Answer 1: | |||
Calculation of Free Cash Flows | |||
Revenue | $200 million | ||
Operating Profit Margin | 50% | ||
EBIT | $100 million | ||
(Revenue * Operating Profit Margin) | |||
Less: | |||
Tax @ 20% | ($20 million) | ||
$ 80 million | |||
Add: Non-cash expenses | |||
Depreciation & Amortization expenses | $30 million | ||
Less: | |||
Change in working capital | ($10 million) | ||
Capital Expenditure | ($30 million) | ||
Acquisition expenses | ($10 million) | ||
Free cash flows | $60 million | ||
Answer 2: | |||
Calculation of Free Cash Flows | |||
Revenue | $700 million | ||
Operating Profit Margin | 50% | ||
EBIT | $350 million | ||
(Revenue * Operating Profit Margin) | |||
Less: | |||
Tax @ 20% | ($70 million) | ||
$ 280 million | |||
Less: Reinvestment cash | ($ 224 million) | ||
($280 million * 80%) | |||
Free cash flows | $ 56 million | ||
I am sorry that I have uploaded more than one question, because I still have many...
I am sorry that I have uploaded more than one question, because I still have many questions, but there are no more questions. I hope you can help me answer this question. If you can only answer one question, please do not answer this question, thank you. 1 2 3 What is the free cash flow of a firm with revenues of $200 million, operating profit margin of 50%, tax rate of 20%, depreciation and amortization expense of $30 million,...
I am sorry that I have uploaded more than one question, because I still have many questions, but there are no more questions. I hope you can help me answer this question. If you can only answer one question, please do not answer this question, thank you. 1. 2. 3. 4. A company has announced total revenues of $200 million, gross profits of $150 million, operating income of $130 million, and net income of $60 million. What is its net...
I am sorry that I have uploaded more than one question, because I still have many questions, but there are no more questions. I hope you can help me answer this question. If you can only answer one question, please do not answer this question, thank you. 1 2 3 A company is projected to have a free cash flow of $300 million next year, growing at a 6.0% rate until the end of year 3. After that, cash flows...
I am sorry that I have uploaded more than one question, because I still have many questions, but there are no more questions. I hope you can help me answer this question. If you can only answer one question, please do not answer this question, thank you. 1 2 3 You are asked to value Gamecocks Inc. using the relative valuation method. Gamecocks Inc.'s earnings forecast for next year (EPS (next year)) is $2.44. The valuation and earnings of comparable...
1 2 What is the free cash flow of a firm with revenues of $200 million, operating profit margin of 50%, tax rate of 20%, depreciation and amortization expense of $30 million, capital expenditures of $30 million, acquisition expenses of $10 million and change in net working capital of $10 million? Answer in millions, rounded to one decimal place (e. $245.63 = 245.6). Numeric Answer: What's the FCFF of a company with total revenues of $700 million, operating profit margin...
I am sorry that I have uploaded more than one question, because I still have many questions, but there are no more questions. I hope you can help me answer this question. If you can only answer one question, please do not answer this question, thank you. and i need the hole slove process function 1. 2 Suppose a company has a stock price of $20.0 and has had earnings of $2.00 per share during the last twelve months. The...
I know you have a rule that you can only answer one question, but my time is running out and I still have a lot of questions to solve. Please give me an accommodation. If you just answer one question, please don't want to answer this question, please don't. 1 2 3 number 3 is same question with number 1, just answer 1and 2 What's the FCFF of a company with total revenues of $700 million, operating profit margin of...
I am sorry that I have uploaded more than one question, because I still have many questions, but there are no more questions. I hope you can help me answer this question. If you can only answer one question, please do not answer this question, thank you. 1. 2. Example 5.12: A company had total revenues of $200 million, operating profit margin of 20%, and depreciation and amortization expense of $10 million over the trailing twelve months. The company currently...
I am sorry that I have uploaded more than one question, because I still have many questions, but there are no more questions. I hope you can help me answer this question. If you can only answer one question, please do not answer this question, thank you. 1. 2 3 A zero-coupon bond has a face value of $1,000 and matures in 2 years. An auction reveals that investors require a(n) 7.0% annual return on this bond. What should be...
I know you have a rule that you can only answer one question, but my time is running out and I still have a lot of questions to solve. Please give me an accommodation. If you just answer one question, please don't want to answer this question, please don't. 1 2 A company is projected to generate free cash flows of $40 million per year for the next two years, after which it is projected grow at a steady rate...