Q28 If the company’s Earnings before interest and taxes (EBIT) are OMR 60,000, its cost of equity is 8% and overall cost of capital is 12%, what is the total value of the firm under Net Operating Income Approach? a. OMR 500,000 b. OMR 750,000 c. OMR 900,000 d. OMR 600,000

Q: If for the most recent year, a firm's RNOA is 17.5%, its sales were $2,000,000, its asset turnover…

A: Return on operating assets is the return earned over operating assets.

Q: A company has the following target capital structure and costs:     Capital structure  Cost of…

A: Post tax cost of debt = 10% x ( 1 - 0.3 )                                        = 7%

Q: Banco Industries expect sales to grow at a rapid rate over the next three years, but settle to an…

A: The present value of the free cash flows will give us the enterprise value.   We can find the stock…

Q: Calculate the Altman Z-score of a firm who has the following financials: • Working capital = $1,000…

A: In this question, we are required to determine the Altman Z-Score.

Q: 6. If EBIT equals $200,000 and interest expenses equals $30,000 and Tax rate is 50%. What is the net…

A: EBIT = $200,000 Interest expenses = $30,000 Tax rate = 50%

Q: Based on the cost and revenue structure on the income statement, what was NUBD's break- even point…

A: The question is based on the concept of Financial Management.

Q: Sales $1,561,836 Operating Income $87,385 Total Assets (investment) $517,201 Target Rate of Return…

A: Please see the next step for the solution

Q: X Co. has the following information: Sale $ 1,200,000 Cost of sales $800,000 Operating expenses…

A: Return on capital employed can be defined as the earnings from the capital contributed in the…

Q: Current Asset                                                120 000 Cash…

A: Current Ratio = Current Assets / Current Liabilities Quick Ratio = (Current Assets -Inventory)…

Q: Profit margin Capital intensity ratio Debt-equity ratio Net income Dividends 9.6% .57 .72 $107,000 =…

A: The SGR is an important measure of a company's financial health because it indicates the maximum…

Q: Net income Shareholders' Equity Dividends Sales Revenue 5,000,000 30,000,000 3,000,000 100,000,000…

A: Sustainable growth rate is the growth rate which can be obtained without external funding required.

Q: Assume that Firm A is an all-equity firm with total assets of $5,000 and the following distribution…

A: Standard deviation is 2.800%

Q: A frim has net working capital of $509, net fixed assets of $2,336, sales of $7,000 and current…

A: Sales: It refers to all the activities involved in selling a product or service to a consumer or…

Q: Which of the following statements is the most reasonable conclusion from the given information below…

A: Ratios are the financial measure which are used to measure the growth and performance of the company…

Q: f the company’s cost of equity is 45%, Interest on Debt is OMR 10,000, market value of equity is OMR…

A: Net Operating Income approach: Under the Net Operating income approach , any change in the debt of…

Q: On the basis of this information, NUBD's weighted-average cost of capital is: (round-off to 2…

A: Given: Interest rate = 8% Cost of equity =12% Tax = 30% Market value of equity =P80 Million Market…

Q: Find the return on equity of a business having a return on sale of 15% with an asset turnover of 1.5…

A: Return on equity can be calculated by dividing net income by equity Return on equity(ROE) =Net…

Q: Suppose Alcatel-Lucent has an equity cost of capital of 10.5%, market capitalization of $9.36…

A: Free cash flow is the amount of cash available for operating business activities after all the…

Q: Assume that Firm A is an all-equity firm with total assets of $5,000 and the following distribution…

A: Standard deviation is 2.800%

Q: Profit margin Capital intensity ratio Debt-equity ratio Net income Dividends II II = 8.6% 0.47 0.62…

A: Sustainable growth rate refers to that maximum possible growth rate at which a company can grow…

Q: The target company has sales of $2 million, net income of $1 million, and cash flows to equity of…

A: We need to use P/E multiple valuation formula below for calculation of valuation P/E multiple…

Q: Sales 8.250.000.00 Operating costs 4,725.000.00 Operating income 3,525,000.00 Interest expense…

A: Formula: Economic value added (EVA) = Net operating profit after tax - Total invested capital x WACC…

Q: Sonova corporation has an operating income of $240000 and a 40% tax rate The firm has short term…

A: The operating profit (EBIT) is $240,000.The tax rate is 40%.The short term is $115,000 and long-term…

Q: 16 A firm has net income of $21,350, depreciation of $2,780, interest of $640, and taxes of $10,990.…

A: Earnings before interest, taxes, depreciation, and amortization (EBITDA) will be net income plus…

Q: Calculate gross margin (%) Calculate operating margin (EBIT = Operating Profit) (%) a- Calculate…

A: The question is based on the concept of Financial Ratios. The gross profit margin ratio is…

Q: Choose the correct letter of answer and provide a solution A firm has profit before tax of P63…

A: Interest coverage ratio is a financial ratio which  determines how well a company can pay the…

Q: Refer to the following financial information of Scholz Company:   NOPAT…

A: Economic value added (EVA) = Net operating profit after tax - Total invested capital x WACC  where,…

Q: A=10% E=11.2% rrent ratio =1.5 ick ratio=0.9 ss profit margin=24% es=1650000 ning available for…

A: Debt ratio is the ratio calculate on total assets. It repersent the portion of assets financed from…

Q: Hi expart give correct answer

A: Conclusion:The calculated operating cash flow is $800.So, the correct answer is: D. $800.

Q: The Time Teller Ltd has a net profit margin of 10,5%, total asset turnover of 1,75 and return on…

A: Dupont equation is very important in calculating the return on equity and it shows how the return on…

Q: Cecil, Inc. has sales of $682,100. Earnings before interest and taxes is equal to 20 percent of…

A: Profit Margin = Net Profit /Sales

Q: Assume that the net profit margin = 9%, assets are 95 cents for every dollar of sales, and equity is…

A: ROE (DuPont Model) = Net Profit Margin x Asset Turnover x Equity Multiplier   Where, Net Profit…

Q: If Alphas, Inc., has a net income of $25 million, total assets of $200 million and total debt of $75…

A: Return on equity (ROE) is a measure of financial performance calculated by dividing net income by…

Q: Your investment over one year yielded a capital gains yield of 7% and no dividend yield. If the sale…

A: Sale Price of investment=$118Yield rate=7%Dividend=0required:Cost of investment=?

Q: the specifics for a company are as follows: tax rate 35% Equity = 6,300,000…

A: A company may raise funds from multiple sources like common and preferred stock, debt, bonds, etc. A…

Q: current assets is estimated at £45m. Recent profit after tax is £37m and a sector P/E ratio is 12

A: P/E ration = Market price per share / Earning per share 12 = Market Price per share /Earning per…

Q: - If the net profit of a business is 1.200.000 TL and its total assets are 4.000.000 TL, what is the…

A: The profitability ratio indicates the profit earning ability of the firm by using the total assets.…

Q: Assume the following data for U&P Company: Debt (D) = $100 million; Equity (E): 6%; re 12%; and Tc=…

A: WACC stands for Weighted Average Cost of Capital. It is a financial metric that represents the…

Q: total sales of $340,000. And a net income after tax of $47,600. Calculate the operating margin if…

A: To calculate the operating margin we need to calculate the operating income.Operating Income is an…