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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 Preview

    a) Formula

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

    Net Financial Obligations = Financial Debt - Financial Asset

    Given ...

    Solution Summary

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