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Consider the following potential events that might have taken place at Vodafone Group Plc on 31 March, 2012

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Consider the following potential events that might have taken place at Vodafone Group Plc on 31 March, 2012. For each one, indicate which line items in Vodafone’s balance sheet would be affected and by how much. Also indicate the change to Vodafone’s book value of equity. (In all cases, ignore any tax consequences for simplicity.)

a.             Vodafone used £200 million of its available cash to repay £200 million of its long-term debt.

b.             A warehouse fire destroyed £50 million worth of uninsured inventory.

c. Vodafone used £50million in cash and £50million in new long-term debt to purchase a £100million of buildings worldwide.

d. A large customer owing £20million for products it already received declared bankruptcy, leaving no possibility that Vodafone would ever receive payment.

e. Vodafone’s engineers discover a new manufacturing process that will cut the cost of its flagship product by over 50%.

f. A key competitor announces a radical new pricing policy that will drastically undercut Vodafone’s prices.