12. A firm's total Free Cash Flow forthe year equaled $4,400. Theyreported an EBIT of $5,000,Depreciation Expense of $1,200, andCapital Expenditures of $2,500. Theircorporate tax rate is 40%. How muchwas their change in net workingcapital for the year?Increase by $1700Decrease by $2700Increase by $3,100Decrease by $3,100None of the above

Free cash flow = $4400 EBIT = $5000 Depreciation = $1200 Capital expenditure = $2500 Tax rate = 40%…

12. A firm's total Free Cash Flow for the year equaled $4,400. They reported an EBIT of $5,000, Depreciation Expense of $1,200, and Capital Expenditures of $2,50O. Their corporate tax rate is 40%. How much was their change in net working capital for the year? * Increase by $1700 Decrease by $2700 Increase by $3,100 Decrease by $3,100 None of the above

12. A firm's total Free Cash Flow for the year equaled $4,400. They reported an EBIT of $5,000, Depreciation Expense of $1,200, and Capital Expenditures of $2,50O. Their corporate tax rate is 40%. How much was their change in net working capital for the year? * Increase by $1700 Decrease by $2700 Increase by $3,100 Decrease by $3,100 None of the above

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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DataDyne Company reported EBIT of $590 million for the most recent fiscal year. Interest expense were $10 million and the current tax rate was 20%. The firm had depreciation expenses of $100 million and capital expenditures of $150 million. In addition, the firm did have a decrease in net working capital of $30 million. What is DataDyne's free cash flow?
10. Intellus has long-term debt of $5 million, owners' equity of $7.75 million, current assets of $1 million, gross fixed assets of $20 million, and accumulated depreciation of $7 million. What is the firm's net working capital?
Ehrlich & Czarnecki Consulting, Inc. recently reported the following information: Net income = $800,000 Sales = $4,200,000 Total Assets = $9.5 million Tax rate = 40% Interest expense = 20,000 Accounts Payable = 36,000 Notes Payable = 300,000 Accruals = 50,000 After-tax cost of capital = 11% What is the company’s EVA? $-296,358 $-223,540 $-452,391 $-488,029 None of the above is within $100 of the correct answer.
Broward Manufacturing recently reported the following information: Net income ROA BEP: 26.73 Interest expense $102,120 Accounts payable and accruals $950,000 Broward's tax rate is 25%. Broward finances with only debt and common equity, so it has no preferred stock. 40% of its total invested capital is debt, and 60% of its total invested capital is common equity. Calculate its basic earning power (BEP), its return on equity (ROE), and its return on invested capital (ROIC). Do not round intermediate calculations. Round your answers to two decimal places. ROE: 73.60 ROIC: 44.55 % % $276,000 % 8%
Vijay
A firm has sales of $10,000, EBIT of $3,000, depreciation of $400, and fixed assets increased by $2,000. If the firm's tax rate is 30 percent and there were no increases in net operating working capital, what is the firm's free cash flow? Multiple Choice O O $500 $600 $7400 -$1,220
King Lyon has the following assets: Current assets Capital assets Total assets $3,280,000 8,150,000 $11,430,000 During 4 months of the year, current assets drop to $1,650,000 (total assets will then be $9,800,000). Its operating profit (EBIT) is expected to be $499,500. Its tax rate is 30 percent. Shares are valued at $20. Its capital structure is short-term financing at 3 percent and long-term financing of 30 percent equity, 70 percent debt at 4 percent. a. Calculate expected EPS if the firm is perfectly hedged. (Do not round intermediate calculations and round your final answer to 2 decimal places.) EPS $
Provide Answer in text mode
RJS generated $78,000 net income this year. The firm's financial statements also show that its interest expense was $40,000, its marginal tax rate was 35 percent, and its invested capital was $1,000,000. If its average cost of funds is 11 percent, what was RJS's economic value added (EVA) this year? Round your answer to the nearest dollar. Use a minus sign to enter a negative value, if any. $ _______
Broward Manufacturing recently reported the following information: $507,000 10% Interest expense $187,590 $1,050,000 Accounts payable and accruals Broward's tax rate is 25%. Broward finances with only debt and common equity, so it has no preferred stock. 40% of its total invested capital is debt, and 60% of its total invested capital is common equity. Calculate its basic earning power (BEP), its return on equity (ROE), and its return on invested capital (ROIC). Do not round intermediate calculations. Round your answers to two decimal places. Net income ROA BEP: ROE: ROIC: % % %

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