Homework Answers
Value of KMS $140 thousand
| Year | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | Cost Of Capital | 9.60% | ||
| FCFF | 7,634 | 5,788 | (15,630) | 5,389 | 6,467 | 7,649 | Growth rate | 0.29% | ||
| Continuation Value | - | - | - | - | - | 222,342 | NPV of FCFF | $12,149 | formula(=NPV(J1,B2:G2)) | |
| NPV of Continuation Value | $128,280 | formula(=NPV(J1,B3:G3)) | ||||||||
| Value of Firm | $140,429 |
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The table below gives the estimated tree cash flow under the 0.29% growth scenario. Using these...
The table below gives the estimated free cash flow under the 0.25% growth scenario. Using these...
The table below gives the estimated free cash flow under the 0.25% growth scenario. Using these estimates and assuming a cost of capital of 10.1%, compute the value of KMS. 2013 2014 2015 2016 2017 2018 Year Free Cash Flow (000) Free Cash Flow of Firm Continuation Value $7,617 $5,749 - 515,646 $5,355 $6,500 $7,656 S222,308 The Tax Cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation (effectively expensing capital expenditures). However, we will still include depreciation forecasting...
The table below gives the estimated free cash flow under the 0.25% growth scenario. Using these...
The table below gives the estimated free cash flow under the 0.25% growth scenario. Using these estimates and assuming a cost of capital of 10.1%, compute the value of KMS. 2013 2014 2015 2016 2017 2018 Year Free Cash Flow (000) Free Cash Flow of Firm Continuation Value $7,617 $5,749 - 515,646 $5,355 $6,500 $7,656 S222,308 The Tax Cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation (effectively expensing capital expenditures). However, we will still include depreciation forecasting...
The table below gives the estimated free cash flow under the 0.25% growth scenario. Using these...
The table below gives the estimated free cash flow under the 0.25% growth scenario. Using these estimates and assuming a cost of capital of 10.1%, compute the value of KMS. 2013 2014 2015 2016 2017 2018 Year Free Cash Flow (000) Free Cash Flow of Firm Continuation Value $7,617 $5,749 -515,646 $5,355 $6,500 $7,656 $222,308 The Tax Cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation (effectively expensing capital expenditures). However, we will still include depreciation forecasting in...
Calculate the continuation value of KMS using the following table and assuming an EBITDA multiple of 8.9. 20...
Calculate the continuation value of KMS using the following table and assuming an EBITDA multiple of 8.9. 2013 2014 2015 2016 2017 EBITDA (000) 2018 $26.171 $16497 $18.141 S19889 2 1728 $23842 The Tax Cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation (effectively expensing capital expenditures). However, we will still include depreciation forecasting in this chapter and in these problems in anticipation of the return of standard depreciation practices during your career The continuation value is thousand...
Your company has sales of $ 102 comma 800$102,800 this year and cost of goods sold...
Your company has sales of
$ 102 comma 800$102,800
this year and cost of goods sold of
$ 73 comma 900$73,900.
You forecast sales to increase to
$ 112 comma 500$112,500
next year. Using the percent of sales method, forecast next
year's cost of goods sold.
The Tax Cuts and Jobs Act of 2017 temporarily allows 100% bonus
depreciation (effectively expensing capital expenditures).
However, we will still include depreciation forecasting in this
chapter and in these problems in anticipation of...
Your company has sales of $107,200 this year and cost of goods sold of $70,000. You...
Your company has sales of $107,200 this year and cost of goods sold of $70,000. You forecast sales to increase to $117,400 next year. Using the percent of sales method, forecast next year's cost of goods sold. The Tax Cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation (effectively expensing capital expenditures). However, we will still include depreciation forecasting in this chapter and in these problems in anticipation of the return of standard depreciation practices during your career....
Your firm has an ROE of 11 7%, a payout ratio of 26%. S629, 700 of stockholders' equity, and S430,000 of debt sustainable growth rate this year, how much additional debt will you need to issu...
Your firm has an ROE of 11 7%, a payout ratio of 26%. S629, 700 of stockholders' equity, and S430,000 of debt sustainable growth rate this year, how much additional debt will you need to issue? t you grow at your The Tax cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation (effectively expensing capital expenditures However, we will still include depreciation forecasting in this chapter and in these problems in anticipation of the return of standard depreciation...
1.) Your company has sales of $ 90, 700 this year and cost of goods sold...
1.) Your company has sales of $ 90, 700 this year and cost of goods sold of $ 63,500. You forecast sales to increase to $ 111,700 next year. Using the percent of sales method, forecast next year's cost of goods sold. The Tax Cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation (effectively expensing capital expenditures). However, we will still include depreciation forecasting in this chapter and in these problems in anticipation of the return of standard...
2. For the next fiscal year, you forecast net income of $51,700 and ending assets of...
2. For the next fiscal year, you forecast net income of $51,700 and ending assets of $501,700. Your firm's payout ratio is 10.1%. Your beginning stockholders' equity is $297,700 and your beginning total liabilities are $119,000. Your non-debt liabilities such as accounts payable are forecasted to increase by $9,900. What is your net new financing needed for next year? The Tax Cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation (effectively expensing capital expenditures). However, we will still...
Using the information in the following table, calculate this company's $49,900 $395,900 $249,300 0% Net Income Begi...
Using the information in the following table, calculate this company's $49,900 $395,900 $249,300 0% Net Income Beginning Total Assets Beginning Stockholders Equity Payout Ratio a. Internal growth rate. b. Sustainable growth rate. c. Sustainable growth rate if it pays out 45% of its net income as a dividend The Tax Cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation (effectively expensing capital expenditures). However, we will still include depreciation forecasting in this chapter and in these problems in...
The table below gives the estimated free cash flow under the 0.25% growth scenario. Using these estimates and assuming a cost of capital of 10.1%, compute the value of KMS. 2013 2014 2015 2016 2017 2018 Year Free Cash Flow (000) Free Cash Flow of Firm Continuation Value $7,617 $5,749 - 515,646 $5,355 $6,500 $7,656 S222,308 The Tax Cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation (effectively expensing capital expenditures). However, we will still include depreciation forecasting...
The table below gives the estimated free cash flow under the 0.25% growth scenario. Using these estimates and assuming a cost of capital of 10.1%, compute the value of KMS. 2013 2014 2015 2016 2017 2018 Year Free Cash Flow (000) Free Cash Flow of Firm Continuation Value $7,617 $5,749 - 515,646 $5,355 $6,500 $7,656 S222,308 The Tax Cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation (effectively expensing capital expenditures). However, we will still include depreciation forecasting...
The table below gives the estimated free cash flow under the 0.25% growth scenario. Using these estimates and assuming a cost of capital of 10.1%, compute the value of KMS. 2013 2014 2015 2016 2017 2018 Year Free Cash Flow (000) Free Cash Flow of Firm Continuation Value $7,617 $5,749 -515,646 $5,355 $6,500 $7,656 $222,308 The Tax Cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation (effectively expensing capital expenditures). However, we will still include depreciation forecasting in...
Calculate the continuation value of KMS using the following table and assuming an EBITDA multiple of 8.9. 2013 2014 2015 2016 2017 EBITDA (000) 2018 $26.171 $16497 $18.141 S19889 2 1728 $23842 The Tax Cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation (effectively expensing capital expenditures). However, we will still include depreciation forecasting in this chapter and in these problems in anticipation of the return of standard depreciation practices during your career The continuation value is thousand...
Your company has sales of
$ 102 comma 800$102,800
this year and cost of goods sold of
$ 73 comma 900$73,900.
You forecast sales to increase to
$ 112 comma 500$112,500
next year. Using the percent of sales method, forecast next
year's cost of goods sold.
The Tax Cuts and Jobs Act of 2017 temporarily allows 100% bonus
depreciation (effectively expensing capital expenditures).
However, we will still include depreciation forecasting in this
chapter and in these problems in anticipation of...
Your company has sales of $107,200 this year and cost of goods sold of $70,000. You forecast sales to increase to $117,400 next year. Using the percent of sales method, forecast next year's cost of goods sold. The Tax Cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation (effectively expensing capital expenditures). However, we will still include depreciation forecasting in this chapter and in these problems in anticipation of the return of standard depreciation practices during your career....
Your firm has an ROE of 11 7%, a payout ratio of 26%. S629, 700 of stockholders' equity, and S430,000 of debt sustainable growth rate this year, how much additional debt will you need to issue? t you grow at your The Tax cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation (effectively expensing capital expenditures However, we will still include depreciation forecasting in this chapter and in these problems in anticipation of the return of standard depreciation...
2. For the next fiscal year, you forecast net income of $51,700 and ending assets of $501,700. Your firm's payout ratio is 10.1%. Your beginning stockholders' equity is $297,700 and your beginning total liabilities are $119,000. Your non-debt liabilities such as accounts payable are forecasted to increase by $9,900. What is your net new financing needed for next year? The Tax Cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation (effectively expensing capital expenditures). However, we will still...
Using the information in the following table, calculate this company's $49,900 $395,900 $249,300 0% Net Income Beginning Total Assets Beginning Stockholders Equity Payout Ratio a. Internal growth rate. b. Sustainable growth rate. c. Sustainable growth rate if it pays out 45% of its net income as a dividend The Tax Cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation (effectively expensing capital expenditures). However, we will still include depreciation forecasting in this chapter and in these problems in...
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