how much money had accumulated at the end of the 5th year?
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Profits generated by SM Prime Holdings were ₱100 million for the first year and increased by ₱10 million
each year. If the profits for 5 years of operation were invested at 12%
had accumulated at the end of the 5th year?
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- This year, The Boring Company, has an EBIT of $100m, interest expenses of $40m, depreciation expenses of $15m and capital expenditures of $30 million, and has increased its net working capital by $5m. Its tax rate is 35%. Compute earnings and free cash flow.The company earned a revenue of Php 70,500 at the end of the third year but then decreases geometrically by 15% per year through year 20. Assume that the company invested Php 150,000 before the start of the business. Determine the present worth equivalent of all the revenues during this 20-year time period at an interest rate of 10% per annum and Internal Rate of Return (In percentage) of this investment and What will be the Future equivalent and annual worth equivalentof all the revenues during this 20-year time period? Answer in 2 decimal places.You have looked at the current financial statements for J&R Homes, Company. The company has an EBIT of $3.35 million this year. Depreciation, the increase in net working capital, and capital spending were $295,000, $125,000, and $535,000, respectively. You expect that over the next five years, EBIT will grow at 15 percent per year, depreciation and capital spending will grow at 20 percent per year, and NWC will grow at 10 percent per year. The company has $19.5 million in debt and 400,000 shares outstanding. You believe that sales in Year 5 will be $45.5 million and the price-sales ratio will be 2.15. The company’s WACC is 8.6 percent and the tax rate is 22 percent. What is the price per share of the company's stock?
- A company has profits of $38,982 this year and expects profits to decrease by $1,728 dollars per year over the next 12 years. If the profits will be continuously invested in an account bearing 6.2% APR compounded continuously, what is the 12-year present value of this income stream?You have looked at the current financial statements for J&R Homes, Company. The company has an EBIT of $3,110,000 this year. Depreciation, the increase in net working capital, and capital spending were $238,000, $103,000, and $480,000, respectively. You expect that over the next five years, EBIT will grow at 19 percent per year, depreciation and capital spending will grow at 24 percent per year, and NWC will grow at 14 percent per year. The company currently has $17.7 million in debt and 370,000 shares outstanding. After Year 5, the adjusted cash flow from assets is expected to grow at 3 percent indefinitely. The company’s WACC is 8.5 percent and the tax rate is 24 percent. What is the price per share of the company's stock?The Prentice Paint Company earned a Net Profit margin of 20% on revenues of $20million this year. Fixed Capital Investment was $2 million and the depreciation was $3 million. Working capital investment equals 7.5% of the sales level in that year. Net Income, Fixed Capital Investment, depreciation, interest expense, and sales are expected are expected to grow at 10% per year for the next 5 years. After 5 years, the growth rate in sales, net income, and interest expense will decline to a stable 5% per year, and fixed capital investment and depreciation will offset each other. The tax rate is 40%, it has 1 million shares of common stock outstanding, and has long-term debt paying 12.5% interest trading at its par value of $32 million. Calculate the value of the firm and its equity using the FCFF model if the WACC is 17% during the high growth stage and 15% during the stable stage.
- You have been studying Lucas Corp.’s financial statements. This year, the company has an EBIT of $3.15mil, Depreciation of $295,000, an increase in net working capital of $125,000, and a capital spending of $535,000. You expect that over the next 5 years, EBIT will grow at 15% per year, depreciation and capital spending will grow at 20% per year, and NWC will grow at 10% per year. After year 5, you expect the company’s free cash flow will grow at 3.5% indefinitely. The company has a 21% corporate tax rate and a WACC of 8.9%. a) Compute the free cash flows for the next 5 years. b) Compute the terminal value at the end of year 5. c) What is the company’s enterprise value?You have looked at the current financial statements for J&R Homes, Company. The company has an EBIT of $4,350,000 this year. Depreciation, the increase in net working capital, and capital spending were $300,000, $148,000, and $550,000, respectively. You expect that over the next five years, EBIT will grow at 15 percent per year, depreciation and capital spending will grow at 20 per year, and NWC will grow at 10 per year. The company has $25,000,000 in debt and 455,000 shares outstanding. After Year 5, the adjusted cash flow from assets is expected to grow at 3.55 percent, indefinitely. The company’s WACC is 9.6 percent and the tax rate is 21 percent. What is the price per share of the company's stock? PLEASE NEED THIS ASAPYou have looked at the current financial statements for Reigle Homes, Co. The company has an EBIT of $2,850,000 this year. Depreciation, the increase in net working capital, and capital spending were $225,000, $90,000, and $415,000, respectively. You expect that over the next five years, EBIT will grow at 16 percent per year, depreciation and capital spending will grow at 21 percent per year, and NWC will grow at 11 percent per year. The company has $15,100,000 in debt and 345,000 shares outstanding. You believe that sales in five years will be $22,600,000 and the price-sales ratio will be 2.4. The company’s WACC is 8.5 percent and the tax rate is 21 percent. What is the price per share of the company's stock?
- The following information relates to A Co for the last financial year. Revenue $200 million Asset turnover 10 times Interest payable $1.5 million Interest cover ratio 5 times What is the return on capital employed for A Co for the year?Last year, Hassan’s Madhatter, Inc. had an ROA of 5.8 percent, a profit margin of 18.50 percent, and sales of $10 million. Calculate Hassan’s Madhatter’s total assets. (Enter your answer in dollars, rounded to the nearest dollar.)Franktown Motors is expected to have an EBIT of $2.2 million next year. Depreciation, the increase in net working capital, and capital spending are expected to be $158,000, $92,000, and $114,000, respectively. All are expected to grow at 15 percent per year for four years. The firm currently has $12 million in debt and 750,000 shares outstanding. After year 5, the adjusted cash flow from assets is expected to grow at 2.5 percent indefinitely. The company’s WACC is 8.7 percent and the tax rate is 34 percent. What is the price per share of the company’s stock? $27.82 $29.34 $22.07 $26.12 $16.47