Retained earningsTotal common equityTotal liabilities and equity$SalesOperating costs excluding depreciationEBITDADepreciation and amortizationEBITInterestEBTTaxes (40%)Net incomeIncome Statements:Dividends paidAddition to retained earningsShares outstandingShares outstandingPriceWACCc100$25.0010.00%1,000$2,225$3,0502018$2,7001,250$1,450100$1,35062$1,288515$773$53$600100100$22.50400$1,625$2,1252017$1,5001,000$50075$42545$380152$228$48$180100The balance in the firm's cash and equivalents account is needed for operations and is not considered "excess" cash.Using the financial statements given above, what is Rosnan's 2018 free cash flow (FCF)? Cash outflow, if any, should beindicated by a minus sign. Round your answer to the nearest dollar. Quantitative Problem: Rosnan Industries' 2018 and 2017 balance sheets and income statements are shown below.Balance Sheets:AssetsCash and equivalentsAccounts receivableInventoriesTotal current assetsNet plant and equipmentTotal assetsLiabilities and EquityAccounts payableAccrualsNotes payableTotal current liabilitiesLong-term debtTotal liabilitiesCommon stockRetained earningsTotal comment2018$100275175$7502,300$3,050$15075150$375450$8251,2251,000#7:3752017$85300250$6351,490$2,125$855075$210290$5001,22540041.61

Free cash flow is money available after making payments adding depreciation making deduction for…

Total common equity Total liabilities and equity Sales Operating costs excluding depreciation EBITDA Depreciation and amortization EBIT Interest EBT Taxes (40%) Net income Income Statements: Dividends paid Addition to retained earnings Shares outstanding $2,225 $1,625 $3,050 $2,125 2018 $2,750 1,250 $1,450 100 $1,350 62 $1,288 515 $773 $53 $600 100 2017 $1,500 1,000 $500 75 $425 45 $380 152 $228 $48 $180 100

Total common equity Total liabilities and equity Sales Operating costs excluding depreciation EBITDA Depreciation and amortization EBIT Interest EBT Taxes (40%) Net income Income Statements: Dividends paid Addition to retained earnings Shares outstanding $2,225 $1,625 $3,050 $2,125 2018 $2,750 1,250 $1,450 100 $1,350 62 $1,288 515 $773 $53 $600 100 2017 $1,500 1,000 $500 75 $425 45 $380 152 $228 $48 $180 100

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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2018 2017 Net Income (in millions) ? ? Weighted Average Shares Outstanding (in millions) Basic Number Shares ? 59.2 Diluted Number of Shares 64.8 ? Earnings Per Share Basic 1.50 1.09 Diluted 1.43 1.02
Estimating Share Value Using the DCF ModelAssume following are forecasts of Abercrombie & Fitch's sales, net operating profit after tax (NOPAT), and net operating assets (NOA) as of January 29, 2011. Reported Horizon Period (In millions) 2011 2012 2013 2014 2015 Terminal Period Sales $ 3,750 $ 4,500 $ 5,400 $ 6,480 $ 7,776 $ 7,853 NOPAT 464 539 654 794 982 960 NOA 1,320 1,602 1,933 2,332 2,791 2,802 Answer the following requirements assuming a discount rate (WACC) of 13.3%, a terminal period growth rate of 1%, common shares outstanding of 86.2 million, and net nonoperating obligations (NNO) of $(261) million (negative NNO reflects net nonoperating assets such as investments rather than net obligations).(a) Estimate the value of a share of Abercrombie & Fitch common stock using the discounted cash flow (DCF) model as of January 29, 2011. Rounding instructions: Round answers to the nearest whole number unless noted otherwise. Use your rounded answers for…
Sh8
Partial Income Statement Excel Exercise Compute the Following ՀԱՐ Sales COGS SG&A Depreciation Debt Int. Rate Tax Rate* 2019 100 40 EBITDA EBIT 25 Interest 10 EBT 0.08 Tax 0.25 Net Income ? ? ? ? ? ? Partial Balance Sheet Debt and Loans 150 Total Equity 150 Total Assets 300 Inv. Change 10 A/R Change A/P Change 35 20 Net Profit Margin Equity Multiplier Verify Dupont ROE ? סיי ? ? ? ? ? * Assume all taxes paid in current period (no accrued taxes) for rest of course CF from Operations ROE Asset Turnover CED Tt O 24
calculate: Debt ratio Interest coverage ratio Dividend yield current asset- 1.170.7 million inventory- 859.9 million currant liability- 885.8 million total dedt- 1.598.8 million total assets- 2.452.3 million operating profit- 1.230.5 million interest expense- 10,700 thousand
Accounts Payable Notes Payable Long Term Debt Common Stock Retained Earnings Total Liabilities & Equity $ 275,000 $ 315,000 $ 495,000 $ 925,000 $2,450,000 $4,460,000 Pre-Tax Cost of Debt: Intermediate Debt: 4.5% Long Term Debt: 6.5% Tax Rate: 21% Return on Equity: 11% Dividends per share: $0.20 Earnings per share: $0.90 C/S market price: $55 C/S outstanding: 80000 shares This company uses intermediate debt, long-term debt and common equity to finance its operations. With the information presented above: a. Calculate the firm's debt ratio (book value and market value based) b. Calculate the firm's WACC c. Calculate the new firm's WACC if the firm issued 150,000 new common stock at a flotation cost of $1.20 per share. The new issuance generates $4.5 million.
Debt Management Ratios Trina's Trikes, Inc. reported a debt-to-equity ratio of 1.94 times at the end of 2018. If the firm's total debt at year-end was $10.60 million, how much equity does Trina's Trikes have? Multiple Choice $5.46 million $20.56 million $10.60 million $1.94 million
Consolidated Statements of Changes in Shareholders' Equity ($ in thousands) Share Capital Contributed Surplus Retained Earnings AOCI(1) Total Balance at January 31, 2015 $ 167,460 $ 2,831 $ 140,527 $ 18,465 $ 329,283 Net earnings for the year — – 69,779 – 69,779 Other comprehensive income (Note 12) – – 4,583 11,953 16,536 Other comprehensive income of equity investee – – (15) – (15) Comprehensive income – – 74,347 11,953 86,300 Equity settled share-based payments – 124 – – 124 Dividends (Note 19) – – (58,210) – (58,210) Issuance of common shares (Note 15) 450 (335) – – 115 450 (211) (58,210) – (57,971) Balance at January 31, 2016 $167,910 $ 2,620 $156,664 $ 30,418 $357,612 Balance at January 31, 2014 $ 166,069 $ 3,528 $ 145,762 $ 7,081 $ 322,440 Net earnings for the year — – 62,883 – 62,883 Other comprehensive income (Note 12) – – (11,968) 11,384 (584) Other comprehensive income of equity investee – – 30 – 30 Comprehensive income – – 50,945 11,384…
vas.msst Net sales Operating costs except depreciation Depreciation Earnings before interest and taxes (EBIT) Less interest Earnings before taxes (EBT) Taxes Net income Other data: Shares outstanding (millions) Common dividends (millions of $) Int rate on notes payable & L-T bonds Federal plus state income tax rate Year-end stock price $98,000 91.140 1,960 $4,900 960 $3,940 1,576 $2,364 500.00 $827.40 6% 40% $56.74 Refer to Exhibit 4.1. What is the firm's ROA? Do not round your intermediate calculations,
rehensive Problem 2- St of Cash Flows and Ratios Algo C. Klein Inc. C. Klein Inc. Income Statement Comparative Balance Sheets December 31, 2018 and 2017 For years ended December 31, 2017 and 2018 2018 2017 Change 2018 2017 $469,000 $422,000 (303,000) (248,000) 166,000 174,000 Current assets: Sales (all on credit) Cost of goods sold Gross margin Cash $52.260 34,000 $37,900 $14,360 Accounts receivable (net) 28,000 6,000 Inventory Prepaid expenses 44,000 42,000 2100 2,000 -1,200 900 Depreciation expense Other operating 5631 36,000 51,000 Other current assets 1310 2000 -690 102,000 85,000 Totol current assets 132,470 112,000 20,470 expenses Total operating 138,000 136,000 expenses ok Operating income 28.000 38,000 Long-term Investments 75,000 52,000 23,000 Other income (expenses) Plant assets 302,000 253,000 49,000 nces Interest expense (4,700) (3,500) Less: accumulated (76,800) (51,000) 25,800 depreciation Gain on sale of 4,900 3,400 Total plant assets 225,200 202,000 23,200 investments…
The 2017 financial statements for Armstrong and Blair companies are summarized below: Blair Armstrong Company Company Statement of Financial Position $35,000 40,000 100,000 140,000 85,000 $ 22,000 30,000 40,000 400,000 308,000 Cash Accounts receivable (net) Inventory Property, plant, and equipment (net) Other non-current assets Total assets $ 400,000 $ 800,000 $ 100,000 60,000 150,000 30,000 60,000 $ 50,000 70,000 500,000 110,000 70,000 Current liabilities Long-term debt (10%) Share capital Contributed surplus Retained earnings Total liabilities and shareholders' equity $ 400,000 $ 800,000 Statement of Earnings Sales revenue (1/3 on credit) Cost of sales $ 450,000 (245,000) (160,000) $ 810,000 (405,000) (315,000) Expenses (including interest and income tax) Net earnings $ 45,000 $ 90,000 Selected data from the 2016 statements follows: Prev 1 of 2
You have been provided with the following extracts of the financial statements of Provision Ltd for the year ended 31 December 2018. Statement of financial position for the year ended 31 December 2018 Non-current assets Current assets Inventories Trade receivables Cash Total assets Equity and Liabilities Shareholders equity and reserves Contributed equity (ordinary shares) Retained income Preference shares - Non-current liabilities Loan Current liabilities Trade payables Dividends payable Inland Revenue Total equity and liabilities Note 1 S S SSS S $ SSS S SSS S S S 2018 328,000 S 498,000 S 170,000 S 90,000 $ 62,000 $ 55,000 18,000 $ 5,000 $ 2017 80,000 $ 48,000 $ 12,000 $ 20,000 $ 286,000 170,000 110,000 418,000 $ 290,000 170,000 $ 198,000 $ 50,000 $ S S 456,000 110,000 130,000 50,000 100,000 66,000 44,000 10,000 12,000 498,000 S 456,000 Extract from the statement of profit and loss for the year ended 31 December 2018: Gross revenue S 375,000 Cost of sales $ 217,000 S 158,000 Net…

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