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net financial assets; net operating assets

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A)A firm holding $432 million in interest-bearing financial assets and with financing debt of $1,891 million, reported shareholders' equity of $597 million. What were it net financial assets? What were its net operating assets?

b)The same firm reported $108 million in comprehensive income and net financial expense, after tax of $497 million. What was its after-tax operating income?

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Solution Summary

The solution calculates net financial assets, its net operating assets, and its after-tax income for a firm.

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a) Formula

Equity = Net Operating Assets(NOA) - Net Financial Obligations

Net Financial Obligations = Financial Debt - Financial Asset

Given ...

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