5:19You are considering an investment in Fields and Struthers, Inc., and want to evaluate the firm's free cash flow. From thstatement, you see that Fields and Struthers earned an EBIT of $84 million, had a tax rate of 21 percent, and its deprewas $10 million. Fields and Struthers's NOPAT gross fixed assets increased by $50 million from 2020 and 2021. The fassets increased by $38 million and spontaneous current liabilities increased by $25 million.Calculate Fields and Struthers's NOPAT operating cash flow for 2021. (Enter your answer in millions of dollars roundplaces.)Answer is complete but not entirely correct.$ 11.60 millionOperating cash flowCalculate Fields and Struthers's NOPAT investment in operating capital for 2021. (Enter your answer in millions of dollaInvestment in operating capitalmillion

Operating cash flows (OCF) is the cash flows generated from normal operations- Selling and producing…

Answered: You are considering an investment in…

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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Gomez is considering a $185,000 investment with the following net cash flows. Gomez requires a 12% return on its investments. (PV of $1, FV of $1, PVA of $1, and FVA of $1) Note: Use appropriate factor(s) from the tables provided. (a) Compute the net present value of this investment. (b) Should Gomez accept the investment? Complete this question by entering your answers in the tabs below. Compute the net present value of this investment. Note: Round your answers to the nearest whole dollar.
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?
Jigzaw Company has Sales amounting to P400,000 with expected increase of 25% next year. Net earnings after tax is P80,000, with 20% dividend payout. If the Current Asset is P250,000 and Spontaneous liability is P130,000, what is the AFN for the company?
King Messi Corp. is expected to have $20 earnings before interest and taxes every year in perpetuity and a tax rate of 20%. The firm is financed with $100 in debt and the remainder with equity. The firm’s cost of debt is 5%. Its earnings after taxes are expected to be fully paid out as dividends. Based on this information, what is the total cash flow to debt and equity holders? Answers: 16 17 18 19 20
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Blur Corp. has an expected net operating profit after taxes, EBIT(1-T), of $7,600 million in the coming year. In addition, the firm is expected to have net capital expenditures of $1,140 million, and net operating working capital (NOWC) is expected to increase by $10 million. How much free cash flow (FCF) is Blur Corp. expected to generate over the next year? O $118,668 million $6,450 million O $8,730 million O $6,470 million Blur Corp.'s FCFs are expected to grow at a constant rate of 4.62% per year in the future. The market value of Blur Corp.'s outstanding debt is $31,412 million, and its preferred stocks' value is $17,451 million. Blur Corp. has 150 million shares of common stock outstanding, and its weighted average cost of capital (WACC) equals 13.86%. Term Total firm value Intrinsic value of common equity Intrinsic value per share Value (Millions) Using the preceding information and the FCF you calculated in the previous question, calculate the appropriate values in this table.…
During 2020, Dyrdek’s Skate Shop, Inc., had a cash flow to creditors of $55,000 and the cash flow to stockholders for the year was $60,000. Suppose you also know that the firm’s net capital spending for 2020 was $1,350,000, and that the firm reduced its net working capital investment by $65,000. What was the firm’s 2020 operating cash flow, or OCF?
You are considering an investment in Fields and Struthers, Inc., and want to evaluate the firm's free cash flow. From the income statement, you see that Fields and Struthers earned an EBIT of $64 million, had a tax rate of 30 percent, and its depreciation expense was $5 million. Fields and Struthers' gross fixed assets increased by $30 million from 2014 and 2015. The firm's current assets increased by $26 million and spontaneous current liabilities increased by $15 million. a. Calculate Fields and Struthers' operating cash flow for 2015. b. Calculate Fields and Struthers' investment in operating capital for 2015. c. Calculate Fields and Struthers' free cash flow for 2015.
You are considering an investment in Fields and Struthers, Inc., and want to evaluate the firm's free cash flow. From the income statement, you see that Fields and Struthers earned an EBIT of $70 million, had a tax rate of 21 percent, and its depreciation expense was $7 million. Fields and Struthers's NOPAT gross fixed assets increased by $36 million from 2020 and 2021. The firm's current assets increased by $32 million and spontaneous current liabilities increased by $18 million. Calculate Fields and Struthers's NOPAT operating cash flow for 2021. Calculate Fields and Struthers's NOPAT investment in operating capital for 2021. Calculate Fields and Struthers's NOPAT free cash flow for 2021.
For 2022, You're Doing Great Corporation reported $22 million in sales and $19 million In operating costs Cincluding depreciation). The company has $15 million of total invested capital. Its after-tax cost of Capital is 10%, and its tax rate is 25%. What was the firm's economic value added (EVA) during 2022?
You are considering an investment in Fields and Struthers, Inc., and want to evaluate the firm's free cash flow. From the income statement, you see that Fields and Struthers earned an EBIT of $64 million, had a tax rate of 21 percent, and its depreciation expense was $5 million. Fields and Struthers's NOPAT gross fixed assets increased by $30 million from 2020 and 2021. The firm's current assets increased by $26 million and spontaneous current liabilities increased by $15 million. Calculate Fields and Struthers's NOPAT operating cash flow for 2021. (Enter your answer in millions of dollars rounded to 2 decimal places.) Operating cash flow Calculate Fields and Struthers's NOPAT investment in operating capital for 2021. (Enter your answer in millions of dollars.) Investment in operating capital million Free cash flow Check my work million million Calculate Fields and Struthers's NOPAT free cash flow for 2021. (Enter your answer in millions of dollars rounded to 2 decimal places.)
The annual report of 2019 which shows an EBITDA of P5,000,000 and a total liability of P15,550,000. Evidently, the sales grew by 12% annually with a direct effect on the growth of free cash flow of 12% yearly. Last year, the free cash flow was reported to be P3,500,000. The weighted average cost of capital is 10%. Using the financial model, how much is the value of the equity?

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