What is the company's forecasted free cash flow for the year? * Sample format: 1,111,111 stock market analyst has forecasted the following year-end numbers for National Co.: Sales P70 million P25 million Depreciation P 7 million E BITDA Amortization P O he company's tax rate is 25 percent. The company does not expect any changes in perating working capital. This year the company's planned gross capital expenditures w 12 million and planned increased in working capital of P5 million. (Gross capital expen
Q: Company M’s cash flows from operations before interest and taxes was $2 million in the year just…
A: Free cash flow is the cash flow which is left to the firm after all the capital expenditure is done…
Q: Company DotThrive reported the following financial results. Operating income is $61.32 million and…
A: Free cash flows are the cash that is available for the company to pay off the debts or payment of…
Q: The Berndt Corporation expects to have sales of $12 million. Costs other thandepreciation are…
A: a. Computation of expected net income and expected net cash flow is shown below:
Q: Berman & Jaccor Corporation's current sales and partial balance sheet are shown below. This…
A: Operating Assets: The operating assets include that cash, inventories, accounts receivables &…
Q: Free Cash Flow A company has an EBIT of P30,000,000, depreciation of P5,000,000, and a 40% tax rate.…
A: Given Information: EBIT =P 30,000,000 Tax = 40% New Fixed Assets ( Capital Expenditure) = P…
Q: Carter Swimming Pools has $23 million in net operating profit after taxes (NOPAT) in the current…
A: Given, NOPAT is $23 million Total net operating assets in the current year is $15 million Total net…
Q: A stock market analyst has forecasted the following year-end numbers for Nation al Co.: Sales P70…
A:
Q: 2. Alarm. Co recently reported $15.000 of sales, $5.500 of operating costs other than depreciation,…
A: Net Income Net income refers to the earnings of the business after deducting all the losses and…
Q: ran Enterprises forecasts the free cash flows (in millions) shown below. Assume the firm has zero…
A:
Q: A stock market analyst has forecasted the following year-end numbers for Raedebe Technology. Sales…
A: Free cash flow (FCF) represents the cash a company generates after accounting for cash outflows to…
Q: A firm’s total net operating capital for the previous year was$9.3 million. For the current year,…
A: Free cash flows refers to the amount which is left after paying operating expenses and capital…
Q: Ms. Ga Ling projected the following data for GWAPO Corporation: (amounts in millions of Pesos) Year…
A: Initial investmenr is P50,000,000 Life 10 years Annual CAPEX requirement is P2,000,000 Outstanding…
Q: Projected Operating Assets Berman & Jaccor Corporation's current sales and partial balance sheet…
A: Operating Assets are those assets which are used in day to day operations of business. The…
Q: For 2018, Gourmet Kitchen Products reported $22.5 million of sales and $18 million of operating…
A: Economic value added (EVA) is a measure of a company's economic profit. It is the value created…
Q: Projected Operating Assets Berman & Jaccor Corporation's current sales and partial balance sheet…
A:
Q: Your firm has the following income statement items: sales of $52,000,00%3; income tax of $1,880,000;…
A: Cash flows from operations means all cash inflows and outflows generated from the operations of the…
Q: The free cash flows (in millions) shown below are forecast by Simmons Inc. If the weighted average…
A: Financial Management: Financial management comprises of two words i.e. Finance and management.…
Q: Projected Operating Assets Berman & Jaccor Corporation's current sales and partial balance sheet are…
A: Cash, accounts receivable, inventories and net fixed assets are Operating assets.
Q: The 2020 balance sheet of Osaka's Tennis Shop, Incorporated, showed $630,000 in the common stock…
A: Cash Flow to/from stock holder includes the following Cash inflow due to shares issued Cash outflow…
Q: A market research firm with current sales of $750 does not expect any growth in sales for the next…
A: Here, Current sales = $750 Current expenses = $160 Expenses for next year = $240 Expenses for second…
Q: Rian Corporation is currently working without using debt. The estimated operating profit per year is…
A: The capital structure refers to the combination of different sources of capital and the propertion…
Q: Strickler Technology is considering changes in its working capital policiesto improve its cash flow…
A: cash conversion cycle
Q: Berman & Jaccor Corporation's current sales and partial balance sheet are shown below. This…
A: In the given question we are required to calculate the projected total operating assets. Please…
Q: solution star industries has published its annual account. it indicates that during the year the…
A: Operating cash flows refers to the flows of the cash (inflows and outflows both) in the business…
Q: A company's sales in 2020 were $3.8 million and its total spontaneous se the firm's spontaneous…
A: Profit margin = 9.7% Net profit for the year can be calculated as : Net profit = Profit margin *…
Q: Strickler Technology is considering changes in its working capital policies to improve its cash flow…
A: The cash conversion cycle (CCC) is one of several measures of management effectiveness. It measures…
Q: (i ) Abbreviated financial statements for Billabong Corporation for 2019 are given below: 2019 ($…
A: Cash flow from operating activities = Net income + depreciation + Increase in working capital = 40.2…
Q: BC Corporation has a weighted average cost of capital of 16%. What is its value if it will provide…
A: Earnings here are the dividends to the investors. Dividend Discount Model (DDM) is used to value a…
Q: Given are the following data for year 1: Revenue = $45 million; Variable cost = $10 million; Fixed…
A: given Revenue = $45 million; Variable cost = $10 million; Fixed cost = $5 million; Depreciation = $1…
Q: that today is December 31, 2021. Use the following information that applies to Harrison Corporation…
A: The process of determining a business entity's value is known as corporate valuation. It's a key…
Q: A company is forecasted to generate free cash flows of $29 million next year and $29 million the…
A: The total cash that a company has to pay off to its liabilities and dividend to its shareholders is…
Q: A firm has the following balance sheet for year 2020 (millions of dollars): Cash $12 Accounts…
A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…
Q: Projected Operating Assets Berman & Jaccor Corporation's current sales and partial balance sheet are…
A: All liquidable, tangible, and intangible assets that actively support business operations and create…
Q: Ryan Enterprises forecasts the free cash flows (in millions) shown below. Assume the firm has zero…
A: In the given question we need to calculate the firm's total corporate value (in millions). Firm's…
Q: Kale Inc. forecasts the free cash flows (in millions) shown below. Assume the firm has zero…
A: Firm value is one of the deciding methods of the utility of the company. It is calculated as same as…
Q: Berman & Jaccor Corporation's current sales and partial balance sheet are shown below. This year…
A: Net operating assets = Total Assets - Short term investments = 1285 - 135 =1150
Q: An analyst has collected the following information regarding National Co.: Earnings before interest…
A: Net cash flow = Net income + Depreciation
Q: Operating cash flow. Find the operating cash flow for the year for Harper Brothers, Inc. if it had…
A: Given:
Q: For 2018, gourmet kitchen products reported $22 million of sales & $19 million of operating costs…
A: A concept that helps to evaluate the financial performance of a company by deducting the overall…
Q: company's stock price today (December 31, 2013)? D
A: Solution:- Particulars Amount Calculations Total firm value FCF1/(r-g) Here,…
Q: Your firm has the following income statement items: sales of $52,000,000; income tax of $1,880,000;…
A: For the purpose of computing the cash flow from operations: 1. Any non-cash income or expense needs…
Q: Company DotThrive reported the following financial results. Operating income is $94.98 million and…
A: Free cash flows refer to the cash generated by a company after taking into consideration the cash…
Q: Kale Inc. forecasts the free cash flows (in millions) shown below. Assume the firm has zero…
A: The firm value is the total value of the corporate at any given point of time. This value is often…
Q: An analyst has collected the following information regarding YYYYY: Earnings before interest and…
A: Calculate the depreciation by deducting the amount of EBIT which is P700 million from the amount of…
Q: Berman & Jaccor Corporation's current sales and partial balance sheet are shown below. This…
A: Total Operating Assets = (cash + Accounts Receivables + Inventories + Net Fixed Assets) Given growth…
Q: An analyst has collected the following information regarding National Co.: Earnings before…
A: Net cash flow means the cash inflow or outflow after adding depreciation to the net profit after tax…
Q: Gabbert’s Corporation expects to have sales of $15 million. Costs other than depreciations are…
A: An income statement is a financial statement that shows you how profitable your business was over a…
8
Step by step
Solved in 2 steps
- Carter Swimming Pools has $16 million in net operating profit after taxes (NOPAT) in the current year. Carter has $12 million in total net operating assets in the current year and had $10 million in the previous year. What is its free cash flow?Strickler Technology is considering changes in its working capital policies to improve its cash flow cycle. Stricklers sales last year were 3,250,000 (all on credit), and its net profit margin was 7%. Its inventory turnover was 6.0 times during the year, and its DSO was 41 days. Its annual cost of goods sold was 1,800,000. The firm had fixed assets totaling 535,000. Stricklers payables deferral period is 45 days. a. Calculate Stricklers cash conversion cycle. b. Assuming Strickler holds negligible amounts of cash and marketable securities, calculate its total assets turnover and ROA. c. Suppose Stricklers managers believe the annual inventory turnover can be raised to 9 times without affecting sale or profit margins. What would Stricklers cash conversion cycle, total assets turnover, and ROA have been if the inventory turnover had been 9 for the year?A company has a five year weighted average after tax cash flow of $125,000. It has been determined the discount rate is 19%, short term expected growth is 11%, and long-term sustainable growth is 3%. The analyst has also determined excess cash of $25,000. What is the value of the company based on the capitalization of after tax cash flows? a. $625,000 b. $657,895 c. $781,250 d. $909,090
- The forecast for Global Exports' free cash flows for next year is provided in the table below. Selected Financial Information Global Exports Inc. ($000s) Operating Cash Flow Net Working Capital CAPEX Debt Shares Outstanding O $7.32 O $6.74 Assume that free cash flow is paid at the end of each year and we are at the beginning of next year. Last year's values are for the year end yesterday. Analysts expect Global Exports' cash flow to grow at 1% in perpetuity. The WACC for Global is 8%. What is the fair price for Global Exports' shares today? O $6.14 Last Year 93,435 325,000 22,876 450,255 50,000 O $6.85 Next Year 103,462 344,000 28,975 485,850 50,000The forecast for Global Exports’ free cash flows for next year is provided in the table below. Selected Financial Information Global Exports Inc. ($000s) Last Year Next Year Operating Cash Flow 74,230 78,076 Net Working Capital -12,240 -13,460 CAPEX 8,720 15,400 Debt 80,100 100,200 Shares Outstanding 10,000 10,000 Assume that free cash flow is paid at the end of each year and we are at the beginning of next year. Last year’s values are for the year end yesterday. Analysts expect Global Exports’ cash flow to grow at 3% in perpetuity. The WACC for Global is 11%. What is the fair price for Global Exports’ shares today? Responses $62.37 $62.37 $69.85 $69.85 $73.27 $73.27 $71.86 Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.As the chief financial officer of Adirondack Designs, you have the following information: Next year’s expected net income after tax but before new financing $ 51 million Sinking-fund payments due next year on the existing debt $ 26 million Interest due next year on the existing debt $ 21 million Common stock price, per share $ 33.5 Common shares outstanding 31 million Company tax rate 35% Calculate Adirondack’s times-interest-earned ratio for next year assuming the firm raises $61 million of new debt at an interest rate of 2 percent. Calculate Adirondack’s times-burden-covered ratio for next year assuming annual sinking-fund payments on the new debt will equal $3.0 million. Calculate next year’s earnings per share assuming Adirondack raises the $61 million of new debt. Calculate next year’s times-interest-earned ratio, times-burden-covered ratio, and earnings per share if Adirondack sells 2.6 million new shares at $22 a share instead of raising new debt.
- Consider the following data (be careful there might be some "unnecessary" information). EBIT = 176 Interest expense = 10 Tax rate = 30% Depreciation = 38 Net working capital = 30 Increase in net working capital = 10 Beginning of period Net PP&E = 50 Capex = 16 What is the free cash flow of the firm that year?The table below shows the forecast cash flow information of Good Time Inc. for the next year. The required debt payment in the next year is $88 million, with the current market value of $75 million. The company pays no tax. If you invest in the corporate debt of Good Time Inc. today, what is your expected return on this investment? Cash flow in the next year Economy Probability Amount Boom 0.6 $148 million Recession 0.4 I$61 million O 18.77% O 10.29% O 2.93% O 28.67%A stock market analyst has forecasted the following year-end numbers for Raedebe Technology. Sales = $70 million. EBITDA = $20 million. Depreciation = $ 7 million. Amortization = $ 0.The company’s tax rate is 40 percent. The company does not expect any changes in its net operating working capital. This year the company’s planned gross capital expenditures will total $12 million. (Gross capital expenditures represent capital expenditures before deducting depreciation.) What is the company’s forecasted free cash flow for the year?
- An analyst is trying to estimate the intrinsic value of VN Co. that has a weighted average cost of capital at 10%. The estimated free cash flows for the company for the following years are: · Year 1 P3,000 · Year 2 P4,000 · Year 3 P5,000 The analyst estimates that after three years, free cash flow will grow at a constant annual percentage of 6%. What is the total intrinsic value of the company’s common stock if combined debt and preferred stock has a P25,000 market value? A. 98,556 B. 109,339 C. 78,310 D. 84,339A company expects sales of $420 million next year assuming a 20% increase from the previous year. The firm anticipates $29.17 million in retained earnings after taxes and dividends have been paid, assuming that $1 million in depreciation expense have been deducted. Working capital is expected to represent 40% of change in sales. Required: Determine the amount of surplus (or deficit) in funds. k (INPUT YOUR ANSWER IN K, ROUNDED TO 2 DECIMAL PLACES. FOR EXAMPLE: 1.23. USE THE MINUS SIGN TO INDICATE A NEGATIVE ANSWER. FOR EXAMPLE: -1.23)As the chief financial officer of Adirondack Designs, you have the following information: • Next year's expected net income after tax but before new financing $42 million Sinking-fund payments due next year on the existing debt $15 million • Interest due next year on the existing debt $10 million • Common stock price, per share $28.00 • Common shares outstanding 20 million Company tax rate 30% Calculate the firm's times-interest-earned ratio for next year assuming the firm raises $50 million of new debt at an interest rate of 4 percent. 5.83 4.21 ○ 6.38 O 1.25