How much of the $520 million in assets represents permanent assets, and how much represents temporary current assets? Round your answer to the nearest dollar. Permanent assets: $ Temporary current assets: $
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Swampy Ox Real Estate (SORE) has been growing at a constant 7 percent rate for many years, and it expects to continue this growth long into the future. On January 1 of this year, which is the slow part of its selling season, SORE's total assets were $420 million. At the height of its selling season, which is at the end of June, SORE expects total assets to be $520 million. How much of the $520 million in assets represents permanent assets, and how much represents temporary current assets? Round your answer to the nearest dollar.
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- Broussard Skateboard’s sales are expected to increase by 15% from $8 million in 2018 to $9.2 million in 2019. Its assets totaled $5 million at the end of 2018. Broussard is already at full capacity, so its assets must grow at the same rate as projected sales. At the end of 2018, current liabilities were $1.4 million, consisting of $450,000 of accounts payable, $500,000 of notes payable, and $450,000 of accruals. The after-tax profit margin is forecasted to be 6%, and the forecasted payout ratio is 40%. Use the AFN equation to forecast Broussard’s additional funds needed for the coming year.Esther’s Egg Farm is constructing its pro forma financial statements for this year. At year end, assets were $400,000 and accounts payable (the only current liabilities account) were $125,000. Last year’s sales were $500,000. Esther’s expects to grow by 15 percent this year. Assets and accounts payable are expected to grow proportionally to sales. Common stock currently equals $140,000, and retained earnings are $98,000. Esther’s plans to sell $15,000 of new common stock this year. The firm’s profit margin on sales is 6 percent, and 40 percent of earnings will be paid out as dividends. How much new long-term debt financing will Esther’s need this year to finance its expected growth? Esther’s is currently operating at full capacity.International House Corporation (IHC) began operations this year. The company retains property losses and estimates that property losses will be $260,000 this year. Property losses are expected to increase by 25 percent per year for the next two years. Use the Excel future value function to find the losses in year 2 and year 3. IHC expects to pay 92 percent of property losses in the year the loss occurs, with 8 percent paid in the following year. How much in retained property losses is IHC expected to pay this year and in each of the next two years? Calculate the losses and retained property losses for each year Liability exposures often are described as having a “long tail,” meaning that significant time can pass before all claims are reported, investigated, and settled. Loss development factors are multipliers that can be applied to claims settled to date to estimate what the ultimate claims for a period will equal. Based on past workers compensation claims data, TRS’s risk manager…
- Derry Corporation is expected to have an EBIT of $2,300,000 next year. Increases in depreciation, the increase in net working capital, and capital spending are expected to be $160,000, $100,000, and $140,000, respectively. All are expected to grow at 19 percent per year for four years. The company currently has $12,000,000 in debt and 1,000,000 shares outstanding. At Year 5, you believe that the company's sales will be $18,910,000 and the appropriate price-sales ratio is 2.5. The company’s WACC is 8.8 percent and the tax rate is 25 percent. What is the price per share of the company's stock? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Answer is complete but not entirely correct. Share price $26.94selected answer incorrectPearl Corp. is expected to have an EBIT of $2,400,000 next year. Depreciation, the increase in net working capital, and capital spending are expected to be $160,000, $105,000, and $145,000, respectively. All are expected to grow at 20 percent per year for four years. The company currently has $12,500,000 in debt and 1,050,000 shares outstanding. At Year 5, you believe that the company's sales will be $20,400,000 and the appropriate price-sales ratio is 2.6. The company’s WACC is 8.9 percent and the tax rate is 21 percent. What is the price per share of the company's stock? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)Derry Corporation is expected to have an EBIT of $2,950,000 next year. Depreciation, the increase in net working capital, and capital spending are expected to be $230,000, $135,000, and $235,000, respectively. All are expected to grow at 18 percent per year for four years. The company currently has $18,000,000 in debt and 845,000 shares outstanding. At Year 5, you believe that the company's sales will be $28,400,000 and the appropriate price-sales ratio is 3.1. The company’s WACC is 9.4 percent and the tax rate is 25 percent. What is the price per share of the company's stock? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.
- Pearl Corp. is expected to have an EBIT of $1,900,000 next year. Depreciation, the increase in net working capital, and capital spending are expected to be $160,000, $80,000, and $120,000, respectively. All are expected to grow at 15 percent per year for four years. The company currently has $10,000,000 in debt and 800,000 shares outstanding. At Year 5, you believe that the company's sales will be $13,620,000 and the appropriate price-sales ratio is 2.1. The company’s WACC is 8.4 percent and the tax rate is 21 percent. What is the price per share of the company's stock?Dewey Corp. is expected to have an EBIT of $2,850,000 next year. Depreciation, the increase in net working capital, and capital spending are expected to be $220,000, $125,000, and $225,000, respectively. All are expected to grow at 16 percent per year for four years. The company currently has $17,000,000 in debt and 835,000 shares outstanding. After Year 5, the adjusted cash flow from assets is expected to grow at 2.8 percent indefinitely. The company’s WACC is 9.2 percent and the tax rate is 23 percent. What is the price per share of the company's stock?Derry Corporation is expected to have an EBIT of $2,600,000 next year. Depreciation, the increase in net working capital, and capital spending are expected to be $195,000, $100,000, and $200,000, respectively. All are expected to grow at 17 percent per year for four years. The company currently has $14,500,000 in debt and 810,000 shares outstanding. After Year 5, the adjusted cash flow from assets is expected to grow at 2.3 percent, indefinitely. The company’s WACC is 8.6 percent and the tax rate is 23 percent. What is the price per share of the company's stock? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.
- Derry Corporation is expected to have an EBIT of $3,300,000 next year. Increases in depreciation, the increase in net working capital, and capital spending are expected to be $160,000, $150,000, and $190,000, respectively. All are expected to grow at 17 percent per year for four years. The company currently has $17,000,000 in debt and 1,500,000 shares outstanding. After Year 5, the adjusted cash flow from assets is expected to grow at 3.5 percent indefinitely. The company’s WACC is 8.9 percent and the tax rate is 25 percent. What is the price per share of the company's stock? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Please avoid answers in images thank youLiverpool Ferries is a navigation company. Until last year Liverpool had no debt, and last year its operations had an expected net income of 2 million GBP. At the end of the year the company undertook some debt so that the debt-to-equity ratio is now equal to 1.6 and will be kept constant by the company. There is one ferry that will be fully depreciated in the next three years, with annual depreciation installments of 300,000 GBP each. After that all assets will be fully depreciated and no new asset will be acquired. The expected return on levered equity for Liverpool is 14.60% and the cost of debt is 8%. The tax rate on corporate earnings is 23% and the depreciation tax shield is as risky as the other unlevered cash-flow of the company. What is the value of Liverpool's asset, if the expected EBITDA of the company is constant?The S&H construction company expects to have total sales next year totaling $14,500,00 In addition, the firm pays taxes at 35 percent and will owe $318,000 in interest expenses. Based on last year’s operations the firm’s management predicts that its cost of goods sold will be 58 percent of sales and operating expenses will total 32 percent. What is your estimate of the firm’s net income after taxes for the coming year ? Complete the pro-forma income statement below Round to the nearest dollar Pro-forma income statement Sales Cost of goods sold Gross profit Operating expenses Net operating expenses Interested expenses Earnings before taxes Taxes Net income
