a. Calculate Quick Burger's free cash flow in 2016. (Enter your answer in millions.)Free cash flow $b. If Quick Burger was financed entirely by equity, how much more tax would the company have paid? (Assume a tax rate of 35%.) (Donot round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.)Additional tax3,862 millionFree cash flowmillionc. What would the company's free cash flow have been if it was all-equity financed? The following table shows an abbreviated income statement and balance sheet for Quick Burger Corporation for 2016.INCOME STATEMENT OF QUICK BURGER CORP., 2016(Figures in $ millions)Net salesCostsDepreciationEarnings before interest and taxes (EBIT)Interest expensePretax incomeTaxesNet incomeAssetsCurrent assetsCash and marketable securitiesReceivablesInventoriesOther current assetsTotal current assets.Fixed assetsProperty, plant, and equipmentIntangible assets (goodwill)Other long-term assetsTotal assets2016BALANCE SHEET OF QUICK BURGER CORP., 2016(Figures in $ millions)2,3401,3791261,0934,938$ 27,57117,5731,406$ 8,59224,6812,8082,98735,4145218,0712,825$ 5,2462015 Liabilities and Shareholders' EquityCurrent liabilitiesDebt due for repaymentAccounts payableTotal current liabilities2,3401,3391216204,420Long-term debt22,839 Other long-term liabilities2,657 Total liabilities3,103 Total shareholders' equity33,019Total liabilities and shareholders' equity20163,4073,40713,6373,06120,10515,30935,41420153793,1473,52612,1382,96118,62514,39433,019

Net income$5,246Depreciation$1,406Interest$521Current assets in 2016$4,938Current liabilities in…

a. Calculate Quick Burger's free cash flow in 2016. (Enter your answer in millions.) Free cash flow $ 3,862 million . If Quick Burger was financed entirely by equity, how much more tax would the company have paid? (Assume a tax rate of 35%. ) ( Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.) Additional tax million

a. Calculate Quick Burger's free cash flow in 2016. (Enter your answer in millions.) Free cash flow $ 3,862 million . If Quick Burger was financed entirely by equity, how much more tax would the company have paid? (Assume a tax rate of 35%. ) ( Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.) Additional tax million

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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An after-tax cash flow analysis produced the data below for the year 2013. Determine the after-tax cash flow for 2013? Before-Tax-and-Loan = $23,000 Loan Principal Payment = $3,203 Loan Interest Payment = $3,878 Depreciation Deduction = $12,490 Taxable Income = $6,633 Taxes Due = $1,658 [enter your answer as a whole number, with no dollar sign or comma] 17,465
This year, Stang Fabrications Inc. has EBIT of $9,080,000, depreciation expenses of $800,000, capital expenditures of $1,000,000, and has increased its net working capital by $450,000. If its tax rate is 25%, what is its free cash flow? The company's free cash flow is $ (Round to two decimal places.)
2. The Dockside Inn has net income for the most recent year of $8,450. The tax rate was 35 percent. The firm paid $2,100 in total interest expense and deducted $1,900 in depreciation expense. What was the cash coverage ratio for the year?
Butterfly Tractors had $23.00 million in sales last year. Cost of goods sold was $9.80 million, depreciation expense was $3.80 million, interest payment on outstanding debt was $2.80 million, and the firm’s tax rate was 21%. What was the firm’s net income? Note: Enter your answer in millions rounded to 2 decimal places. What was the firm’s cash flow? Note: Enter your answer in millions rounded to 2 decimal places. What would happen to net income and cash flow if depreciation were increased by $2.80 million? Note: Enter your numeric answers in millions rounded to 2 decimal places. Select "unaffected" if the results do not affect the balance. Would you expect the change in depreciation to have a positive or negative impact on the firm’s stock price? What would be the impact on net income if depreciation was $1 million and interest expense was $2 million? What would be the impact on cash flow if depreciation was $2.80 million and interest expense was $3.80 million? Note: Enter your…
Graff, Incorporated, has sales of $55,000, costs of $25,000, depreciation expense of $2,750, and interest expense of $2,500. If the tax rate is 23 percent, what is the operating cash flow, or OCF? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) Operating cash flow
Wilson Company earned $4,000 of cash sales. Sales tax is 6%. Which of the following shows how this event would affect the company's financial statements (ignore the effects of cost of goods sold)? Assets = Liabilities + 4,000 240 240 240 240 a. b. 4,240 C. 4,240 d. 4,240 Multiple Choice Balance Sheet O Option C Option A Option B Option D Stockholders' Equity 3,760 4,000 4,000 4,000 Revenue 3,760 4,000 4,000 4,240 Income Statement Expense n/a n/a n/a n/a = Net Income 3,760 4,000 4,000 4,240 Statement of Cash Flows 3,760 OA 4,240 OA n/a 4,240 OA
Pop Evil, Incorporated's, net income for the most recent year was $10, 114. The tax rate was 22 percent. The firm paid $3,455 in total interest expense and deducted $2,104 in depreciation expense. What was the cash coverage ratio for the year? Multiple Choice 6.43 times 5.36 times 6.86 times 10.36 times 5.16 times
Suppose you sell a fixed asset for $212,000 when its book value is $112,000. If your company’s marginal tax rate is 30 percent, what will be the effect on cash flows of this sale (i.e., what will be the after-tax cash flow of this sale)?
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
I really need help on solving this correctly since I'm not understanding the problem Please help! Thank you. UCFAT is a level perpetuity. Firm Value= $ 100m Present value of tax benefits=20 million. Amount of debt= unknown. Interest rate on debt=10% Unlevered cost of Equity = 20% Depreciation= $ 1 million per year. New Equipment= 1 million per year. UCFAT is unlevered cash flow after tax Question content area bottom: Part 1 Use 99 if the answer is indeterminate a) WACC of the firm is? % (Round to two decimals) b) Tax Rate is ? % (Round to two decimals)
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Suppose you sell a fixed asset for $115,000 when it's book value is $135,000. If your company's marginal tax rate is 21%, what will be the effect on cash flows of this sale (i.e., what will be the after-tax cash flow of this sale)?

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