Finance: Free Cash Flow

3. Compute the unlevered free cash flow and the interest tax shields from 2008 to 2012 based on estimates provided in Exhibit 1 and Exhibit 6. (3 points)

2. Was cash flow from operations greater than or less than net income? Explain in detail the major reasons for the difference between these two figures.

|Assignment |Complete the Chapter 2 Quiz located on the Materials page of your student website. | |30 |

This practice exam covers a selection of the types of questions that may be asked in the

Complete the following exercises and problems from the textbook. Some problems ask multiple questions; be sure to answer every part of the exercise or problem unless otherwise noted

If there are any questions, please feel free to contact me. I will also speak again to Isaac about his grade on this assignment.

Please save this document before you begin working on the assignment. Type your answers directly in the document. When you have finished, submit your work to your teacher.

* Net Operating Income (NOI), Cash Flow from Operations (CFO) and Cash Flow after Financing (CFAF)

The next step was to calculate the free cash flows for the eleven-year period. In order to do so, we used to following formula: FCF = EBIT(1-tax) + depreciation - change in NWC – CapEx. From here, we used to WACC of 13.89% previously calculated, in order to find the present value of each FCF.

FCF is calculated as:EBIT(1-Tax Rate) + Depreciation & Amortization - Change in Net Working Capital - Capital ExpenditureIt can also be

This assignment has a maximum total of 100 marks and is worth 10% of your total grade for this course. You should complete it after completing your course work for Units 1 through 5. Answer each question clearly and concisely.

Resort. Co had uncollateralized term loans (Original Debt) with Bank A of $129.6 million and Bank B of $302.4 million that totals $432 million as of December 31, 2010. There were also unamortized issuance costs of $3 million ($900,000 for Bank A and $2.1 million for Bank B). The maturity date of the Original Debt is December 31, 2020. Because of lower than expected travel during the holiday season, Resort. Co projected a short-term cash flow shortage and would not be able to meet the short term requirements of the Original Debt. In addition, Resort Co. was in default on another debt with Bank C that resulted in cross defaults with both Bank A and Bank B.

I would calculate the annual net working capital (NWC) based on 20% of the annual forecasted incremental revenues. Next, I would calculate the change in NWC each year. If NWC gets larger than the starting level of $44,000, it would be accounted for as a cash outflow and vice versa. At the end of the productive life of the machine, the NWC is assumed to be recovered and is treated as a cash inflow. No taxes have to be paid on this amount.

Please read all questions and instructions carefully. Note that you only need to enter answers in terms of numbers and without any symbols (including $, %, commas, etc.). Enter all dollars without decimals and all interest rates in percentage with up to two decimals. Read the syllabus for examples.The points for each question are listed in parentheses at the start of the question, and the total points for the entire assignment adds up to 100. This assignment covers Statistics as related to finance. Refer to Note on Review of Statistics before you

The project proposal will be critical analysed before it will established in South Korea. In the first assignment will looked in depth in political, country risk, FDI theories and motive for the project. In the second assignment, the cost of capital for the project was calculated, stating the risk for both the parent and subsidiaries.