Target entered fiscal 2019 with a total capitalization of 21898 million. In 2019, debt investors received interest income of $875 million. Net income to shareholders was 8,648 million (assume a taxe rate of 21%) calculate the economic value added assuming its cost of capital is 10%
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- LONG-TERM FINANCING NEEDED At year-end 2019, total assets for Arrington Inc. were 1.8 million and accounts payable were 450,000. Sales, which in 2019 were 3.0 million, are expected to increase by 25% in 2020. Total assets and accounts payable are proportional to sales, and that relationship will be maintained; that is, they will grow at the same rate as sales. Arrington typically uses no current liabilities other than accounts payable. Common stock amounted to 500,000 in 2019, and retained earnings were 475,000. Arrington plans to sell new common stock in the amount of 130,000. The firms profit margin on sates is 5%; 35% of earnings will be retained. a. What were Arringtons total liabilities in 2019? b. How much new long-term debt financing will be needed in 2020? (Hint: AFN - New stock = New long-term debt.)Target entered fiscal 2019 with a total capitalization of $21,928 million. In 2019, debt investors received interest income of $885 million. Net income to shareholders was $8,678 million. (Assume a tax rate of 21%.) Calculate the economic value added assuming its cost of capital is 10%.Home depot entered fiscal 2017 with a total capitalization of $21,940 million. In 2017 debt investors received interest income of $889 million. Net income to shareholders was $8690 million (assume a tax rate of 21%) calculate the economic value added assuming its cost of capital is 10%
- Home Depot entered fiscal 2017 with a total capitalization of $21,907 million. In 2017, debt investors received an interest income of $878 million. Net income to shareholders was $8,657 million. (Assume a tax rate of 21%.) Calculate the economic value-added assuming its cost of capital is 10%The 2019 financial statements for Growth Industries are presented below. Sales Costs EBIT Interest expense Taxable income Taxes (at 21%) Net income Dividends Addition to retained earnings Current assets Cash INCOME STATEMENT, 2019 Assets Accounts receivable Inventories Total current assets Net plant and equipment Total assets External financing $ 18,960 $ 44,240 $ 6,000 11,000 BALANCE SHEET, YEAR-END, 2019 Current liabilities Accounts payable Total current liabilities Long-term debt 33,000 $ 50,000 240,000 $ 300,000 200,000 $ 100,000 20,000 $ 290,000 $ 80,000 16,800 $ 63,200 Liabilities Stockholders' equity Common stock plus additional paid-in capital Retained earnings Total liabilities plus stockholders' equity What is the required external financing over the next year? Note: Enter excess cash as a negative number with a minus sign. $ 13,000 $ 13,000 200,000 Sales and costs are projected to grow at 30% a year for at least the next 4 years. Both current assets and accounts payable are…On its 2020 Balance Sheet, Liddle Inc. reported Currents Assets of $215,000, Net Fixed Assets of $1,300,000, Long-Term Debt of $780,000, and Total Equity of $600,000. On the 2021 Balance Sheet, Net Fixed Assets are $1,150,000 and Net Working Capital is $240,000. On the 2021 Income statement, the firm reported Sales of $2,550,000, Earnings Before Interest and Taxes of $1,435,000 and Depreciation of $225,000. In 2021, the firms Cash Flow from Assets was $1,209,250. What were the firm’s Taxes in 2021? Present the answer rounded to the nearest dollar
- Rhodes Corporation’s financial statements are shown after part f. Suppose the federalplus- state tax corporate tax is 25%. Answer the following questions.a. What is the net operating profit after taxes (NOPAT) for 2020?b. What are the amounts of net operating working capital for both years?c. What are the amounts of total net operating capital for both years?d. What is the free cash flow for 2020?e. What is the ROIC for 2020?f. How much of the FCF did Rhodes use for each of the following purposes: after-tax interest, net debt repayments, dividends, net stock repurchases, and net purchases of short-term investments? (Hint: Remember that a net use can be negative.)Yearend working capital in 2018 was $150 million and the firm’s marginal tax rate is 40% in 2019. What is the Free Cash Flow to the Firm in 2019 in $ million?For 2020, Electro Tech Inc. has reported earnings before interest and taxes (ebit) of $6.5 million; capital expenditures of $1.2 million; and depreciation of $0.7 million. Net working capital for 2020 is $1.0 million and for 2019 is $0.7 million. The tax rate for Electro Tech is 35%. Calculate Electro Tech's free cash flow. 18.
- Home Depot entered fiscal 2017 with a total capitalization of $21,904 million. In 2017, debt investors received interest income of $877 million. Net income to shareholders was $8,654 million. (Assume a tax rate of 21%.) Calculate the economic value added assuming its cost of capital is 10%. (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.)Click to see additional instructions In 2020, ABC corporation had sales revenue of $313,500, operating costs of $275,750, and year-end assets of $205,000. The debt-to-total-assets ratio was 25%, the interest rate on the debt was 7.5%, and the firm's tax rate was 35%. In 2021, the firm aims to use additional debt financing and increase the debt-to-total-assets ratio to 50%. Assuming that sales and total assets will not be affected, and that the interest and tax rate will both remain constant, by how much value will the ROE change in response to change in the capital structure? (Round to TWO decimals for only ROE and change in ROE, the last two rows; for the remaining values, roundup.) 2020 2021 Total Debt $4 2$ Interest Expense S Total Equity Net Income 06 Return on Equity Change in ROECoronado Incorporated had average total assets in 2025 of $6345000. It reported sales for of $8217000 that year. Average liabilities for the year were $5199000. Net income for the year was $958095. What is Coronado' return on assets for 2025? O 15.10 % O 18.43% O 6.52% O 11.66%