The following represents the target's accounting data you have estimated for the years 2024-2025. Assume that all of these numbersare end-of-year data (i.e. today is January 1st, 2024 and the revenues, etc. are at the end of 2024, 2025).In addition, you have the following information for the target and the acquiring firm.Revenues2024$150,000,0002025$160,000,000Cost of Goods SoldDepreciationA&G$40,000,000$60,000,000$12,000,000$20,000,000$8,000,000$15,000,000$4,000,000$5,000,000Retained Earnings$6,000,000TargetAcquiring FirmInterestB-2.0Taxes=40%Cap Structure: Debt-20%# of Shares Outstanding 4,000,000Current Price per Share = $30Est. Future Growth Rate=6%$7,000,000Cap Structure: Debt-65%Taxes = 30%Other InformationT-bond rate5%Mkt Risk Premium = 10%0 (15 points) Calculate the appropriate cashflows.(10 points) Calculate the appropriate discount rate for theacquiring firm based on the value of the target.(5 points) Why is this rate so high?(15 points) Calculate the target firm value.(5 points) What would be a reasonable offer (ie. $/share)for the target.Activate WindowsI

Step 4: Determine what the acquisition is worth to the acquiring firm The acquisition worth to the…

Answered: The following represents the target's…

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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The following table tracks the main components of working capital over the life of a four-year project. 2021 2022 2023 2024 2025 Accounts receivable 0 174,000 249,000 214,000 0 Inventory 87,000 142,000 142,000 107,000 0 Accounts payable 31,000 56,000 62,000 41,000 0 Calculate net working capital and the cash inflows and outflows due to investment in working capital.
1. Net Operating Capital for 2022 2. Amount of Total Investor-Supplied (Net Current Investment and Net Fixed Asset Investment) operating capital for 2022 3. Free Cash Flow for 2022 Net Operating Working Capital for 2022 4. Net Operating Profit After Taxes for 2022
The following information pertains to Yoyo Projects for the three months ended 31 May 2020:ActualBudgetedMarchRAprilRMayRRevenue (20% for cash and 80% on credit)360 000380 000400 000Purchases (10% for cash 90% on credit)240 000280 000320 000Salaries and wages paid40 00060 00060 000Cash expenses24 00028 00032 000Depreciation2 0002 0002 000Additional Information:a) It is expected that debtors will settle their accounts as follows:• 20 % in the month of invoice• 70% in the month after the month of invoice, and• 5% in the second month after the month of invoice• The remaining 5% is usually written off as bad debts.b) Trade creditors are paid in the month after purchase at a discount of 5%.c) 50% of the salaries and wages are weekly wages. Since wages are paid weekly, usually 10% of the wages are paid in the month following the month in which they were incurred.d) Expenses are paid as they arise.e) The favourable bank balance on 1 April 2020 was R 21 000.RequiredPrepare the Cash Budget of…
Executive Summary of findings-assessment of which firm would be the better investment based on the above comparison. If answered within 45mins,it would be helpful!!!
Here are the abbreviated financial statements for Planners Peanuts: Income Statenent, 2019 $3,980 1,540 Salea Costa Net income $2,440 Balance Sheet, Tear-End 2018 2019 2019 2018 $ 950 $1,180 Equity 2,280 2,020 $3,230 $3,200 Assets $3,230 $3,200 Debt Total $3,230 $3,200 Total If sales increase by 22% in 2020, and the company uses a strict percentage-of-sales planning model (meaning that all items on the Income and balance sheet also increase by 22%), what must be the balancing item? The balancing iten is (Cick to select) What will be Its value? (Do not round intermediate calculations. Round your answer to 1 decimal place.) Value of the balancing item
Smile JungkookCompany reported the following balances at the end of each year: 2020 2019 InventoryP2,600,000 P2,900,000 , Accounts Payable 750,000 500,000 The entity paid suppliers P4,900,000 during the year ended December 31, 2020.What should be the amount to be reported for cost of goods sold in 2020?
QUESTION (b) Calculate the working capital cycle for both years. Year ended 31st December 2019 2018 Inventory - raw materials 108/751 х 365 53 days 145/971 х 365 55 days Inventory - work in progress 75/751 x 365 37 days 90/971 x 365 34 days Inventory - finished goods 86/751 x 365 42 days 125/971 x 365 47 days Receivables 171.2/868 x 365 72 days 255/999 х 365 93 days Payables 85/511 x 365 (61 days) 102.3/700 x 365 (53 days) Total working capital cycle 143 days 176 days
Hi there, from that income statement I am stuck on the following calculations: your help would be greatly appreciated thank you 2019 2020 Asset Turnover: Sales revenue \ total assets (current assets + fixed assets) Non-current asset turnover: Sales \ non-current assets (FA) 440\405=1.09 330\361=0.91 Current ratio: Current assets\ current liabilities Quick ratio: (current asset- inventories) \ current liabilities Inventory days: Average inventory\cost of sales x 365 Receivable days: Average receivables\credit sales x 365 Payable days: Average payables\credit purchases x 365 Interest cover: Operating profit\interest payable
Calculate the amount and percentage of change in working capital in 2025.
D- Please solve all sub-part questions with all steps. Thanks

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