For the XYZ corporation in 2021: Long Term Operating Capital Net Working Capital Long Term Debt Shareholders Equity Net Income Net Operating Profits after Taxes (NOPAT) Weighted Average Cost of Capital What is their Free Cash Flow for 2021? $922 $732 $764 $890 YE 2020 $4,701 MM $ 799 MM $2,813 MM $3,002 MM Full Year 2021 $ 997 MM $1,155 MM 8.00% YE 2021 $4,934 MM $ 831 MM $2,945 MM $3,014 MM

For the XYZ corporation in 2021: Long Term Operating Capital Net Working Capital Long Term Debt Shareholders Equity Net Income Net Operating Profits after Taxes (NOPAT) Weighted Average Cost of Capital What is their Free Cash Flow for 2021? $922 $732 $764 $890 YE 2020 $4,701 MM $ 799 MM $2,813 MM $3,002 MM Full Year 2021 $ 997 MM $1,155 MM 8.00% YE 2021 $4,934 MM $ 831 MM $2,945 MM $3,014 MM

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

Based on the given information, how much is the weighted average cost of capital? *
What is the weighted average cost of capital for a corporation that finances an expansion project using 40% retained earnings and the rest as debt capital? Assume the interest rates are 13% for equity financing and 27% for debt financing. The rate of return per quarter is __ % The rate of return per year is __%
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 $14,000
The following is a four-year forecast for Torino Marine. Year Free cash flow ($ millions) 2022 -63 a. Fair market value b. Fair market value per share 2023 84 2024 101 a. Estimate the fair market value of Torino Marine at the end of 2021. Assume that after 2025, earnings before interest and tax will remain constant at $200 million, depreciation will equal capital expenditures in each year, and working capital will not change. Torino Marine's weighted-average cost of capital is 9 percent and its tax rate is 20 percent. Note: Do not round intermediate calculations. Enter your answer in millions rounded to 1 decimal place. million 2025 123 b. Estimate the fair market value per share of Torino Marine's equity at the end of 2021 if the company has 48 million shares outstanding and the market value of its interest-bearing liabilities on the valuation date equals $380 million. Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
Additional Funds Needed The Booth Company's sales are forecasted to double from $1,000 in 2019 to $2,000 in 2020. Here is the December 31, 2019, balance sheet: Cash Accounts receivable Inventories Net fixed assets $100 200 200 500 Accounts payable Notes payable Accruals Long-term debt Common stock Retained earnings Total liabilities and equity $ 50 150 50 400 100 250 $1,000 Total assets $1,000 Booth's fixed assets were used to only 50% of capacity during 2019, but its current assets were at their proper levels in relation to sales. All assets except fixed assets must increase at the same rate as sales, and fixed assets would also have to increase at the same rate if the current excess capacity did not exist. Booth's after-tax profit margin is forecasted to be 5% and its payout ratio to be 50%. What is Booth's additional funds needed (AFN) for the coming year? Round your answer to the nearest dollar. $ Check My Work
Given the following data for Year 1: Earnings before Interest and Tax = $11 million; Interests = $3 million, Taxes = $2 million; Depreciation = $4 million; Investment in fixed assets = 5 million; Investment net working capital = $1 million. Calculate the free cash flow (FCF) for Year 1: Group of answer choices $8 million $9 million $6 million $7 million
Need all three parts
Find teh present value of the streams of cash flows shown in the following table. Assume that the firms opportunity cost is 14% A: Year Cash Flow 1 -$2100 2 2900 3 4000 4 5900 5 8200 B: Year Cash Flow 1 $9000 2-5 $5000/yr 6 $7200 C: Year Cash Flow 1-5 $12000/yr 6-10 $8000/yr The presevent vaule of stream A, B, and C
Fordson has the following financial information for FY 2023 (in thousands): Operating revenue Salary expense Depreciation expense All other operating expenses Tax expense (20% tax rate) Net Income Expected working capital increase of Capital expenditure What is free cash flow? O 420 720 820 O 1120 O Cannot be calculated 4000 1000 400 1200 280 1120 300 400
Notes for 2024: Sales are estimated to be $85,000 in 2024 Assume the following: COGS are Variable $2000 of the Operating Expenses are Fixed Depreciation and the Remainder of the Operating Expenses are Fixed The firm will maintain its dividend payout ratio this year Cash, Accounts Receivable, Inventories, Net Plant, Accounts Payable and Accrued Payables are Spontaneous Market Securities, Bonds Payable and Common Stock are Discretionary $500 of Bonds Payable are Current and Will be Repaid at the Beginning of the Year Below is the 2023 Income Statement and Balance Sheet data you will be using to complete your forecast. Income Statement For the Year Ended December 31, 2023 Sales 70,000 COGS 45,000 Gross Profit 25,000 Operating Expenses 8,000 Depreciation 5,000 13,000 EBIT 12, 000 Interest Expense 1,300 EBT 10, 700 Tax Expense 2, 247 Earning After Taxes 8, 453 Dividends 3,000 Addition to Retained Earnings 5, 453 Balance Sheet December 31, 2023 Cash 8, 100 Marketable Securities 2,000…
If the state tax rate is 20% and the federal tax rate is 30%, what is the total effective tax rate? a. 34% b. 50% c. 44% d. 37% 2. Holding all other variables constant, which of the following would increase return on equity? An increase in _____________. a. the tax rate b. the equity ratio (equity/total assets) c. total assets d. total asset turnover
The rate of return for a capital investment represented by the following cash flow table is most nearly:

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