knows that eight years fromnow it will be required to pay $4,000,000 per year to restore thesite of a major mine. It is unsure as to how many of theseannual payments will be required, but it knows that these paymentsare likely to be required for many years. The first of theannual payments will occur at the end of year eight. To meet theseobligations, the company invests $10,224,000 today. Assuming anannual interest rate of 12% for all years, for how many years willthe firm be able to make the annual payments of $4,000,000?8. You are interviewing for a job with a majorairline. The job description mentions that the position willinvolve a) doing short-term financial modeling and b) managingrelationships with the firm’s banks and other lenders. To assess your understanding of corporate finance, theinterviewer asks you, “How can short-term financial modeling beused as part of the process of managing relationships with banksand other lenders?”. Using less than 50 words, provide aresponse to the interviewer’s question.