Free Cash Flow Iron Ore Corporation reported free cash flows for 2022 of $114 million and Investment in operating capital of $184 million. Iron Ore listed $34 million in depreciation expense and $56 million in taxes on its 2022 Income statement. What was Iron Ore's 2022 EBIT? Multiple Choice Ф $298 million $388 million $320 million $148 million

Free Cash Flow Iron Ore Corporation reported free cash flows for 2022 of $114 million and Investment in operating capital of $184 million. Iron Ore listed $34 million in depreciation expense and $56 million in taxes on its 2022 Income statement. What was Iron Ore's 2022 EBIT? Multiple Choice Ф $298 million $388 million $320 million $148 million

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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d. From your answers to parts a-c, which project would be selected? ↑ If the WACC was 18%, which project would be selected? î e. Construct NPV profiles for Projects A and B. Round your answers to the nearest cent. Do not round your intermediate calculations. Negative value should be indicated by a minus sign. Discount Rate 0% Project B: 5 10 12 15 18.1 23.97 % NPV Project A $ % $ % $ $ f. Calculate the crossover rate where the two projects' NPVs are equal. Round your answer to two decimal places. Do not round your intermediate calculations. NPV Project B $ +A g. What is each project's MIRR at a WACC of 18%? Round your answer to two decimal places. Do not round your intermediate calculations. Project A: tA
Income from Net Cash Year Operations Flow $100,000 $180,000 2 40,000 120,000 40,000 100,000 10,000 90,000 10,000 120,000 The net present value for this investment is 4, 5.
answer is Net Cash Flow: 59,468,971 and Reasonable Price: 9,893,794 please provide solution
Outdoor Lighting Supply expects the following for 2018: Net cash provided by operating activities of $275,000 Net cash provided by financing activities of $70,000 Net cash provided by investing activities of $82,000 Cash dividends paid to stockholders of $25,000 Outdoor expects to spend $158,000 to modernize its showroom. How much free cash flow does Outdoor expect for 2018? A. $117,000 B. $262,000 C. $92,000 D. $98,000
Subject: acounting
a) Compute Magna Corp's Free Cash Flow assuming the following: $400 million Operating income: Depreciation & amortization: Interest expense: Capital expenditures: $30 million $40 million 120% of depreciation & amortization Income tax rate: 35% Dividends: Increase in accounts receivable: Decrease in inventory: Decrease in accounts payable: $20 million $10 million $5 million $15 million b) Using a 2% perpetuity growth model and a WACC of 10%, what is the expected value of Magna Corp? Using the Dividend Discount Model and the same assumptions as in (b), c) propose a value for Magna Corp.
Year 2026 Wildhorse Industries has the following patents on its December 31, 2024, balance sheet. 2027 2028 (a) Patent Item Patent A Patent B Patent C (b) 1. 2. Initial Cost 3. $44,064 $16,920 $22,080 The following events occurred during the year ended December 31, 2025. Expected Future Cash Flows $2,150 2,150 2,150 Click here to view factor tables. Research and development costs of $246,000 were incurred during the year. Patent D was purchased on July 1 for $45,030. This patent has a useful life of 9¹/2 years. As a result of reduced demands for certain products protected by Patent B, a possible impairment of Patent B's value may have occurred at December 31, 2025. The controller for Wildhorse estimates the expected future cash flows from Patent B will be as follows. Your answer is correct. Date Acquired The proper discount rate to be used for these flows is 8%. (Assume that the cash flows occur at the end of the year.) Total carrying amount $ 3/1/21 7/1/22 * Your answer is incorrect.…
Present value index Tasty Doughnuts has computed the net present value for capital expenditure at two locations. Relevant data related to the computation are as follows: Des Moines Cedar Rapids $277,680 (267,000) $10,680 Total present value of net cash flow Amount to be invested Net present value a. Determine the present value index for each proposal. Round your answers for the present value index to two decimal places. Total present value of net cash flow Amount to be invested Present value index $302,100 (318,000) $(15,900) I Des Moines b. Which location does your analysis support? (If both present value indexes are the same, either location will grade as correct.) 1. Cedar Rapids because the net present value index is
EBITDA multiple Terminal value in 2027 8.0 x Present value of terminal value Present value of stage 1 cash flows Enterprise value (stage 1 + 2) 6,621,062 Using the above information, what is the enterprise value of the firm if the cost of capital is 10%?
Innovated designs recently reported $230000 of sales $140500 off operating costs other than depreciation $9,200 of depreciation the company had $35250 off outstanding bonds than carry a 6.75% interest rate and its tax rate was 35%. In order to sustain its operations the form spent $ $15250 on new fixed assets and invested an additional $6750 in net operating working capital. What was the firms free cash flow?
Last year, Industrial Industries had Operating Cash Flow of 125,000. It had Net Capital Spending of 45,000 and an investment in Net Working Capital of 15,000. What was its Cash Flow from Assets (or Free Cash Flow)? Question 4 options: ($65,000) $85,000 $95,000 $155,000 $65,000