EBITDA — earnings before interest, taxes, depreciation, and amortization — is a measure of a company’s profitability. EBITDA is a company’s net earnings before subtracting expenses from interest payments, taxes, depreciation, and amortization.
Net Income $25000
Add back depreciation, and amortization $10000
EBITDA = $35000
Corporate Finance 1. The Kean Corporation has sales of $100,000, net income of $25,000 and depreciation...
Lavender Corporation has taxable income of $100,000 in 2018. It pays corporate tax of $21,000 ($100,000 3 21%). This leaves $79,000, all of which Lavender pays as a dividend to Mike. Mike is a 43-year-old single individual with no income sources other than Lavender Corporation. Mike has taxable income of $67,000 ($79,000 2 $12,000 standard deduction). He pays tax at the preferential rate applicable to qualified dividends received by individuals. His tax is $4,257 [($38,600 3 0%) 1 ($100 3...
Gopher Corporation reported taxable income of $500,000 this year. Gopher paid a dividend of $100,000 to its sole shareholder, Sven Anderson. The dividend meets the requirements to be a qualified dividend, and Sven is subject to a tax rate of 15 percent on the dividend. What is the income tax imposed on the corporate income earned by Gopher and the income tax on the dividend distributed to Sven?
Gopher Corporation reported taxable income of $500,000 this year. Gopher paid a dividend of $100,000 to its sole shareholder, Sven Anderson. The dividend meets the requirements to be a qualified dividend, and Sven is subject to a tax rate of 15 percent on the dividend. What is the income tax imposed on the corporate income earned by Gopher and the income tax on the dividend distributed to Sven? Corporate tax Shareholder tax PS 15.000 Total income tax Gopher Corporation reported...
Corporate finance questions, revision part 1 week 1-4, ZY . An amount of $121.000 is expected to be received one year from today at an interest rate (discount rate) of 10% per year. What is the present value of $121,000? smith invests in an project and he expects to receive $100,000 at the end of one year, at a discount rate of 25% per year, how much money at least he needs to invests now? 3. If the present value...
Corporate Finance I You are running a hot Internet pharmacy company. Analysts predict that its earnings will grow at 30% per year for the next five years. After that, as competition increases, earnings growth is expected to slow to 2% per year and continue at that level forever. Your company has just announced earnings of $1,000,000. What is the present value of all future earnings if the interest rate is 8%? (Assume all cash flows occur at the end of...
Plank’s Plants had net income of $10,000 on sales of $100,000 last year. The firm paid a dividend of $400. Total assets were $600,000, of which $300,000 was financed by debt. a. What is the firm’s sustainable growth rate? (Do not round intermediate calculations. Enter your answer as a percent rounded to 1 decimal place.) b. If the firm grows at its sustainable growth rate, how much debt will be issued next year? (Do not round intermediate calculations.) c. What...
Corporate Finance Assignment Decision Tree AZ Corporation’s R&D division has just synthesized a carbon nanotube material that will superconduct electricity at room temperature; you have given the go-ahead to try to produce this material commercially. It will take five years to find out whether the material is commercially viable, and you estimate that the probability of success is 25%. Development will cost $1 million per year, paid at the beginning of each year. If development is successful and you decide...
corporate finance
show workings
Floro Corporation has 8,000,000 shares outstanding with a Market price of K3 per share. The company's' board of directors have decided to pay 60% of its last net earnings of k20,0000.0000 either as a cash dividend of stock repurchase. What are the effects on the corporation's Price Earnings of i. ii. Cash dividend Stock repurchase
Fraser Corporation has announced that its net income for the year ended June 30, 2017, was 1,345,610. The company had EBITDA of 4,939,734, and its depreciation and amortization expense was equal to 1,256,753. The company’s average tax rate is 21 percent. What was its interest expense?
corporate finance.
kindly show manual calculations
Question 1. Aretha Corporation has 8000000 Shares out standing with a market price of * 3.75 per Share. The company's board of directors has decaded to pay 60% of its last net earnings of $20,000,ooo either as Cash dividend or stock repurchase. Required (a show the effect of a cash dividend on the Corporations price earnings Ratio (4 marks] b . show how the effect of a stock re-purchase on the Corporations price earnings...