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

See similar textbooks

Similar questions

please help
You are considering an investment in National Corporation and want to evaluate the firm's free cash flow. From the income statement, you see that National Corporation's earned an EBIT of P62,000,000, paid taxes of P17,000,000, and its depreciation expense was P5,000,000. Fixed assets increased by P32,000,000 from 2015 to 2016. The firm's current assets increased by P20,000,000 and spontaneous current liabilities increased by P12,000,000. The National Corporation's operating cash flow for 2016 is * Format: 11,111,111
What is the effective tax rate that a company will end up paying if their year income is $16.7 million? The tax needs to be calculated based on the table shown below: From Below Tax + Marginal additional tax $0 $50,000 15% $50,000 $75,000 $7,500 + 25% over $50,000 $75,000 $100,000 $13,750 + 34% over $75,000 $100,000 $335,000 $22,250 + 39% over $100,000 $335,000 $10,000,000 $113,900 + 34% over $335,000 $10,000,000 $15,000,000 $3,400,000 + 35% over $10,000,000 $15,000,000 $18,333,333 $5,150,000 + 38% over $15,000,000 Group of answer choices 27.4483% 34.1007% 34.0000% 34.7066%
A company which started its operation in the year 8. The pannel set the MARR at 10% after-tax. CCA rate = 20% FOR EQUIPTMENT. a) What is the remaining Undepreciated Capital cost at the end of year 20 12? b) What is the equivalent annual worth of the tax savings associated with these transactions if the corporate tax rate is 40%?
Free Inc. has after tax operating income of $100 million. It is depreciation is $20million. The capital expenditure is $50million. Its NWC increase for $30 million, the excess cash increases for $5 million, and note payable decreases $1 million. What is the firm's free cash flow during the fiscal year in consideration (in million)? a)45 b)44 c)46 d)48
Champagne, Inc., had revenues of $12 million, cash operating expenses of $8 million, and depreciation and amortization of $1.5 million during 2020. The firm purchased $700,000 of equipment during the year while increasing its inventory by $500,000 (with no corresponding increase in current liabilities). The marginal tax rate for Champagne is 30 percent. Free cash flow: What is Champagne's cash flow from operations for 2020? $2,500,000 O $3,250,000 O $2,050,000 O $4,000,000
Holly's Art Galleries recently reported $7.9 million of net income. Its EBIT was $13 million, and its federal tax rate was 21% (ignore any possible state corporate taxes). What was its interest expense? (Hint: Write out the headings for an income statement and then fill in the known values. Then divide $7.9 million net income by 1 − T = 0.79 to find the pre-tax income. The difference between EBIT and taxable income must be the interest expense.) Enter your answer in dollars. For example, an answer of $1.2 million should be entered as 1,200,000. Round your answer to the nearest dollar.
Please help me.
A firm buys a piece of equipment for $115,866.00 and will straight-line depreciate it to zero over five years. If the tax rate is 39.00%, what is the present value of the depreciation tax shield if the cost of capital is 10.00%? Submit Answer format: Currency: Round to: 2 decimal places. Show Hint
Mojave Corporation was looking at an investment that would generate $5,000 in net income before taxes. The company's tax rate is 21%, and there would be $2,000 a year in depreciation on the assets. What is the after-tax cash flow of this investment? $4,370 $5,950 $3,050 $3,950 O None of the above
Holly's Art Galleries recently reported $15.8 million of net income. Its EBIT was $26 million, and its federal tax rate was 21% (ignore any possible state corporate taxes). What was its interest expense? (Hint: Write out the headings for an income statement and then fill in the known values. Then divide $15.8 million net income by 1 − T = 0.79 to find the pre-tax income. The difference between EBIT and taxable income must be the interest expense.) Enter your answer in dollars. For example, an answer of $1.2 million should be entered as 1,200,000. Round your answer to the nearest dollar.
(Corporate income tax) Meyer Inc. has taxable income (earnings before taxes) of $300,000. Calculate Meyer's federal income tax liability using the tax table shown in the popup window: What are the firm's average and marginal tax rates? The firm's tax liability for the year is $. (Round to the nearest dollar.) Etext pages 2 W S mmand X Get more help # 3 80 F3 E D C $ 4 ODD 988 R F % 5 V FS T G 6 B MacBook Air F6 Y H & 7 F7 U N * 8 J PIL 1 M ( 9 K MOSISO DD F9 O ; FW1 { + [ option ? "1 1 Question Viewer 41 FYZ } delete return

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS