In 2022 Quick Burger had capital expenditures of $3,064. a. Calculate Quick Burger's free cash flow in 2022. Note: Enter your answer in millions. b. If Quick Burger was financed entirely by equity, how much more tax would the company have paid? (Assume a tax rate of 21%.) Note: Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places. c. What would the company's free cash flow have been if it was all-equity financed? Note: Do not round intermediate calculations. Enter your answer in millions rounded to the nearest whole number. X Answer is complete but not entirely correct. a. Free cash flow b. Additional tax c. Free cash flow $ 7,776 $ 3,224.31 $ 4,552 million million million
In 2022 Quick Burger had capital expenditures of $3,064. a. Calculate Quick Burger's free cash flow in 2022. Note: Enter your answer in millions. b. If Quick Burger was financed entirely by equity, how much more tax would the company have paid? (Assume a tax rate of 21%.) Note: Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places. c. What would the company's free cash flow have been if it was all-equity financed? Note: Do not round intermediate calculations. Enter your answer in millions rounded to the nearest whole number. X Answer is complete but not entirely correct. a. Free cash flow b. Additional tax c. Free cash flow $ 7,776 $ 3,224.31 $ 4,552 million million 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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Question
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Subject
Finance
Transcribed Image Text:INCOME STATEMENT OF QUICK BURGER CORPORATION,
(Figures in $ millions)
Net sales
Costs
Depreciation
Earnings before interest and taxes (EBIT)
Interest expense
Pretax income
Federal taxes (@21%)
Net income
Assets
Current assets
Cash and marketable securities
Receivables
Inventories
Other current assets
Total current assets
curr
Fixed assets
Property, plant, and equipment
Intangible assets (goodwill)
Other long-term assets
Total assets
2022
2022
$ 27,582
17,584
1,417
$ 8,581
BALANCE SHEET OF QUICK BURGER CORPORATION, 2022
(Figures in $ millions)
2021
$ 2,351
1,390
137
1,104
$ 4,982
532
8,049
1,690
$ 6,359
$ 24,692
2,819
2,998
$ 35,491
In 2022 Quick Burger had capital expenditures of $3,064.
$ 2,351
1,350
132
631
$ 4,464
Liabilities and Shareholders' Equity
Current liabilities
Debt due for repayment
Accounts payable
Total current liabilities
Long-term debt
$ 22,850
Other long-term liabilities
2,668
Total liabilities
3,114
Total shareholders' equity
$ 33,096 Total liabilities and shareholders' equity
2022
$ 3,418
$3,418
$ 13,648
3,072
$ 20,138
15,353
$ 35,491
2021
$ 412
3,158
$ 3,570
$ 12,149
2,972
$ 18,691
14,405
$ 33,096
Transcribed Image Text:In 2022 Quick Burger had capital expenditures of $3,064.
a. Calculate Quick Burger's free cash flow in 2022.
Note: Enter your answer in millions.
b. If Quick Burger was financed entirely by equity, how much more tax would the company have paid? (Assume a tax rate of 21%.)
Note: Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.
c. What would the company's free cash flow have been if it was all-equity financed?
Note: Do not round intermediate calculations. Enter your answer in millions rounded to the nearest whole number.
> Answer is complete but not entirely correct.
a. Free cash flow
$ 7,776 million
b. Additional tax
$
3,224.31 x million
c. Free cash flow
$
4.552 million
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