Homework Answers
| EBIT ($ Mn.) | ||
| Boom (A) | 560 | |
| Base (B) | 125 | |
| Bust ( C) | -200 | |
| Outstanding shares (D) | 82000000 | |
| Mkt. Price/Share ($) ( E) | 8.74 | |
| ANSWERS | ||
| Part 1 | 6.82926829 | =A*1000000/D |
| Part 2 | -2.4390244 | =C*1000000/D |
| Part 3 | ||
| Bonds issued ($) (F) | 39000000 | |
| No. of shares bought back | 4462242.56 | =F/E |
| = Rounded off to less of (G) | Approx. 4462242 | |
| Outstanding shares now (H) | 86462242 | =D+G |
| Part 4 | ||
| Interest on Debt (I) | 9% | |
| EBIT now in Boom (J) | 556490000 | =(A*1000000)-(F*I) |
| EPS Now ($) | 6.43621987 | =J/H |
| Part 5 | ||
| EBIT now in Bust (K) | -203510000 | =(C*1000000)-(F*I) |
| EPS Now ($) | -2.3537442 | =K/H |
Add Answer to:
Intro Zambezi Corp. expects EBIT to vary with the state of the economy as follows: State...
Please do all parts Intro In the most recent year (2019), UPipe had an EBIT of...
Please do all parts
Intro In the most recent year (2019), UPipe had an EBIT of $220 million. Depreciation was $44 million, increase in net operating working capital was $22 million and capital expenditure was $55 million. Over the next 4 years, EBIT is expected to grow by 20% per year, depreciation by 15% per year, capital expenditure by 25% per year and change in net operating working capital by 15% per year. The annual free cash flow is expected...
Intro You've collected the following information about a company Value Line item Sales Costs Depreciation Interest...
Intro You've collected the following information about a company Value Line item Sales Costs Depreciation Interest The company's average tax rate is 13%. B Attempt 2/10 for 8 pts. Part 1 What is EBIT? Correct v EBIT = Sales - Costs - Depreciation = 160 - 30 - 10 = 120 Part 2 IS- Attempt 4/10 for 6 pts. What is net income? tecime Submit Intro You've collected the folowing information about a company Value 660 Line item Sales Costs...
Intro Bubble Tree Inc. had a taxable income of $380,000 last year. Its average tax rate...
Intro Bubble Tree Inc. had a taxable income of $380,000 last year. Its average tax rate is 27% and it paid out $120,000 in dividends to preferred stockholders. The company has 16,000 shares of common stock outstanding. Part 1 IS Attempt 1/10 for 10 pts. What were Bubble Tree's earnings per share of common stock (EPS)? 1+ decimals Submit Part 2 - Attempt 1/10 for 10 pts. If Bubble Tree pays out a dividend of $7.87 for each share of...
Intro Epson expects the following financial data during the coming year. • Assets: $120,000 • Total...
Intro Epson expects the following financial data during the coming year. • Assets: $120,000 • Total debt ratio = Debt/Assets (book values): 30% EBIT: $49,000 • Interest rate: 6% • Tax rate: 34% JB Attempt 1/10 for 10 pts. Part 1 What is the firm's expected ROE? 3+ decimals Submit Intro Use the following information to answer the questions: Assets Cash Marketable securities Accounts receivable Inventory Current assets Machines 12,000 2,000 6,000 33,000 53,000 34,000 80,000 114,000 167,000 Liabilities and...
Intro Nollaney Corp. had $43,000 in cash at the end of 2013 and $72,000 at the...
Intro Nollaney Corp. had $43,000 in cash at the end of 2013 and $72,000 at the end of 2014. The firm invested a total of $222,000 in property, plant, and equipment. Total cash flow from financing activities was +$260,000. Attempt 1/10 for 10 pts. Part 1 What was the cash flow from operating activities? No decimals Submit Attempt 1/10 for 10 pts. Part 2 If accounts receivable and inventories increased by $85,000 (total), accounts payable increased by $14.000, and depreciation...
Intro LongGone Corp. had total operating expenses of $84 million last year, including depreciation, and paid...
Intro LongGone Corp. had total operating expenses of $84 million last year, including depreciation, and paid $5.2 million in interest. The company also paid out $51 million in dividends, while the addition to retained earnings increased equity by 80%. The average tax rate was 34% and the average interest rate on the company's debt was 6.7%. The payout ratio was 30%. Part 1 What was the profit margin? E Attempt 1/10 for 12 pts. 3+ decimals Submit Attempt 1/10 for...
Intro Pro Build Inc. has had a net income of $16 million in its most recent...
Intro Pro Build Inc. has had a net income of $16 million in its most recent year. Net income is expected to grow by 3% per year. The firm always pays out 30% of net income as dividends and has 5 million shares of common stock outstanding. The required return is 8%. Attempt 1/1 for 10 pts. Part 1 What is the current stock price? 11+ decimals Submit DA amilala BOND MacBook Pro
2 in particular st outstanding and a total market C(Questions 1-13) 1. EBIT and Leverage. Kaelea,...
2 in particular
st outstanding and a total market C(Questions 1-13) 1. EBIT and Leverage. Kaelea, Inc., has no debt outstanding and a to value of $194,775. Earnings before interest and taxes, EBIT, are proiecte $13,800 if economic conditions are normal. If there is strong expansion in economy, then EBIT will be 20 percent higher. If there is a recession, then EDT will be 35 percent lower. The company is considering a $39,750 debt issue with an interest rate of...
Problem 13-2 EBIT, Taxes, and Leverage [LO 2] Kaelea, Inc., has no debt outstanding and a...
Problem 13-2 EBIT, Taxes, and Leverage [LO 2] Kaelea, Inc., has no debt outstanding and a total market value of $100,000. Earnings before interest and taxes, EBIT, are projected to be $8,400 if economic conditions are normal. If there is strong expansion in the economy, then EBIT will be 24 percent higher. If there is a recession, then EBIT will be 31 percent lower. The company is considering a $35,000 debt issue with an interest rate of 6 percent. The...
Ghost, Inc., has no debt outstanding and a total market value of $220,000. Earnings before interest and taxes, EBIT, ar...
Ghost, Inc., has no debt outstanding and a total market value of $220,000. Earnings before interest and taxes, EBIT, are projected to be $40,000 if economic conditions are normal. If there is strong expansion in the economy, then EBIT will be 10 percent higher. If there is a recession, then EBIT will be 20 percent lower. The company is considering a $135,000 debt issue with an interest rate of 4 percent. The proceeds will be used to repurchase shares of...
Please do all parts
Intro In the most recent year (2019), UPipe had an EBIT of $220 million. Depreciation was $44 million, increase in net operating working capital was $22 million and capital expenditure was $55 million. Over the next 4 years, EBIT is expected to grow by 20% per year, depreciation by 15% per year, capital expenditure by 25% per year and change in net operating working capital by 15% per year. The annual free cash flow is expected...
Intro You've collected the following information about a company Value Line item Sales Costs Depreciation Interest The company's average tax rate is 13%. B Attempt 2/10 for 8 pts. Part 1 What is EBIT? Correct v EBIT = Sales - Costs - Depreciation = 160 - 30 - 10 = 120 Part 2 IS- Attempt 4/10 for 6 pts. What is net income? tecime Submit Intro You've collected the folowing information about a company Value 660 Line item Sales Costs...
Intro Bubble Tree Inc. had a taxable income of $380,000 last year. Its average tax rate is 27% and it paid out $120,000 in dividends to preferred stockholders. The company has 16,000 shares of common stock outstanding. Part 1 IS Attempt 1/10 for 10 pts. What were Bubble Tree's earnings per share of common stock (EPS)? 1+ decimals Submit Part 2 - Attempt 1/10 for 10 pts. If Bubble Tree pays out a dividend of $7.87 for each share of...
Intro Epson expects the following financial data during the coming year. • Assets: $120,000 • Total debt ratio = Debt/Assets (book values): 30% EBIT: $49,000 • Interest rate: 6% • Tax rate: 34% JB Attempt 1/10 for 10 pts. Part 1 What is the firm's expected ROE? 3+ decimals Submit Intro Use the following information to answer the questions: Assets Cash Marketable securities Accounts receivable Inventory Current assets Machines 12,000 2,000 6,000 33,000 53,000 34,000 80,000 114,000 167,000 Liabilities and...
Intro Nollaney Corp. had $43,000 in cash at the end of 2013 and $72,000 at the end of 2014. The firm invested a total of $222,000 in property, plant, and equipment. Total cash flow from financing activities was +$260,000. Attempt 1/10 for 10 pts. Part 1 What was the cash flow from operating activities? No decimals Submit Attempt 1/10 for 10 pts. Part 2 If accounts receivable and inventories increased by $85,000 (total), accounts payable increased by $14.000, and depreciation...
Intro LongGone Corp. had total operating expenses of $84 million last year, including depreciation, and paid $5.2 million in interest. The company also paid out $51 million in dividends, while the addition to retained earnings increased equity by 80%. The average tax rate was 34% and the average interest rate on the company's debt was 6.7%. The payout ratio was 30%. Part 1 What was the profit margin? E Attempt 1/10 for 12 pts. 3+ decimals Submit Attempt 1/10 for...
Intro Pro Build Inc. has had a net income of $16 million in its most recent year. Net income is expected to grow by 3% per year. The firm always pays out 30% of net income as dividends and has 5 million shares of common stock outstanding. The required return is 8%. Attempt 1/1 for 10 pts. Part 1 What is the current stock price? 11+ decimals Submit DA amilala BOND MacBook Pro
2 in particular
st outstanding and a total market C(Questions 1-13) 1. EBIT and Leverage. Kaelea, Inc., has no debt outstanding and a to value of $194,775. Earnings before interest and taxes, EBIT, are proiecte $13,800 if economic conditions are normal. If there is strong expansion in economy, then EBIT will be 20 percent higher. If there is a recession, then EDT will be 35 percent lower. The company is considering a $39,750 debt issue with an interest rate of...
Ghost, Inc., has no debt outstanding and a total market value of $220,000. Earnings before interest and taxes, EBIT, are projected to be $40,000 if economic conditions are normal. If there is strong expansion in the economy, then EBIT will be 10 percent higher. If there is a recession, then EBIT will be 20 percent lower. The company is considering a $135,000 debt issue with an interest rate of 4 percent. The proceeds will be used to repurchase shares of...
Most questions answered within 3 hours.
-
Please use Barney's VRIO framework of analysis to evaluate a
firm's competencies. Please choose a specific...
asked 1 minute ago -
Where would you expect to have diabetes contributing to the most
DALYs in 2035, according to...
asked 2 minutes ago -
1.) Major league baseball salaries averaged $1.5 million with a
standard deviation of $1 million in...
asked 11 minutes ago -
A hedge fund is holding a three-year,
$10 million face value 6 percent annual coupon bond...
asked 23 minutes ago -
The focal length of a makeup (concave) mirror is 0.48 m. What
magnification does this mirror...
asked 27 minutes ago -
TRUE/FALSE
Long-lived assets that are tangible in nature, used in the
operations of the business, and...
asked 28 minutes ago -
A dragon biologist is setting up an experimental population of
1000 individuals. In dragons, pointy crests...
asked 39 minutes ago -
A uniform thin rod of length 0.851 m is hung from a horizontal
nail passing through...
asked 49 minutes ago -
A 747 has a cruising speed of 235 m/s at a height of 10,700
meters. The...
asked 57 minutes ago -
Part 3: Arrows
Write a python program that prompts the user for a number of
columns,...
asked 1 hour ago -
Need help answering these questions!!
1. What economic concept do you find most interesting in
Macroeconomics?...
asked 1 hour ago -
1. Nimbus, Inc. produces and sells brooms. This table shows the
relationship between the number of...
asked 1 hour ago