INTERMEDIATE FINAN...-MINDTAP(1 TERM)
14th Edition
ISBN: 9780357516720
Author: Brigham
Publisher: CENGAGE L
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Students have asked these similar questions
An analyst has collected the following information regarding YYYYY:
Earnings before interest and taxes (EBIT) = P700 million.
Earnings before interest, taxes, depreciation and amortization (EBITDA) = P850 million.
Interest expense = P200 million.
The corporate tax rate is 40 percent.
Depreciation is the company’s only non-cash expense or revenue.
What is the company’s net cash flow?
1. SSSSS’ operating income (EBIT) is P500,000. The company’s tax rate is 40 percent, and its operating cash flow is P450,000. The company’s interest expense is P100,000. What is the company’s net cash flow? (Assume that depreciation is the only non-cash item in the firm’s financial statements.)
2. Calculate a firm's free cash flow if it has net operating profit after taxes of P60,000, depreciation expense of P10,000, net fixed asset investment requirement of P40,000, a net current asset requirement of P30,000 and a tax rate of 30%
The Moore Corporation has operating income (EBIT) of $750,000. The company’s depreciation expense is $200,000. Moore is 100% equity financed,and it faces a 40% tax rate. What is the company’s net income? What is itsnet cash flow?
Chapter 6 Solutions
INTERMEDIATE FINAN...-MINDTAP(1 TERM)
Ch. 6 - Prob. 1QCh. 6 - If a “typical” firm reports $20 million of...Ch. 6 - Prob. 3QCh. 6 - What is operating capital, and why is it...Ch. 6 - Explain the difference between NOPAT and net...Ch. 6 - Prob. 6QCh. 6 - Prob. 7QCh. 6 - Prob. 1PCh. 6 - Prob. 2PCh. 6 - Prob. 3P
Ch. 6 - Prob. 4PCh. 6 - Kendall Corners Inc. recently reported net income...Ch. 6 - In its most recent financial statements,...Ch. 6 - Prob. 7PCh. 6 - Prob. 8PCh. 6 - Prob. 9PCh. 6 - Prob. 10PCh. 6 - Prob. 11PCh. 6 - Prob. 12PCh. 6 - Prob. 13PCh. 6 - Prob. 14PCh. 6 - Prob. 15PCh. 6 - Prob. 16PCh. 6 - Prob. 17PCh. 6 - Prob. 18PCh. 6 - What effect did the expansion have on sales and...Ch. 6 - Prob. 2MCCh. 6 - Prob. 3MCCh. 6 - Prob. 4MCCh. 6 - What is Computron’s free cash flow (FCF)? What are...Ch. 6 - Calculate Computron’s return on invested capital...Ch. 6 - Cochran also has asked you to estimate Computrons...Ch. 6 - Prob. 8MC
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- The Moore Corporation has operating income (EBIT) of 750,000. The companys depreciation expense is 200,000. Moore is 100% equity financed, and it faces a 40% tax rate. What is the companys net income? What is its net cash flow?arrow_forwardDukas Corporation's net cash provided by operating activities was $218,000; its net income was $203,000; its capital expenditures were $146,000, and its cash dividends were $49,000. Required: What is the company's free cash flow?arrow_forwardAn analyst has collected the following information regarding National Co.:Earnings before interest and taxes (EBIT) = P730 million.Earnings before interest, taxes, depreciation and amortization (EBITDA) = P850 million.Interest expense = P100 million.The corporate tax rate is 25 percent.Depreciation is the company’s only non-cash expense or revenue.What is the company’s net cash flow?arrow_forward
- Assume a corporation has earnings before depreciation and taxes of $82,000, depreciation of $45,000, and that it has a 25% combined tax bracket. What are the after-tax cash flows for the company?arrow_forwardb) The Moore Corporation has operating income (EBIT) of $750,000. The company’s depreciation expense is $200,000. Moore is 100% equity financed, and it faces a 40% tax rate. What is the company’s net income? What is its net cash flow?arrow_forwardUse the following financial data of Houston Corporation to answer the next two questions. Houston's Cash Flows for the year: Net Cash Flow from Operations Interest Expense Before Tax Net Change in Cash Required for Operations Net Cash Flow from Investing Net Cash from Debt Financing Effective Income Tax Rate (in thousands of dollars) 564 150 -75 -287 210 20%arrow_forward
- Moby Dick Corporation has sales of $4,920,229; income tax of $574,192; the selling, general and administrative expenses of $265,391; depreciation of $374,888; cost of goods sold of $2,777,705; and interest expense of $195,023. Calculate the amount of the firm’s after-tax cash flow from operations?arrow_forwardYour firm has the following income statement items: sales of $52,000,000; income tax of $1,880,000; operating expenses of $9,000,000; cost of goods sold of $36,000,000; depreciation and amortization of $1,500,000; and interest expense of $800,000. For purposes of determining free cash flow, what is the amount of the firm's after-tax cash flow from operations? O $750,000 O $3,600,000 O $1,008,000 O $5,120,00Oarrow_forwardThe Moore Enterprise has gross profit of $1,180,000 with amortization expense of $510,000. The Kipling Corporation has $1,180,000 in gross profits but only $75,000 in amortization expense. The selling and administration expenses are $135,000; the same for each company. If the tax rate is 20 percent, calculate the cash flow for each company. Kipling Cash flow $ Difference in cash flow Moore $ Calculate the difference in cash flow between the two firms? $arrow_forward
- Assume a corporation has earnings before depreciation and taxes of $145,000, depreciation of $35,000, and that it has a 30% combined tax bracket. What are the after-tax cash flows for the company? a) $112,000 Ob) $106,800 c) $116,600 Od) $115,800 0arrow_forwardCalculate the operating cash flow based on the following information: A company has EBIT of $10,000, the corporate tax rate is 21%, and depreciation is $7,000. O $7,900 O $17,000 O $14,900 O $2,370arrow_forwardBenson, Inc., has sales of $44830, costs of $14,370, depreciatior and interest expense of $2,390. The tax rate if 23 percent. What is the operating cash flow, or OCF?arrow_forward
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