Intermediate Financial Management
Intermediate Financial Management
14th Edition
ISBN: 9780357516782
Author: Brigham, Eugene F., Daves, Phillip R.
Publisher: Cengage Learning
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Free Cash FlowsUsing Rhodes Corporation’s financial statements (shown after part f), answerthe following questions.a. What is the net operating profit after taxes (NOPAT) for 2018?b. What are the amounts of net operating working capital for both years?c. What are the amounts of total net operating capital for both years?d. What is the free cash flow for 2018? e. What is the ROIC for 2018?f. How much of the FCF did Rhodes use for each of the following purposes:after-tax interest, net debt repayments, dividends, net stock repurchases,and net purchases of short-term investments? (Hint: Remember that a netuse can be negative.)
Operating Cash FlowDuring 2020 your corporation has net sales of $9,625, cost of goods sold of $5,225, depreciation expense of $1,890, and tax expense of $581.  What is the 2020 operating cash flow for your corporation? Please show your formula and calculations in the space provided.
Question 3: Study the following financial statements. What was NOWC for 2017 and 2018? Show the calculation and circle your answer. Assume that all cash is excess cash; i.e., this cash is not needed for operating purposes. Calculate the Free Cash Flow in 2018. Show the calculation and circle your answer. What was 2018 EVA? Show the calculation and circle your answer. Assume that its after-tax cost of capital is 10%. What was MVA at the year-end 2018? Show the calculation and circle your answer. (Note: Share Price is $25)
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