Please help me Year 0Year 1Year 2Year 3Year 4Year 5Year 6Total Debt25,00025,00025,00025,00025,00025,000EBITDA4,5004,8005,2006,0006,5007,200Free Cash Flow before Debt Service(1,250)(2,500)1,5502,4503,2503,6504,250Net Equity Cash Flows3001,2002,0002,4003,000Expected Equity Return20%Exit YearYear 5Terminal Value1. EBITDA Multiple8.0x2. Perputity Method (use Next Year's Cash Flow)WACC10.0%Growth Rate5.0%OUTPUTCASH FLOW PROJECTIONS FOR DCF12345Year 0Year 1Year 2Year 3Year 4Year 5Year 6Equity Cash FlowsTerminal Value (Exit Year)1. EBITDA Multiple2. Perputity Method (use Next Year's Cash Flow)AverageDebtEquity TVEquity Cash Flows + TVNet Present ValueIRR

In the given question we are required to calculate NPV which is calculated as follows in the…

Answered: Year 0 Year 1 Year 2 Year 3 Year 4 Year…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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PROBLEM 8:Tomas Co. has the following balance sheet as of December 31, 2021.Current assets 180,000.00Fixed assets 120,000.00Total assets 300,000.00Accounts payable 40,000.00Accrued liabilities 20,000.00Notes payable 50,000.00Other Long-term debt 75,000.00Total Equity 115,000.00Total liabilities and equity 300,000.00 In 2021, Tomas Co. reported sales of P1,500,0000, net income of P30,000, and dividends of P18,000. The company expected its sales to increase by 20% by next year and its retention ratio will remain at 40%. Assume that Tomas Co. is operating at full capacity and it uses the AFN approach in determining the amount of external financing needed.How much is the sales for 2022? Using Problem 8, how much is the increase in retained earnings for the purpose of computing the AFN? Using Problem 8, how much external funds needed for the year 2022?
Revenue R100 000, Debtors (opening R50 000, closing R110 000), Calculate Cash Receipts from Customers. Select one: a. R60 000 b. R40 000 c. R110 000 d. R100 000
Capital 1 January 2019 350 000Drawings 20 000Sales (70% on credit) 950 000Gross profit 250 000Total expenses 80 000Bank favourable 26 000Net profit 74 000Trade creditors 26 000Property, plant and equipment 350 000Fixed deposit 20 000Inventory 72 000Trade Debtors 80 000Mortgage Loan 100 000 Additional InformationThe opening balance of the inventory, debtors and creditors was R50 000, R60 000 and R30 000respectively. Assume a 365 day year. Calculate the following ratios and explain what each ratio means in relation to theindustry average given in brackets. Show your calculations as marks will be awardedfor these. Round off to 2 decimal places. Q.2.1.3 Average creditors settlement period (60 days). Assume purchases are equalto cost of sales and 60% of all purchases are on credit. Q.2.2 Discuss how the solvency ratio is calculated and what is measured by this ratio. Please help with the both questions mentioned
Capital 1 January 2019 350 000Drawings 20 000Sales (70% on credit) 950 000Gross profit 250 000Total expenses 80 000Bank favourable 26 000Net profit 74 000Trade creditors 26 000Property, plant and equipment 350 000Fixed deposit 20 000Inventory 72 000Trade Debtors 80 000Mortgage Loan 100 000 Additional InformationThe opening balance of the inventory, debtors and creditors was R50 000, R60 000 and R30 000respectively. Assume a 365 day year. Calculate the following ratios and explain what each ratio means in relation to theindustry average given in brackets. Show your calculations as marks will be awardedfor these. Round off to 2 decimal places. Q.2.1.3 Average creditors settlement period (60 days). Assume purchases are equalto cost of sales and 60% of all purchases are on credit. Q.2.2 Discuss how the solvency ratio is calculated and what is measured by this ratio.
year 4 year 3 year 2 current ratio 1.6 1.5 quick ratio 1.2 1.1 operating cash flow to current liabilites ratio 0.479 0.548 days accounts receivable outstanding 68 73 days inventory held 51 68 days accounts payable outstanding 47 49 net days of working capital financing needed 72 91 liabilities to assets ratio 0.556 0.621 liabilities to shareholders' equity ratio 1.251 1.639 long term debt to long term capital ratio 0.328 0.418 long term debt tp shareholders' equity ratio 0.489 0.72 operating cash flow to total liabilities ratio 0.245 0.238 interst coverage ratio 5.6 2.3 c. asses the changes in the long term solvency risk between year 2 and year 4 and the level of that risk at the end of year 4. operations year 4 year 3 year 2 net income $196 175 75 depreciation and amortization 146 164 184 addbacks and subtractions,net 17 68 (67) (increase) Decrease in accounts receivable 76 (13) 34…
year 4 year 3 year 2 current ratio 1.6 1.5 quick ratio 1.2 1.1 operating cash flow to current liabilites ratio 0.479 0.548 days accounts receivable outstanding 68 73 days inventory held 51 68 days accounts payable outstanding 47 49 net days of working capital financing needed 72 91 liabilities to assets ratio 0.556 0.621 liabilities to shareholders' equity ratio 1.251 1.639 long term debt to long term capital ratio 0.328 0.418 long term debt tp shareholders' equity ratio 0.489 0.72 operating cash flow to total liabilities ratio 0.245 0.238 interst coverage ratio 5.6 2.3 a. calculate amounts of ratios for year 4 year 4 year 3 year 2 year 1 Assets cash $725 $521 $496 $233 Accounts receivable 579 607 555 572 inventories 195 169 190 217 prepayments 219 212 191 346 total current assets $1,718 $1,509 $1,432 $1,368 other assets 1316 1454 1498 1765 total assets $3,241 $3,163 $3,143…
year 4 year 3 year 2 current ratio 1.6 1.5 quick ratio 1.2 1.1 operating cash flow to current liabilites ratio 0.479 0.548 days accounts receivable outstanding 68 73 days inventory held 51 68 days accounts payable outstanding 47 49 net days of working capital financing needed 72 91 liabilities to assets ratio 0.556 0.621 liabilities to shareholders' equity ratio 1.251 1.639 long term debt to long term capital ratio 0.328 0.418 long term debt tp shareholders' equity ratio 0.489 0.72 operating cash flow to total liabilities ratio 0.245 0.238 interst coverage ratio 5.6 2.3 b.assess the changes in the short term liquidity risk between year 2 and year 4 and the level of that risk at the end of year 4. operations year 4 year 3 year 2 net income $196 175 75 depreciation and amortization 146 164 184 addbacks and subtractions,net 17 68 (67) (increase) Decrease in accounts receivable 76 (13) 34…
Q. Using the following data, complete the balance sheet given below: Gross profit. Rs.54,000 Shareholders fund Rs.600,000 Gross profit margin. 20% Credit sale to Total sales. 80% Total assets turnover. 0.3 times Inventory turnover. 4times Average collection period. 20 days ( a 360 days year) Current ratio. 1.8 Long-term debt to equity. 40% BALANCE SHEET Creditors. ? Cash ? Long term debt. ? Debtors. ? Shareholders fund. ? Inventory. ? Fixed asset. ? Total equity. Total assets
2019: Profit Margin – Profit $1435 / Net Sales $38,464 = 0.037:1 OR 3.7% Working Capital – Current Assets $3406 - Current Liabilities $4291 = -885 Current Ratio – Current Assets $3406 / Current Liabilities $4291 = 0.79:1 OR $0.79 Current Cash Debt Coverage – Net Cash Provided by Operation Activities $2275 / Average Current Liabilities $8781.50 = 0.26:1 OR 0.26 Average Current Liabilities Calculation: 4291 + 8981 / 2 = 8781.50 Debt to Total Assets Ratio – Total Liabilities 4291 + 2129 = 6420 / Total Assets 3406 + 6371 = 9777 = 0.66:1 OR 0.66 Cash Debt Coverage – Net Cash Provided by Operation Activities $2275 / Average Total Liabilities 11,067.25 = 0.21:1 OR 0.21 Average Total Liabilities Calculation: 6420 + 9295 / 2 = 11,067.25 Return on Assets – Profit 1435 / Average Total Assets 11,160.50 = 0.128:1 OR 12.8% Average Total Assets Calculation: 9777 + 12544 / 2 = 11,160.50 2020: Profit Margin – Profit $978 / Net Sales $37,784 = 0.025:1 OR 2.5% Working Capital – Current Assets $3779 -…
Life-Positive’s Account Balances 2021 ($) 2022 ($) Accounts Payable 24,600.00 21,250.00 Accounts receivable 15,700.00   12,340.00 Cash 23,450.00 28,600.00 Cost of goods sold 19,700.00 23,000.00 Depreciation 3,090.00 4,590.00 Dividends 5,800.00 10,800.00 Interest 2,340.00 2,890.00 Inventory 7,050.00 8,640.00 Long-term debt 28,000.00 30,000.00 Net fixed assets 41,500.00 48,000.00 Other expenses 2,400.00   2,800.00 Sales 58,000.00   62,500.00 Short-term Notes Payable 2,890.00 2,340.00 Shares outstanding 85,000.00 90,000.00 The tax rate is 32% 1.Prepare a balance sheet for 2021 and 2022 for the company, clearly showing information about each line item. 2.Prepare an income statement for 2021 and 2022 for the company. 3.For the year ending 2022, determine the Net New Equity, Change in Net Working Capital, Net Capital Spending and Operating Cash flow. 4.Calculate the cash flow from assets, cash flow to creditors,…
Life-Positive’s Account Balances    2021 ($) 2022 ($) Accounts Payable 24,600.00    21,250.00 Accounts receivable 15,700.00 12,340.00 Cash 23,450.00 28,600.00 Cost of goods sold    19,700.00 23,000.00 Depreciation 3,090.00 4,590.00 Dividends 5,800.00 10,800.00 Interest 2,340.00 2,890.00 Inventory 7,050.00 8,640.00 Long-term debt 28,000.00 30,000.00 Net fixed assets 41,500.00    48,000.00 Other expenses    2,400.00 2,800.00 Sales    58,000.00    62,500.00 Short-term Notes Payable 2,890.00    2,340.00 Shares outstanding 85,000.00 90,000.00 The tax rate is 32% 1.Calculate the cash flow from assets, cash flow to creditors, and cash flow to stockholders for 2022. 2.what is the Dividends per Share and Earnings per Share for each year for Brown Company. 3.Briefly comment on the company’s cash flows for 2022 in light of an expansion plan which will be financed by both debt and…
Life-Positive’s Account Balances 2021 ($) 2022 ($)      Accounts Payable 24,600.00 21,250.00 Accounts receivable 15,700.00 12,340.00  Cash 23,450.00 28,600.00 Cost of goods sold 19,700.00 23,000.00 Depreciation 3,090.00 4,590.00 Dividends 5,800.00 10,800.00 Interest 2,340.00 2,890.00 Inventory 7,050.00 8,640.00  Long-term debt 28,000.00…

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