1. How many units would ABC company need to sell to earn a profit after taxes of P15, 000? The following information relates to financial projections of ABC's company:Projected sales60,000 unitsProjected variable costs2.00 per unitProjected fixed costs50,000 per yearProjected unit sales price7.00Tax rate25%

Profit before taxes = Profit after taxes/(1 - Tax rate) Profit after taxes P15,000 Tax rate 25%…

Answered: sell to earn a profit after taxes

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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1
Teal Company has a DOL of 120%. If sales were to increase by 5%, what is the expected impact on Earnings Before Interest and Tax (EBIT)?
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 million
What is the effective tax rate that a company will end up paying if their year income is $16.7 million? The tax needs to be calculated based on the table shown below: From Below Tax + Marginal additional tax $0 $50,000 15% $50,000 $75,000 $7,500 + 25% over $50,000 $75,000 $100,000 $13,750 + 34% over $75,000 $100,000 $335,000 $22,250 + 39% over $100,000 $335,000 $10,000,000 $113,900 + 34% over $335,000 $10,000,000 $15,000,000 $3,400,000 + 35% over $10,000,000 $15,000,000 $18,333,333 $5,150,000 + 38% over $15,000,000 Group of answer choices 27.4483% 34.1007% 34.0000% 34.7066%
A4
Du Pont Analysis Keller's Cosmetics manitains an operating profit margin of 5% and an asset turnover ratio of 3. a. What is the ROA? b. If its debt-equity ratio is 1, its interst payment and taxes are each $8,000, and the EBIT is $20,000, what is the ROE?
PT. Sentosa Raya uses its own capital and debt capital. The agreed cost of debt is 10% and the interest to be paid on the debt is Rp. 3,000,000. The company earned an operating profit of Rp. 24,000,000 per year. The expected return is 30% per year. With these data, determine the value of the company and the company's cost of capital!
44) Vapor Lock Motors’ EBIT is $7,000,000, the company’s interest expense is $2,000,000, and its tax rate is 40 percent. Vapor Lock’s beta is 1.5 a. What is Vapor Lock’s DFL? b. If Vapor Lock were able to grow its EBIT by 50%, what would be the percentage increase in net income? c. If Vapor Lock were able to grow its EBIT by 50%, what would be the resulting net income?
5. Eagle Products' EBIT is $680, its tax rate is 30%, depreciation is $42, capital expenditures are $82, and the planned increase in net working capital is $48. What is the free cash flow to the firm?
Your firm has total sales of $1,700. Operating Costs are $745, excluding depreciation and taxes, and operating- related depreciation is $155. The tax rate is 20%. What is the operating cash flow? A. $460. B. $600. C. $640. D. $800. E. $955.
4. Binford Tools has an expected perpetual EBITDA equal to $67k. Its tax rate is 35%. Binford has $139k in debt at a cost of 6.85%. The unlevered capital cost is 10.25%. What is Binford's total value assuming interest is tax deductible?
son.2

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