3. The long - term liabilities of the company in 2019 and 2020 were 1.6 million and 1.7 million, respectively. The interest expenses in 2020were 150000. The shareholder's equity in 2019 was 3.2 million, the shareholder's equity in 2020 was 3.5 million, and the cash dividends paidin 2020 were 200000. The net capital expenditure in 2020 was 900000, and the net working capital decreased by 120000. What is theoperating cash flow (OCF) for 2020.

Steps(Note: Since the precise net income or non-cash expenses information was not provided, the…

Answered: 3. The long - term liabilities of the…

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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On December 2020, the company Psi SA is financed with debt and equity. This company has a cost of capital (WACC) equal to 12%. Also on December 2020, the company presented an EBIT equal to 1,500€, 350€ of amortization and 150€ of depreciation, and 300€ of corporate taxes. The company invested in fixed assets for 500€, and its working capital increased in 50€. After a decade of rapid growth, the cash flows in the last two years increased only at a constant rate of 2%, and it is expected that the cash flows will remain growing at this level in the future. Determine the value of the firm on December 2020.
Consider a company with earnings before interest and taxes (EBIT) of $450,000, tax rate of 16%, depreciation and amortization expenses of $60,000, capital expenditures of $80,000, acquisition expenses of $30,000 and change in working capital of $40,000. How much is its free cash flow during that period? Round to the nearest cent.
mni.3
16. In December 2020, Remal Co. had AED 200 million debt, AED 40 million in operating income, interest expense AED 4 million, AED 450 million in total assests and tax rate 35 percent. The ROA ratio is: ROA= Net Income + Interest exp Total assets.
For 2020, Electro Tech Inc. has reported earnings before interest and taxes (ebit) of $6.5 million; capital expenditures of $1.2 million; and depreciation of $0.7 million. Net working capital for 2020 is $1.0 million and for 2019 is $0.7 million. The tax rate for Electro Tech is 35%. Calculate Electro Tech’s free cash flow
If a company's sales are $650,000 in 2021, and this represents an 5% increase over sales in 2020, what were sales in 2020? (Round your answer to the nearest dollar amount.) Sales
For 2020, Electro Tech Inc. has reported earnings before interest and taxes (ebit) of $6.5 million; capital expenditures of $1.2 million; and depreciation of $0.7 million. Net working capital for 2020 is $1.0 million and for 2019 is $0.7 million. The tax rate for Electro Tech is 35%. Calculate Electro Tech's free cash flow. 18.
A firm had after-tax Income last year of $1.0 million. Its depreciation expenses were $0.2 million, and its total cash flow was $1.0 million. What happened to net working capital during the year? Note: Enter your answer in millions rounded to 1 decimal place. Net working capital million
Assume that today is December 31, 2021, and that the following information applies to Abner Airlines: ⚫ After-tax operating Income [EBIT(1-T)] for 2022 is expected to be $500 million. The depreciation expense for 2022 is expected to be $160 million. The capital expenditures for 2022 are expected to be $375 million. . No change is expected in net operating working capital. ⚫ The free cash flow is expected to grow at a constant rate of 7% per year. ⚫The required return on equity is 15%. The WACC is 10%. The firm has $204 million of nonoperating assets. ⚫ The market value of the company's debt is $2.885 billion. 190 million shares of stock are outstanding. Using the corporate valuation model approach, what should be the company's stock price today? Do not round intermediate calculations. Round your answer to the nearest cent.
Kk.311.
If Blue Spruce Company had net income of $312,000 in 2021 and it experienced a 26.6% increase in net income for 2022, what is its net income for 2022? Net income
A corporation has $50 billion of Earnings Before Interest and Taxes (EBIT) and $20 billion in interest expenses this year. How much interest expense can the company deduct from its EBIT in the current year? What happens if the company can’t deduct all of its interest expenses in the current year?

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