Homework Answers
Economic value added = NOPAT-Operating capital×After tax cost of debt
= $4,000,000×(1-40%)-$7,000,000×10%
= $2,400,000-$700,000
= $1,700,000
Hence, correct option is $1,700,000
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D | Question 42 1 pts Scranton Shipyards has $7.0 million in total invested operating capital,...
Scranton Shipyards has $8.5 million in total invested operating capital, and its WACC is 10%. Scranton...
Scranton Shipyards has $8.5 million in total invested operating capital, and its WACC is 10%. Scranton has the following income statement: Sales $10.0 million Operating costs 6.0 million Operating income (EBIT) $4.0 million Interest expense 2.0 million Earnings before taxes (EBT) $ 2.0 million Taxes (25%) 0.5 million Net income $ 1.5 million What is Scranton's EVA? Answer options are provided in whole dollar. $1,472,500 $1.860,000 $1,937.500 $2.956,500
Gebze Shipyards has $11.0 million in total invested operating capital, and its WACC is 9%. Gebze...
Gebze Shipyards has $11.0 million in total invested operating capital, and its WACC is 9%. Gebze has the following income statement: Sales $12.0 million Operating costs 6.0 million Operating income (EBIT) $ 6.0 million Interest expense 2.0 million Earnings before taxes (EBT) $ 4.0 million Taxes (20%) 0.8 million Net income $ 3.2 million What is Gebze’s EVA?
1. Gebze Shipyards has $15.0 million in total invested operating capital, and its WACC is 10%....
1. Gebze Shipyards has $15.0 million in total invested operating capital, and its WACC is 10%. Gebze has the following income statement: Sales $12.0 million Operating costs 6.0 million Operating income (EBIT) $ 6.0 million Interest expense 2.0 million Earnings before taxes (EBT) $ 4.0 million Taxes (20%) 0.8 million Net income $ 3.2 million What is Gebze’s EVA? 2. GTYOC Aviation had a profit margin of 8.00%, a total assets turnover of 1.5, and an equity multiplier of 2.0....
D Question 37 1 pts Brown Office Supplies recently reported $19,500 of sales, $8,250 of operating...
D Question 37 1 pts Brown Office Supplies recently reported $19,500 of sales, $8,250 of operating costs other than depreciation, and $1,750 of depreciation. It had $9,000 of bonds outstanding that carry a 7.0% interest rate, and its federal-plus-state income tax rate was 40%. How much was the firm's earnings before taxes (EBT)? $10,378 $10,.201 $8,870 $9,580 o $8,515 F6 FS. 3 4 5 7
D Question 40 1 pts C. F. Lee Inc. has the following income statement. How much...
D Question 40 1 pts C. F. Lee Inc. has the following income statement. How much after-tax operating income does the firm have? Sales Costs Depreciation EBIT Interest expense EBT Taxes (35%) Net income $3,100.00 1,850.00 192.00 $1,058.00 285.00 $773.00 270.55 S502.45 $845.87 $680.82 O $825.24 $687.70 $584,55 Previous Next FS F6 F3 19
Charles Underwood Agency Inc. has an expected net operating profit after taxes, EBIT(1-1), of $14,200 million...
Charles Underwood Agency Inc. has an expected net operating profit after taxes, EBIT(1-1), of $14,200 million in the coming year. In addition, the firm is expected to have net capital expenditures of $2,130 million, and net operating working capital (NOWC) is expected to increase by $35 million How much free cash flow (FCF) is Charles Underwood Agency Inc. expected to generate over the next year? $16,295 million $288,976 million $12,105 million $12,035 million Charles Underwood Agency Inc.'s FCFs are expected...
Complete the excel. INCOME STATEMENT 1 Sales 2 COGS 3 Depreciation expense 4 Total operating costs...
Complete the excel.
INCOME STATEMENT 1 Sales 2 COGS 3 Depreciation expense 4 Total operating costs 5 EBIT 6 Less interest 7 Earnings before taxes (EBT) 8 Taxes (40%) 11 Net Income 12 Shares of common equity 13 Dividends per share 14 Dividends to common 15 Additions to retained earnings Actual 2016 $ 7,500.00 $ 5,625.00 375.00 6,000.00 1,500.00 63.00 1,437.00 574.80 862.20 62.50 $ 2.50 $ 156.25 $ 705.95 Actual 2016 30.00 543.75 787.50 1,361.25 1,350.00 2,711.25 BALANCE SHEET...
this is business 241 question... need help P 10-8 (similar to) Sora Industries has 65 million outstanding shares, $123 million in debt, $46 million in cash, and the following projected free ca...
this is business 241 question... need help
P 10-8 (similar to) Sora Industries has 65 million outstanding shares, $123 million in debt, $46 million in cash, and the following projected free cash flow for the next four years: Year012 3 4 Earnings and FCF Forecast (s million) 1 Sales 433.0 468.0 516.0547.0 574.3 2 Growth vs. Prior Year 8.1% 10.3% 6.0% 5.0% 3 Cost of Goods Sold 4 Gross Profit (313.6) (345.7) (366.5) (384.8) 154.4 180.5 (93.6) (103.2) (109.4) (114.9)...
Determine the Value of the firm PNC using Discount CashFlow. Table 1. Balance Sheets, PNC and Industry ($ in Thousands...
Determine the Value of the firm PNC using Discount
CashFlow.
Table 1. Balance Sheets, PNC and Industry ($ in Thousands) PNC Benchmark Companies % of Assets 2002 2003 2004 $346 $507 $2,017 $3,622 $6,492 $14,512 $21,004 Cash ST securities Accounts receivable Inventories Current assets Net fixed assets Total assets % of Sales $478 $700 $2,786 $5,002 $8,966 $15,208 $24,174 $625 $625 $3,852 $6,023 $11,125 $18,098 $29,223 2.85% 1.00% 0.01% 5.00% 9.00% 15.01% 20.10% 0.01% 14.24% 25.64% 42.74% 57.26% 100.00% 35.11%...
5) Prepare An Analysis Of Market Strength by calculating for each company the: a) price/earnings ratio b) dividend yield 6) Once you have completed the first 5 steps, write a 1-2 page analysis of the...
5) Prepare An Analysis Of Market Strength by calculating for
each company the: a) price/earnings ratio b) dividend yield 6) Once
you have completed the first 5 steps, write a 1-2 page analysis of
the Buckle . What is the strengths, weaknesses, etc.? Why would you
invest ot not?
Information for #6 :
2) Prepare a Profitability And Total Asset Management Analysis
by calculating for each company the: a) profit margin b) asset
turnover c) return on assets
A) Profit...
Scranton Shipyards has $8.5 million in total invested operating capital, and its WACC is 10%. Scranton has the following income statement: Sales $10.0 million Operating costs 6.0 million Operating income (EBIT) $4.0 million Interest expense 2.0 million Earnings before taxes (EBT) $ 2.0 million Taxes (25%) 0.5 million Net income $ 1.5 million What is Scranton's EVA? Answer options are provided in whole dollar. $1,472,500 $1.860,000 $1,937.500 $2.956,500
D Question 37 1 pts Brown Office Supplies recently reported $19,500 of sales, $8,250 of operating costs other than depreciation, and $1,750 of depreciation. It had $9,000 of bonds outstanding that carry a 7.0% interest rate, and its federal-plus-state income tax rate was 40%. How much was the firm's earnings before taxes (EBT)? $10,378 $10,.201 $8,870 $9,580 o $8,515 F6 FS. 3 4 5 7
D Question 40 1 pts C. F. Lee Inc. has the following income statement. How much after-tax operating income does the firm have? Sales Costs Depreciation EBIT Interest expense EBT Taxes (35%) Net income $3,100.00 1,850.00 192.00 $1,058.00 285.00 $773.00 270.55 S502.45 $845.87 $680.82 O $825.24 $687.70 $584,55 Previous Next FS F6 F3 19
Charles Underwood Agency Inc. has an expected net operating profit after taxes, EBIT(1-1), of $14,200 million in the coming year. In addition, the firm is expected to have net capital expenditures of $2,130 million, and net operating working capital (NOWC) is expected to increase by $35 million How much free cash flow (FCF) is Charles Underwood Agency Inc. expected to generate over the next year? $16,295 million $288,976 million $12,105 million $12,035 million Charles Underwood Agency Inc.'s FCFs are expected...
Complete the excel.
INCOME STATEMENT 1 Sales 2 COGS 3 Depreciation expense 4 Total operating costs 5 EBIT 6 Less interest 7 Earnings before taxes (EBT) 8 Taxes (40%) 11 Net Income 12 Shares of common equity 13 Dividends per share 14 Dividends to common 15 Additions to retained earnings Actual 2016 $ 7,500.00 $ 5,625.00 375.00 6,000.00 1,500.00 63.00 1,437.00 574.80 862.20 62.50 $ 2.50 $ 156.25 $ 705.95 Actual 2016 30.00 543.75 787.50 1,361.25 1,350.00 2,711.25 BALANCE SHEET...
this is business 241 question... need help
P 10-8 (similar to) Sora Industries has 65 million outstanding shares, $123 million in debt, $46 million in cash, and the following projected free cash flow for the next four years: Year012 3 4 Earnings and FCF Forecast (s million) 1 Sales 433.0 468.0 516.0547.0 574.3 2 Growth vs. Prior Year 8.1% 10.3% 6.0% 5.0% 3 Cost of Goods Sold 4 Gross Profit (313.6) (345.7) (366.5) (384.8) 154.4 180.5 (93.6) (103.2) (109.4) (114.9)...
Determine the Value of the firm PNC using Discount
CashFlow.
Table 1. Balance Sheets, PNC and Industry ($ in Thousands) PNC Benchmark Companies % of Assets 2002 2003 2004 $346 $507 $2,017 $3,622 $6,492 $14,512 $21,004 Cash ST securities Accounts receivable Inventories Current assets Net fixed assets Total assets % of Sales $478 $700 $2,786 $5,002 $8,966 $15,208 $24,174 $625 $625 $3,852 $6,023 $11,125 $18,098 $29,223 2.85% 1.00% 0.01% 5.00% 9.00% 15.01% 20.10% 0.01% 14.24% 25.64% 42.74% 57.26% 100.00% 35.11%...
5) Prepare An Analysis Of Market Strength by calculating for
each company the: a) price/earnings ratio b) dividend yield 6) Once
you have completed the first 5 steps, write a 1-2 page analysis of
the Buckle . What is the strengths, weaknesses, etc.? Why would you
invest ot not?
Information for #6 :
2) Prepare a Profitability And Total Asset Management Analysis
by calculating for each company the: a) profit margin b) asset
turnover c) return on assets
A) Profit...
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