Last year Rocco Corporation's sales were $650 million. If sales grow at 6.0% per year, how large (in millions) will they be 8 years later? O a. $977.36 million Ob. $689.00 million O c. $1,066.33 million Od. $962.00 million Oe. $1,036.00 million
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- The Berndt Corporation expects to have sales of 12 million. Costs other than depreciation are expected to be 75% of sales, and depreciation is expected to be 1.5 million. All sales revenues will be collected in cash, and costs other than depreciation must be paid for during the year. Berndts federal-plus-state tax rate is 40%. Berndt has no debt. a. Set up an income statement. What is Berndts expected net income? Its expected net cash flow? b. Suppose Congress changed the tax laws so that Berndts depreciation expenses doubled. No changes in operations occurred. What would happen to reported profit and to net cash flow? c. Now suppose that Congress changed the tax laws such that, instead of doubling Berndts depreciation, it was reduced by 50%. How would profit and net cash flow be affected? d. If this were your company, would you prefer Congress to cause your depreciation expense to be doubled or halved? Why?Carter Swimming Pools has $16 million in net operating profit after taxes (NOPAT) in the current year. Carter has $12 million in total net operating assets in the current year and had $10 million in the previous year. What is its free cash flow?Last year Rocco Corporation's sales were $700 million. If sales grow at 6.0% per year, how large (in millions) will they be 8 years later? a. $1,148.35 million b. $1,036.00 million c. $1,115.69 million d. $742.00 million e. $1,052.54 million
- Last year Dania Corporation's sales were $525 million. If sales grow at 11.3% per year, how large (in millions) will they be 6 years later? O a. $880.95 million Ob. $998.00 million Oc. $584.33 million Od. $896.68 million Oe. $1,078.00 millionLast year Mike Corporation's sales were $134 million. If sales grow at 8% per year, how large (in millions) will they be 4 years later? Select one: a. $181.17 b. $186.21 c. $182.31 d. $185.10Cochrane Associate's net sales last year were $525 million. If sales grow at 7.5% per year, how large (in millions) will they be 8 years later? $845.03 $889.51 $936.33 $983.14 $1,032.30
- Young & Liu Inc.'s free cash flow during the just-ended year (t = o) was $100 million, and FCF is expected to grow at a constant rate of 5% in the future. If the weighted average cost of capital is 15%, what is the firm's value of operations, in millions? a. $998 O b. $1,050 Oc$1,158 Od. $948 Oe. $1,103Ellen now has $125. How much would she have after 8 years if she leaves it invested at 8.5% with annual compounding? a. $205.83 b. $216.67 c. $228.07 d. $240.08 e. $252.08 Last year Rocco Corporation's sales were $225 million. If sales grow at 6% per year, how large (in millions) will they be 5 years later? a. $271.74 b. $286.05 c. $301.10 d. $316.16 e. $331.96 How much would $20,000 due in 50 years be worth today if the discount rate were 7.5%? a. $438.03 b. $461.08 c. $485.35 d. $510.89 e. $537.78If sales increase from R80 000 per year to R120 000 per year, and if the operating leverage is 5, then net income should increase by: A. 167%. B. 100%. C. 334%. D. 250%.
- 1. You have the following information on the income statement this year: Unit sales: 1,000 price/unit: 49 VC/unit: 25 FC/year: 10,000 De[/year: 5,000 On the balance sheet last year, total asset is $20,000 and total equity is $5000. The dividend payout ration is 25%, the interest rate is 10% and the tax rate is 35%. How much interest does the firm pay? 2. You have the following information on the income statement this year: Unit sales: 1,000 Price/unit: 49 VC/unit: 25 FC/year: 10,000 Dep/year: 5,000 On the balance sheet last year, total asset is $20, 000 and total equity is $5,000. The dividend payout ratio is 25%, the interest rate is 10%, and the tax rate is 35%. What is the firm's EBITLast year Dania Corporation's sales were $525 million. If sales grow at 10.5% per year, how large (in millions) will they be 8 years later?Hernandez Corporation expects to have the following data during the coming year. What is Hernandez's expected ROE? (Show your work) Assets = $200,000 D/A = 65% EBIT = $25,000 Interest rate = 8% Tax rate = 40%