Homework Answers
Correct answer: $8,000
Free Cash Flow to Firm (FCFF):
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A firm has sales of $50,000, EBIT of $10,000, depreciation of $4,000, and fixed assets increased...
A firm has sales of $10,000, EBIT of $3,000, depreciation of $400, and fixed assets increased...
A firm has sales of $10,000, EBIT of $3,000, depreciation of $400, and fixed assets increased by $2,000. If the firm's tax rate is 30 percent and there were no increases in net operating working capital, what is the firm's free cash flow? Multiple Choice $500 $600 $7400 -$1,220
A firm has sales of $21,000, EBIT of $9,000, depreciation of $3,000, and fixed assets increased...
A firm has sales of $21,000, EBIT of $9,000, depreciation of $3,000, and fixed assets increased by $4,000. If the firm's tax rate is 30 percent and a $2,000 increase in net operating working capital, what is the firm's free cash flow?
A firm has sales of $10,901, EBIT of $3,621, depreciation of $3,681, and fixed assets increased...
A firm has sales of $10,901, EBIT of $3,621, depreciation of $3,681, and fixed assets increased by $3,386. If the firm's tax rate is 30 percent and there were no increases in net working capital, what is the firm's free cash flow?
A firm has sales of $11,324, EBIT of $3,333, depreciation of $4,850, and fixed assets increased...
A firm has sales of $11,324, EBIT of $3,333, depreciation of $4,850, and fixed assets increased by $3,118. If the firm's tax rate is 30 percent and there were no increases in net working capital, what is the firm's free cash flow?
Multiple Choice: Problems (252-50) Firm MMA has EBIT (operating income) of $3 million, depreciation of $1...
Multiple Choice: Problems (252-50) Firm MMA has EBIT (operating income) of $3 million, depreciation of $1 million. Pirm a s expenditures on fixed anneta - $1 million. Its net operating working capital - $0.6 million.Calculate for free cash flow. Imagine that the tax rate 40t. a. 91.2 b. $1.3 c. $1.4 Firm AAA's sales - $150,000, operating costs (no depreciation) - $75.500. Depreciation - $10,200, Tax rate 35. Pirm M b ond value is $16,500 and the interest rate of...
A- Consider a firm that reports the reports the following: sales $274,691, cost of goods sold $105,479...
A- Consider a firm that reports the reports the following: sales $274,691, cost of goods sold $105,479 and interest expense of $74,140. The firm has depreciation expense $57,257 and a 15% tax rate. During the last year the firm had an increase in gross fixed assets of $123,964 and a decrease in net operating working capital of $21,169. Calculate the firm's free cash flow. Your answer should be in dollars. So $30 million should be $30,000,000 B- Your firm has the following income statement...
Eagle Products' EBIT is $560, its tax rate is 35%, depreciation is $30, capital expenditures are...
Eagle Products' EBIT is $560, its tax rate is 35%, depreciation is $30, capital expenditures are $70, and the planned increase in net working capital is $36. What is the free cash flow to the firm? Free cash flow
. A firm has the financial information shown below. The average tax rate is 30%. The...
. A firm has the financial information shown below. The average tax rate is 30%. The plowback ratio is 50%. Calculate OCF, NCS, change in NWC, CFS, CFC, and FCF. Income Statement Revenues Cost of Goods Sold Other operating expenses Depreciation expense EBIT Interest Expense Taxable Income 2019 $20,000 $10,000 $1,000 $3,000 $6,000 $3,200 $2800 $840 $1,960 Taxes Net income 2020 2019 2020 Balance Sheet 2019 $12,000 Current Liabilities $9,000 $8,000 Current Assets $10,000 $88,000 Long-term debt $80,000 $186,000 Total...
Nebula Corp's most recent earnings before interest and taxes (EBIT) was $29 mil- lion. They increased...
Nebula Corp's most recent earnings before interest and taxes (EBIT) was $29 mil- lion. They increased their net working capital by $4 million and invested $10 million in fixed assets. The firm's tax rate is 21%. The firm has 100 million shares outstanding and $57 million in long term debt. The firm has $18 million in cash and cash equivalents. What is Nebula's intrinsic value if we assume a weighted average cost of capital of 14% and their free cash...
17. A company recently reported it had, in millions, $10,000 of sales, $5,000 of operating costs...
17. A company recently reported it had, in millions, $10,000 of sales, $5,000 of operating costs other than depreciation, and $1,000 of depreciation. The company has $4,000 of outstanding bonds that carry a 5% interest rate, and a federal-plus-state corporate income tax rate of 25%. In order to sustain its operations and thus generate future sales and cash flows, the company was required to make a $2,000 of capital expenditures on new fixed assets and to invest S500 in net...
A firm has sales of $11,324, EBIT of $3,333, depreciation of $4,850, and fixed assets increased by $3,118. If the firm's tax rate is 30 percent and there were no increases in net working capital, what is the firm's free cash flow?
Multiple Choice: Problems (252-50) Firm MMA has EBIT (operating income) of $3 million, depreciation of $1 million. Pirm a s expenditures on fixed anneta - $1 million. Its net operating working capital - $0.6 million.Calculate for free cash flow. Imagine that the tax rate 40t. a. 91.2 b. $1.3 c. $1.4 Firm AAA's sales - $150,000, operating costs (no depreciation) - $75.500. Depreciation - $10,200, Tax rate 35. Pirm M b ond value is $16,500 and the interest rate of...
Eagle Products' EBIT is $560, its tax rate is 35%, depreciation is $30, capital expenditures are $70, and the planned increase in net working capital is $36. What is the free cash flow to the firm? Free cash flow
. A firm has the financial information shown below. The average tax rate is 30%. The plowback ratio is 50%. Calculate OCF, NCS, change in NWC, CFS, CFC, and FCF. Income Statement Revenues Cost of Goods Sold Other operating expenses Depreciation expense EBIT Interest Expense Taxable Income 2019 $20,000 $10,000 $1,000 $3,000 $6,000 $3,200 $2800 $840 $1,960 Taxes Net income 2020 2019 2020 Balance Sheet 2019 $12,000 Current Liabilities $9,000 $8,000 Current Assets $10,000 $88,000 Long-term debt $80,000 $186,000 Total...
Nebula Corp's most recent earnings before interest and taxes (EBIT) was $29 mil- lion. They increased their net working capital by $4 million and invested $10 million in fixed assets. The firm's tax rate is 21%. The firm has 100 million shares outstanding and $57 million in long term debt. The firm has $18 million in cash and cash equivalents. What is Nebula's intrinsic value if we assume a weighted average cost of capital of 14% and their free cash...
17. A company recently reported it had, in millions, $10,000 of sales, $5,000 of operating costs other than depreciation, and $1,000 of depreciation. The company has $4,000 of outstanding bonds that carry a 5% interest rate, and a federal-plus-state corporate income tax rate of 25%. In order to sustain its operations and thus generate future sales and cash flows, the company was required to make a $2,000 of capital expenditures on new fixed assets and to invest S500 in net...
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