Operating Cash Flow Net Working Capital CAPEX Debt Shares Outstanding Global Exports Inc. ($000s) Last Year 93,435 325,000 22,876 450,255 50,000 Next Year 103,462 344,000 28,975 485,850 50,000 sume that free cash flow is paid at the end of each year and we are at the beginning of next year. Last year's values are

Operating Cash Flow Net Working Capital CAPEX Debt Shares Outstanding Global Exports Inc. ($000s) Last Year 93,435 325,000 22,876 450,255 50,000 Next Year 103,462 344,000 28,975 485,850 50,000 sume that free cash flow is paid at the end of each year and we are at the beginning of next year. Last year's values are

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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Similar questions

Use the table for the question(s) below FCF Forecast (5 million) Year Sales Growth vs. Prior Year EBIT (10% of Sales) Less: Income Tax (37%) 0 240 Less: Increase in NWC (12% of Change in Sales). Free Cash Flow OA. $8.64 OB. $17.28 OC. $9.60 OD. $4.80 1 270 12.5% 27,00 (0.99) 3.6. 13.41 2 290 7.4% 29,00 10.73 2.4. 15.87 3 310 ETTE 6.9% 31.00 11.47 24 17.13 325.5 5.0% 32.55 12.44 Banco Industries expect sales to grow at a rapid rate over the next three years, but settle to an industry growth rate of 4% in year 4. The spreadsheet above shows a simplified pro forma for Banco Industries. If Banco industries has a weighted average cost of capital of 12%, $30 million in cash, $60 million in debt, and 18 milion shares outstanding, which of the following is the best estimate of Banco's stock price at the start of year 17 1.86 18.65
Given data: Sales $2,000.000 OpCap $1,120,000 Wacc 9% OP = Nopat/sales 4.5% CR = OpCap/sales 56% Year Rate growth (%) Sales Nopat OpCap Free Cash Flow (FCF) Free Cash Flow - Growth ROIC 0 - $2,000.000 $90.000 $1,120.000 - - - 1 0.10 $2,200.000 $99.000 $1,232.000 $(13.000) - 8.04% 2 0.08 $2,376.000 $106.920 $1,330.560 $8.360 -164.31% 8.04% 3 0.05 $2,494.800 $112.266 $1,397.088 $45.738 447.11% 8.04% 4 0.05 $2,619.540 $117.879 $1,466.942 $48.025 5.00% 8.04% Assume growth rates are at their original levels. What is the impact of simultaneous improvements in operating profitability and capital requirements, the impact of simultaneous improvements in the growth rates, operating profitability, and capital requirements?
Given data: Sales $2,000.000 OpCap $1,120,000 Wacc 9% OP = Nopat/sales 4.5% CR = OpCap/sales 56% Year Rate growth (%) Sales Nopat OpCap Free Cash Flow (FCF) Free Cash Flow - Growth ROIC 0 - $2,000.000 $90.000 $1,120.000 - - - 1 0.10 $2,200.000 $99.000 $1,232.000 $(13.000) - 8.04% 2 0.08 $2,376.000 $106.920 $1,330.560 $8.360 -164.31% 8.04% 3 0.05 $2,494.800 $112.266 $1,397.088 $45.738 447.11% 8.04% 4 0.05 $2,619.540 $117.879 $1,466.942 $48.025 5.00% 8.04% Assume growth rates are at their original levels. What happens to the ROIC and current value of operations if the operating profitability ratio increases to 5.5%? Now assume growth rates and operating profitability ratios are at their original levels. What happens to the ROIC and current value of operations if the capital requirement ratio decreases to 51%?
Projected Operating Assets Berman & Jaccor Corporation's current sales and partial balance sheet are shown below. Sales Balance Sheet: Assets Cash $ Short-term investments Accounts receivable Inventories Total current assets Net fixed assets Total assets This year $1,000 $100 $ 90 $ 300 $250 $740 $400 $1,140 Sales are expected to grow by 8% next year. Assuming no change in operations from this year to next year, what are the projected total operating assets? Do not round intermediate calculations. Round your answer to the nearest dollar.
Use the table for the question(s) below. FCF Forecast (S million) Year Sales 1 270 12.5% 27.00 (5.40) Less Increase in NWC (12% of Change in Sales) 3.60 Free Cash Flow 18.00 Growth versus Prior Year EBIT (10% of Sales) Less: Income Tax (20%) 0 240 OA. $46.15 B. $25.64 OC. $12.82 D. $23.07 2 290 7.4% 29.00 5.80 2.40 20.80 • 3 310 6.9% 31.00 6.20 2.40 22.40 4 325.5 5.0% 32.55 6.51 1.86 2418 Banco Industries expect sales to grow at a rapid rate over the next three years, but settle to an industry growth rate of 7% in year 4. The spreadsheet above shows a simplified pro forma for Banco Industries. If Banco industries has a weighted average cost of capital of 11%, $30 million in cash, $60 million in debt, and 18 million shares outstanding, which of the following is the best estimate of Banco's stock price at the start of year 1?
3. Refer to the following table of cash flows: End of Year 8 12 16 ΕΟ Cash Flow P5,000 P5,000 P5,000 P5,000 P5,000 What is the annual worth of these cash flows over 16 years when i = 5% per year?
1- Calculate the rate of return to be obtained for the investment to be made in the 1st year according to the cash flow diagram below. year 1 4 cash flow, $ -80000 9000 70000 30000
Year Cash Inflow1 14,0002 19,0003 31,0004 05 06 07 130,000 what is the future value of this cash flow at 3%, 11%, and 18% interest rates at the end of year 7
In the following cash flows diagram, Determine the Future Worth at the end of year 12 if the interest rate is 6% ? $200 $200 $150 $150 $100 $100 1 2 3 4 5 Years a. $1.445.8 Ob. $1364 Oc $1.532.6 Od. $1.286.8
Given data: Sales $2,000.000 OpCap $1,120,000 Wacc 9% OP = Nopat/sales 4.5% CR = OpCap/sales 56% Year Rate growth (%) Sales Nopat OpCap Free Cash Flow (FCF) Free Cash Flow - Growth ROIC 0 - $2,000.000 $90.000 $1,120.000 - - - 1 0.10 $2,200.00 $99.000 $1,232.00 $(13.000) - 8.04% 2 0.08 $2,376.00 $106.92 $1,330.56 $8.360 -164.31% 8.04% 3 0.05 $2,494.80 $112.266 $1,397.088 $45.738 447.11% 8.04% 4 0.05 $2,619.54 $117.87 $1,466.94 $48.025 5.00% 8.04% What is the value of operations at Year 0? How does the Year-0 value of operations compare with the Year-0 total net operating capital?
None
CHAPTER 10: FINANCIAL FORECASTING AND PLANNING QUESTION AND ANSWER ST-1. (Financial forecasting) Use the percent of sales method to prepare a pro forma income statement for Calico Sales Co. Inc. Projected sales for next year equal $4 million. Cost of goods sold equals 70 percent of sales, administrative expense equals $500,000, and depreciation expense is $300,000. Interest expense equals $50,000, and income is taxed at a rate of 40 percent. The firm plans to spend $200,000 during the period to renovate its office facility and will retire $150,000 in notes payable. Finally, selling expense equals 5 percent of sales.

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