Net Income for Company A is $200,000 in 2014, $300,000 in 2015, $400,000 in 2016, $500,000 in 2017, and $600,000 in 2018. The expected growth for all years after 2018 is 5%, the 90-Day T-Bill Rate is 20%, and the appropriate percentage above risk-free rate is 12%. Using this information, what is Net Present Value? A. 412,020.21
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Net Income for Company A is $200,000 in 2014, $300,000 in 2015, $400,000 in 2016, $500,000 in 2017, and $600,000 in 2018. The expected growth for all years after 2018 is 5%, the 90-Day T-Bill Rate is 20%, and the appropriate percentage above risk-free rate is 12%. Using this information, what is
A. 412,020.21
B. 812,020.21
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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.Current and projected free cash flows for Radell Global Operations are shown here. Growth is expected to be constant after 2020, and the weighted average cost of capital is 11%. What is the horizon (continuing) value at 2021 if growth from 2020 remains constant?Ogier Incorporated currently has $800 million in sales, which are projected to grow by 10% in Year 1 and by 5% in Year 2. Its operating profitability ratio (OP) is 10%, and its capital requirement ratio (CR) is 80%? What are the projected sales in Years 1 and 2? What are the projected amounts of net operating profit after taxes (NOPAT) for Years 1 and 2? What are the projected amounts of total net operating capital (OpCap) for Years 1 and 2? What is the projected FCF for Year 2?
- Smiley Corporations current sales and partial balance sheet are shown here. Sales are expected to grow by 10% next year. Assuming no change in operations from this year to next year, what are the projected spontaneous liabilities?Net Income for Company A is $200,000 in 2014, $300,000 in 2015, $400,000 in 2016, $500,000 in 2017, and $600,000 in 2018. The expected growth for all years after 2018 is 5%, the 90-Day T-Bill Rate is 20%, and the appropriate percentage above risk-free rate is 12%. Using this information, what is the reasonable value for Company A based on its future income stream for 2014 to 2018? A. 1,394,267.03 B. 4,394,267.03 A or B?Sohar Video Products’ sales are expected to increase from OMR (10) million in 2020 to OMR (12) million in 2021. Asset turnover generated in the 2020 of (2.5) times. Sohar Company is already at full capacity, so its assets must grow at the same rate as projected sales. At the end of 2020, current liabilities were OMR (2) million, the net profit was OMR (30) thousand, and the dividend payout ratio was 20%. Suppose the net profit margin (NPM) and dividend payout ratio (D%) will hold the same percentage in 2021. Is Sohar company needs fund from external or internal to finance the new sales in 2021? And why. (Note: - Kindly mention the equations that are related) ________________________________
- A company's annual profits have a trend line given by Y = 20,000t – 10,000, where Y is the trend and t is the year with t = 0 in 2012. What is the forecasted profit for the year 2021 using an additive model if the seasonal variation for that year is –30,000?Allam’s Corporation had the following figures in 2019: -Interest rate on loan debt is 14% -Tax Rate is 20% -Total liabilities are 2,000,000 -Total assets are 5,000,000 -Risk-free rate of return is 15% -Beta for the company is 1.2 -Average Market return is 25% The company is evaluating two projects; S & N that are expected to generate the following: Year S N 0 (500,000) (500,000) 1 240,000 170,000 2 230,000 200,000 3 190,000 250,000 4 140,000 290,000 Required: Calculate the Weighted Average Cost of Capital Using payback, discounted payback, and net present value techniques, which project would you recommend, if any?Data are as follows: In year 2020, sales are 150,000 units with Selling price per unit of 10 and VC per unit iof 6.50 per unit. Fixed cost is 155,000 and Interest cost is 90,000. Q3. Assume that the company expects to have sales increase by 20%, what will be the resulting change in EBIT in year 2021? • 28.38% • 26.45% • 25% • 33.33%
- Data are as follows: In year 2020, sales are 150,000 units with Selling price per unit of 10 and VC per unit iof 6.50 per unit. Fixed cost is 155,000 and Interest cost is 90,000. Q3. Assume that the company expects to have sales increase by 20%, what will be the resulting change in EBIT in year 2021?(2 Points) • 28.38% • 33.33% • 25% • 26.45%Austin Grocers recently reported the following 2018income statement (in millions of dollars): For the coming year, the company is forecasting a 25% increase in sales, and it expects thatits year-end operating costs, including depreciation, will equal 70% of sales. Austin’s taxrate, interest expense, and dividend payout ratio are all expected to remain constant.a. What is Austin’s projected 2019 net income?b. What is the expected growth rate in Austin’s dividends?Data are as follows: In year 2020, sales are 150,000 units with Selling price per unit of 10 and VC per unit iof 6.50 per unit. Fixed cost is 155,000 and Interest cost is 90,000. Q3. Assume that the company expects to have sales increase by 20%, what will be the resulting change in EBIT in year 2021? A• 25% B• 26.45% C• 33.33% D• 28.38%