Homework Answers
| 1- | |||
| Free cash flow | Free Cash Flow to Equity (FCFE) = Net Income - (Capital Expenditures - Depreciation) - (Change in Non-cash Working Capital) + (New Debt Issued - Debt Repayments) | 135-(55-35)-(350-270)+(70-50) | 55 |
| net income | 135 | ||
| working capital in 2018 | (500-150) | 350 | |
| working capital in 2017 | (350-80) | 270 | |
| 2- | |||
| Year | expected FCFE =current FCFE*(1+growth rate) | ||
| 2018 | 55 | ||
| 2019 | 55*1.25^1 | 68.75 | |
| 2020 | 55*1.25^2 | 85.9375 | |
| 2021 | 55*1.25^3 | 107.421875 | |
| 2022 | 107.42*1.1^1 | 118.162 | |
| Terminal value in 2021 | (expected FCFE in 2022)/(required return-growth rate) | 118.162/(15%-10%) | 2363.24 |
| terminal value per share in 2021= total terminal value/no of shares | 2363.24/100 | 23.6324 | |
| 3- | |||
| Year | cash flow | present value of cash flow at 15% =cash flow/(1+r)^n r =15% | |
| 2019 | 68.75 | 68.75/1.15^1 | 59.7826087 |
| 2020 | 85.9375 | 85.9375/1.15^2 | 64.98109641 |
| 2021 | 107.421875 | 107.42/1.15^3 | 70.63039369 |
| 2021 | 2363.24 | 2636.24/1.15^3 | 1733.370593 |
| present value of free cash flow to equity | 1928.764691 | ||
| present value per share | 1928.76/100 | 19.29 |
Add Answer to:
The following table is American Bank Income Statement Revenue owing table lists the Income statement and...
2. American Bank The following table lists the Income statement and Balance sheet for First Income...
2. American Bank The following table lists the Income statement and Balance sheet for First Income Statement Revenue 2017 2018 Balance Sheet 2017 2018 Depreciation Se90 S600 ss00 Current assets $350 30 Other operating costs 520 Prop. plant, & Equip. 500 400 $1.020 Income before taxes 480 Ses0 Total assets 150 $170 80 $175 Тахеs Current labilties 70 50 Long-term debt Total liabilities 30 40 Net income $220 $130 $140 $135 Dividends $800 $720 20 26 Shareholders' equity $1,020 Eamings...
Please show all work. 1. Statement of Cash Flows and Standardized Financial Statements a) Net income...
Please show all work. 1. Statement of Cash Flows and Standardized Financial Statements a) Net income for your firm was $10,000 last year. The depreciation expense was $2,500; accounts receivable increased $1,250; accounts payable increased $800; and inventories increased by $2,000. Identify the sources and uses of cash • What was the total cash flow from operations for the period? Operating activities = Net Income + Depreciation + Source (inflow) - Use foutflow) b) i) Prepare the 2018 common-size Income...
balance sheet and income statement (McDonalds 2017-2018) balance sheet and income statement mcdonald's corp 2017-2018 SU...
balance sheet and income statement (McDonalds 2017-2018)
balance sheet and income statement mcdonald's corp 2017-2018
SU PROFIT MARGIN NET INCOME = SALES EARNING PER SHARE= (IN MILLIONS OF DOLLARS) i'm lovin' it Notes Slide 10 of 11 PRICE EARNING RATIO PRICE PER SHARE Double tap to add text EPS McDonald's Corp. MCD (US:NYSE) MoD onalas P/E= $ $193.70 U USD 181 094% Velamer 3955951 age 156A33 10ay Range 9195-9185 16804-22193 (IN MILLIONS OF DOLLARS) AVANCED CTN COARE pen 200 Pr...
corporate Finance NU REYS (3) - Protected View - Last saved by user . Saved to...
corporate Finance NU REYS (3) - Protected View - Last saved by user . Saved to this PC W Be careful--files from the Internet can contain viruses. Unless you need to edit, it's safer to stay in Protected View Enable Editing Question 14_Calculate the capital expenditure, Free Cash Flow to Equity (FCFE) and FCFE per share for year 2000 (5 points) • What are year 2000's capital expenditures? Show your calcualtion (2 points) • Free Cash Flow to Equity for...
The following are financial statements of Vaughn Manufacturing. Vaughn Manufacturing Income Statement For the Year Ended...
The following are financial statements of Vaughn
Manufacturing.
Vaughn Manufacturing
Income Statement
For the Year Ended December 31, 2017
Net sales
$2,230,600
Cost of goods sold
1,028,200
Selling and administrative expenses
924,400
Interest expense
90,300
Income tax expense
70,610
Net income
$ 117,090
Vaughn Manufacturing
Balance Sheet
December 31, 2017
Assets
Current assets
Cash
$ 72,200
Debt investments
85,610
Accounts receivable (net)
189,000
Inventory
162,400
Total current assets
509,210
Plant assets (net)
591,100
Total assets
$ 1,100,310
Liabilities and Stockholders’...
The following is the balance sheet and income statement for Metro Eagle Outfitters, in condensed form,...
The following is the balance sheet and income statement for Metro Eagle Outfitters, in condensed form, plus some information from the cash flow statement. Balance Sheet 2019 2018 2017 Cash and short-term investments $ 645,992 $ 760,044 $ 749,693 Accounts receivable 47,821 41,810 39,721 Inventory 347,452 397,514 316,208 Other current assets 115,535 118,120 98,788 Total current assets 1,156,800 1,317,488 1,204,410 Long-lived assets 575,332 624,982 571,302 Total assets $ 1,732,132 $ 1,942,470 $ 1,775,712 Current liabilities $ 470,402 $ 450,401 $...
The following table shows an abbreviated income statement and balance sheet for Quick Burger Corporation for...
The following table shows an abbreviated income statement and balance sheet for Quick Burger Corporation for 2019. INCOME STATEMENT OF QUICK BURGER CORP., 2019 (Figures in $ millions) Net sales $ 27,580 Costs 17,582 Depreciation 1,415 Earnings before interest and taxes (EBIT) $ 8,583 Interest expense 530 Pretax income 8,053 Federal plus other taxes 2,819 Net income $ 5,234 201 2019 2018 $ $ - 3,416 3,416 $ 406 3,156 $ 3,562 Assets Current assets Cash and marketable securities Receivables...
The following table shows an abbreviated income statement and balance sheet for Quick Burger Corporation for...
The following table shows an abbreviated income statement and balance sheet for Quick Burger Corporation for 2019. INCOME STATEMENT OF QUICK BURGER CORP., 2019 (Figures in $ millions) $ 27,573 Net sales Costs 17,575 Depreciation Earnings before interest and taxes (EBIT) 1,408 $ 8,590 Interest expense 523 8,067 2,823 Pretax income Federal plus other taxes $ 5,244 Net income BALANCE SHEET OF QUICK BURGER CORP., 2019 (Figures in $ millions) Liabilities and Shareholders' Equity 2019 Assets 2019 2018 2018 Current...
2. Income Statement and Taxes a) Find the missing values for the income statement below: Fresno...
2. Income Statement and Taxes a) Find the missing values for the income statement below: Fresno Cleaners 2018 Income Statement Net sales Cost of goods sold Depreciation EBIT Interest paid Earnings before taxes Taxes 32% Net income Dividends paid Addition to retained earnings $ 68,700 51,300 4,600 ? 1,225 ? ? 3,400 ? 0 I b) If a firm has $300,000 in taxable income in both 2017 and 2018: What is the firm's tax liability for each year? What is...
The Balance Sheet and the Income Statement for ABC Manufacturing Corporation are as follows: DATA (All...
The Balance Sheet and the Income Statement for ABC Manufacturing Corporation are as follows: DATA (All amounts in SAR unless otherwise indicated, all sales are on credit and no hard keys.) Balance Sheet: ABC Corporation Balance Sheet 2019 Cash 310 Accounts receivable 685 Inventories 600 Other current assets 105 Total current assets 1,700 Gross fixed assets 3,750 Accumulated depreciation -1,500 Net fixed assets 2,250 Total assets 3,950 LIABILITIES (DEBT) AND EQUITY Accounts payable 350 Short-term notes payable 250 Total current...
2. American Bank The following table lists the Income statement and Balance sheet for First Income Statement Revenue 2017 2018 Balance Sheet 2017 2018 Depreciation Se90 S600 ss00 Current assets $350 30 Other operating costs 520 Prop. plant, & Equip. 500 400 $1.020 Income before taxes 480 Ses0 Total assets 150 $170 80 $175 Тахеs Current labilties 70 50 Long-term debt Total liabilities 30 40 Net income $220 $130 $140 $135 Dividends $800 $720 20 26 Shareholders' equity $1,020 Eamings...
Please show all work. 1. Statement of Cash Flows and Standardized Financial Statements a) Net income for your firm was $10,000 last year. The depreciation expense was $2,500; accounts receivable increased $1,250; accounts payable increased $800; and inventories increased by $2,000. Identify the sources and uses of cash • What was the total cash flow from operations for the period? Operating activities = Net Income + Depreciation + Source (inflow) - Use foutflow) b) i) Prepare the 2018 common-size Income...
balance sheet and income statement (McDonalds 2017-2018)
balance sheet and income statement mcdonald's corp 2017-2018
SU PROFIT MARGIN NET INCOME = SALES EARNING PER SHARE= (IN MILLIONS OF DOLLARS) i'm lovin' it Notes Slide 10 of 11 PRICE EARNING RATIO PRICE PER SHARE Double tap to add text EPS McDonald's Corp. MCD (US:NYSE) MoD onalas P/E= $ $193.70 U USD 181 094% Velamer 3955951 age 156A33 10ay Range 9195-9185 16804-22193 (IN MILLIONS OF DOLLARS) AVANCED CTN COARE pen 200 Pr...
corporate Finance NU REYS (3) - Protected View - Last saved by user . Saved to this PC W Be careful--files from the Internet can contain viruses. Unless you need to edit, it's safer to stay in Protected View Enable Editing Question 14_Calculate the capital expenditure, Free Cash Flow to Equity (FCFE) and FCFE per share for year 2000 (5 points) • What are year 2000's capital expenditures? Show your calcualtion (2 points) • Free Cash Flow to Equity for...
The following are financial statements of Vaughn
Manufacturing.
Vaughn Manufacturing
Income Statement
For the Year Ended December 31, 2017
Net sales
$2,230,600
Cost of goods sold
1,028,200
Selling and administrative expenses
924,400
Interest expense
90,300
Income tax expense
70,610
Net income
$ 117,090
Vaughn Manufacturing
Balance Sheet
December 31, 2017
Assets
Current assets
Cash
$ 72,200
Debt investments
85,610
Accounts receivable (net)
189,000
Inventory
162,400
Total current assets
509,210
Plant assets (net)
591,100
Total assets
$ 1,100,310
Liabilities and Stockholders’...
The following table shows an abbreviated income statement and balance sheet for Quick Burger Corporation for 2019. INCOME STATEMENT OF QUICK BURGER CORP., 2019 (Figures in $ millions) Net sales $ 27,580 Costs 17,582 Depreciation 1,415 Earnings before interest and taxes (EBIT) $ 8,583 Interest expense 530 Pretax income 8,053 Federal plus other taxes 2,819 Net income $ 5,234 201 2019 2018 $ $ - 3,416 3,416 $ 406 3,156 $ 3,562 Assets Current assets Cash and marketable securities Receivables...
The following table shows an abbreviated income statement and balance sheet for Quick Burger Corporation for 2019. INCOME STATEMENT OF QUICK BURGER CORP., 2019 (Figures in $ millions) $ 27,573 Net sales Costs 17,575 Depreciation Earnings before interest and taxes (EBIT) 1,408 $ 8,590 Interest expense 523 8,067 2,823 Pretax income Federal plus other taxes $ 5,244 Net income BALANCE SHEET OF QUICK BURGER CORP., 2019 (Figures in $ millions) Liabilities and Shareholders' Equity 2019 Assets 2019 2018 2018 Current...
2. Income Statement and Taxes a) Find the missing values for the income statement below: Fresno Cleaners 2018 Income Statement Net sales Cost of goods sold Depreciation EBIT Interest paid Earnings before taxes Taxes 32% Net income Dividends paid Addition to retained earnings $ 68,700 51,300 4,600 ? 1,225 ? ? 3,400 ? 0 I b) If a firm has $300,000 in taxable income in both 2017 and 2018: What is the firm's tax liability for each year? What is...
Most questions answered within 3 hours.
-
When bond rating companies rate a bond, which are qualities they
evaluate? Pick more than 1...
asked 17 minutes ago -
Please read the following discussion and share your
thoughts and opinions. Ask at least one question....
asked 7 minutes ago -
Describe an experiment to test the assumption that the heat
capacity for the binding of the...
asked 18 minutes ago -
Consecutive ideal polarizers have axes that are at a 60◦ angle
with respect to each other....
asked 17 minutes ago -
Animals in cold climates often depend on two layers of
insulation: a layer of body fat...
asked 22 minutes ago -
The owner of Genuine Subs, Inc., hopes to expand the present
operation by adding one new...
asked 24 minutes ago -
Find the in-line equilibrium location with respect to two
particles located on the z-axis, the first...
asked 26 minutes ago -
Data from PT Li (in thousand rupiah)
are as follows:
Inventory decrease
90,000
Prepaid expense...
asked 32 minutes ago -
Let X and Y be i.i.d. random variables with finite second
moments. Show that Cov(X+Y, X...
asked 40 minutes ago -
An ANOVA comparing two groups is equivalent to an independent
samples t-test.
True
False
asked 52 minutes ago -
Some supermarkets are using customer tracking technology that
traces the flow of customers
through the shop....
asked 43 minutes ago -
A dock worker applies a constant horizontal force of 75.0 N to a
block of ice...
asked 52 minutes ago