ASDF Corporate Income StatementCurrent YearUnits Sold100,000$37.84$3, 784,000$1,284,000Unit PriceSales RevenueVariable Expenses (Materials &Labor)Fixed Expenses (Marketing &Overhead)Earnings Before Interest & Taxes$350,000$2,150,000(ЕВIT)$198,000$1,952,000Paid InterestEarnings Before Taxes (EBT)$664,000ТахesNet Income after Taxes (NIAT)$1,288,000$258,000DividendsRetained Earnings$1,030,000 15. Given the above Degree of Combined Leverage (DCL), a 15% increase in sales would lead to whatPercent and Dollar increase in Net Income After Taxes (NIAT)?% Increase in NIAT= % Increase in Sales X DCLх$Increase in NIAT= % Increase in NIAT X NIATх

Hence, Combined leverage has a degree of 1.28, which is determined by dividing the difference of…

Answered: ASDF Corporate Income Statement Current…

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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5. Eagle Products' EBIT is $680, its tax rate is 30%, depreciation is $42, capital expenditures are $82, and the planned increase in net working capital is $48. What is the free cash flow to the firm?
4. We only have OMR 800,000 to invest. Which do we select based on Weighted average profitability index method ? Project NPV Investment PI A 430,000 500,000 B 241,250 225,000 C 394,250 375,000 D 262,000 575,000
Please answer fast.
Use the information below to calculate WACC given the Market Capitalization of the company: Market Cap = 193.2 Million EBIT = 17.2 Million Depreciation = 4.2 Million Capital Expenditures = - 3.8 Million Change in W/C = 2.1 Million growth = 7% FCF = ? WACC = ?
Use the table for the question(s) below. FCF Forecast ($ million) Year Sales 1 270 12.5% 32.40 Less: Income Tax (37%) (6.48) Less Increase in NWC (12% of Change in Sales) 3,60 Free Cash Flow 22.32 Growth versus Prior Year EBIT (10% of Sales) 0 240 OA. $4.27 OB. $7.47 OC. $12.8 OD. $5.12 2 290 7.4% 34.80 (6.96) 2.40 25.44 ACCE 3 310 6.9% 37.20 (7.44) 2.40 27.36 Banco Industries expect sales to grow at a rapid rate over the next 3 years, but settle to an industry growth rate of 4% in year 4. The spreadsheet above shows a simplified pro forma for Banco Industries. Banco industries has a weighted average cost of capital of 10%, $30 million in cash, $60 million in debt, and 18 million shares outstanding. If Banco Industries can reduce its operating expenses so that EBIT becomes 12% of sales, by how much will its stock price increase? 4 325.5 5.0% 39.06 (7.81) 1.86 29.388
Find the present value of the following stream of a firm's cash flows, assuming that the firm's opportunity cost is 8%. End of year Cash flow 1 2 3 $5,000 $25,000 $14,000
4. Calculating OCF [LO1] Consider the following income statement: Sales $747,300 582,600 Depreciation 89,300 Costs EBIT Taxes (22%) ? Net income ? Fill in the missing numbers and then calculate the OCF. What is the depreciation tax shield?
Hello please help me option for b part are also given
XYZ company expects in the coming year: sales of 40000 units at $10 per unit, variable operating costs of $4 per unit, fixed operating costs of $30000, interest of $50000, and preferred stock dividends of $24000. The Company is in the 40% tax bracket. a. Compute the following and explain their meaning: 1- Degree of Operating Leverage (DOL). 2- Degree of Financial Leverage (DFL). 3- Degree of Total Leverage (DTL). b. If XYZ company’s Earnings Per Share (EPS) is currently $7.2, estimate its EPS in case of a 10% increase in earnings before interest and tax (EBIT).
son.1
Q1. Revenues Advertisement Salaries Sale of scrape Year 1 100000 4000 20000 Year 2 150000 5000 30000 Year 3 140000 3000 30000 5000 Year 4 110000 30000 Year 5 150000 35000 2000 Initial Investment Rs.200000 required rate of return on investment is 12% Required: (i) NPV, (ii) IRR and (iii) Payback period, and (iv) Discounted Payback Period.
6

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