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a. . Use the following information quoted in millions of dollars. Short-term borrowing (notes payable) $1,000...

a.

. Use the following information quoted in millions of dollars.

Short-term borrowing (notes payable) $1,000

Long-term debt (Bonds) 3,000

Stockholders’ Equity 8,000

Calculate the firm’s enterprise value. Short-term and Long-term debt are equal to market value. The

firm has 800 million shares trading for a price per share of $40. Calculate the firm’s enterprise value.

b.

5. A firm reported a $250 million increase in cash flow over a year. It also reported $310 million in cash

flow from Operations, and a Net dividends of $90 million paid out to claimants in financing activities.

Calculate the sign and amount of cash flow from investment

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