In its most recent fiscal year, Boba Tea Corp reported net income of $300,000,000. Looking at its financialstatements, we observe that the firm reported depreciation expenses of $125,000,000 and capital expenditures of$150,000,000. The firm had no debt but did experience an increase in NWC of $20,000,000. What is Boba Tea'sfree cash flow?Select one:O a. $170 millionb. $255 millionc. $150 milliond. $5 millionClear my choice-

In this problem we simply have to use the formula to calculate the FCF ( Free cash flow ). The…

In its most recent fiscal year, Boba Tea Corp reported net income of $300,000,000. Looking at its financial statements, we observe that the firm reported depreciation expenses of $125,000,000 and capital expenditures $150,000,000. The firm had no debt but did experience an increase in NWC of $20,000,000. What is Boba Tea's free cash flow? Select one: O a. $170 million b. $255 million c. $150 million d. $5 million

In its most recent fiscal year, Boba Tea Corp reported net income of $300,000,000. Looking at its financial statements, we observe that the firm reported depreciation expenses of $125,000,000 and capital expenditures $150,000,000. The firm had no debt but did experience an increase in NWC of $20,000,000. What is Boba Tea's free cash flow? Select one: O a. $170 million b. $255 million c. $150 million d. $5 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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Kirkwood Corp has the following financial information: • EBITDA = $200 • Interest Expense = $20 • Tax Rate = 30% • Depreciation/ Amortization = $50 • Capital Expenditures = $30 • Change in NWC = = $15 Calculate operating free cash flow. (Note this cash flow is sometimes referred to as Enterprise FCF or Unlevered FCF) Round to nearest whole number
According to the free cash flow valuation model, the value of a company’s operations is $750 million. The company’s balance sheet shows $50 million in short-term investments that are unrelated to operations. The balance sheet also shows $100 million in accounts payable, $100 million in notes payable (interest-bearing) , $200 million in long-term debt (interest-bearing), $40 million in common stock (par plus paid-in-capital), and $160 million in retained earnings. What is your best estimate for the market value of equity? $200 million $300 million $400 million $500 million $600 million
You have gathered this information on a firm: $500,000 sales, $10,000 cash dividends, $300,000 cost of goods sold, $20,000 administrative expense, $20,000 depreciation expense, $40,000 interest expense, $40,000 purchase of productive equipment, no changes in working capital, and a tax rate of 21%. What is the free cash flow?
Xanu Company's current value of operations is $4,079 million, with $679 million due to free cash flows occurring in Years 1 to 5, and 3,400 million due to free cash flows beyond Year 5 (the horizon date). What percent of value is due to expected long-term cash flows occurring beyond the horizon date?
Titan SpA’s net income for the most recent year was €4,850. The tax rate was 33 per cent. The firm paid €2,108 in total interest expense and deducted €1,687 in depreciation expense. What was Titan’s cash coverage ratio for the year?
Suppose a firm has the following information: Cash = $500,000; short-term investments = $2.5 million; accounts receivable = $1.2 million; net plant and equipment = $7.8 million. How much is tied up in operating current assets?
You are considering an investment in WEST Corporation and want to evaluate the firm's cash flow. From the income statement, you see that the WEST Corporation earned an EBIT of P62 million, paid taxes of P17 million, and its depreciation expense was P5 million. Fixed assets increased by P32 million from 20X4 to 20X5. The firm's current assets increased by P20 million and spontaneous current liabilities increased by P12 million. Calculate WEST Corporation's operating cash flow, investment in operating capital and free cash flow for 20X5.
Current Attempt in Progress In the Crane Corporation, cash receipts from customers were $135000, cash payments for operating expenses were $101000, and one-third of the company's $8400 income taxes were paid during the year. Net cash provided by operating activities is: O $25600. O $28400. O $34000. O $31200.
A firm has recorded EBIT at $1,800, depreciation at $600, EBT at $1,700 and a tax rate of 40%. Find the operating cash flows for this firm. Hin #1t: Operating CF = EBIT + depreciation - tax. Hint #2: Tax = EBT * tax rate.
hi, this is my finance question. i need answer asap. thxx
Suppose Canwest Global Communications Corp. reported net cash used by operating activities of $107,675,170 and sales revenue of $2,953,482,770 during 2022. Cash spent on plant asset additions during the year was $81,709,900. Calculate free cash flow. (Show a negative free cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) Free cash flow $ 25,965,270 %24
The management of Oriole Company is trying to decide whether it can increase its dividend. During the current year, it reported net income of $876,000. It had net cash provided by operating activities of $735,000, paid cash dividends of $93,000, and had capital expenditures of $310,000. (a1) Compute the company's free cash flow. (Show a negative free cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) The company's free cash flow $ %24

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