Your firm has total sales of $1,420, Costs are $780 and depreciation is $120. The tax rate is 22 percent. The firm does not have interest expenses. What is the operating cash flow?

Q: Suppose your firm receives a $4.93 million order on the last day of the year. You fill the order…

A: Debit what comes in, Credit what goes out Debit all Assets, Credit all Liabilities Debit all income…

Q: Ryan Enterprises forecasts the free cash flows (in millions) shown below. Assume the firm has zero…

A: Weighted Average Cost of Capital = r = 13%Growth rate after year 3 = g = 4%Free Cash flow for year 1…

Q: Milton Industries expects free cash flows of $4 million each year. Milton's corporate tax rate is…

A: As per MM Approch the Value of firm is calculated with the help of following formula  1.…

Q: You manufactured 1,050 bikes and sold 1,000 of them for $200 each. Labor is 90/bike, material…

A: Cost of bike=Material+labour=$60+90=$150 Total Profit=No. of BikesSelling Price-Cost of Bike-Rental…

Q: Tool Manufacturing has an expected EBIT o 69,000 in perpetuity and a tax rate of 23 percent. The…

A: Modigliani-Miller Proposition I (MM Proposition I) is a fundamental concept in corporate finance,…

Q: ", e, and book value of equity is equal to market value of in which state of the economy occurs this…

A: EPS is earning per share and that profit earned for each shareholder by the company in the current…

Q: Patterson Brothers recently reported an EBITDA of $18.5 million and net income of $5.6 million. It…

A: EBITDA stands for Earnings before interest, taxation, deparation and amortization. Net income =…

Q: Hartman Motors has $24 million in assets, which were financed with $6 million of debt and $18…

A: Formula: Beta(levered) = Beta(unlevered) * [1 + {(1 -tax rate)*(Debt /Equity)}]

Q: Executives at XYZ Corporation realize that they have too much liquid assets. They want to use this…

A: Calculation of Expected Rate of Return:The expected rate of return of Company A is 11.80% and…

Q: Digby Corp. ended last year with a surplus of cash and a leverage of 2.9. If Digby Corp. had used…

A: To decide the leverage of Digby Corp. After the usage of all its cash to pay off liabilities, we…

Q: Patterson Brothers recently reported an EBITDA of $16.5 million and net income of $5.775 million. It…

A: Earning Before Interest, Taxes Depreciation and Amortization = EBITDA = $16.5 millionNet Income = ni…

Q: Marpor Industries has no debt and expects to generate free cash flows of $16.82 million each year.…

A: b. Estimate​ Marpor's value with the new leverage.Value of firm with debt = (15,320,000/0.126 ) +…

Q: Docile Partners Limited (DPL) has two lines of business, organized as two divisions, A and B.…

A: A firm comprises of two divisions with separate identifiable cash flows and risk profile. We have to…

Q: Gagah Motors Enterprise., a producer of turbine generators, is in this situation: EBIT = RM4…

A: Capital structure refers to the composition of various sources of capital for raising funds to…

Q: a.    What is the current value of the company? (Do not round intermediate calculations and round…

A: Value of Firm: It is the value of creditors' and shareholders' claims altogether.    NOTE: As per…

Q: Aaish-o-Ishrat Technology is considering changes in the working capital policies to improve its cash…

A: Given data sales = 3,250,000net profit margin = 7%sales outstanding = 41 daysinventory turn over = 6…

Q: Gagah Motors Enterprise., a producer of turbine generators, is in this situation: EBIT = RM4…

A: In the given question we require to compute Gagah’s earning per share (EPS) , Price per share and…

Q: Hartman Motors has $8 million in assets, which were financed with $4 million of debt and $4 million…

A: Unlevered beta is the beta for a company with zero debt I its capital structure. In that case, the…

Q: Hartman Motors has $16 million in assets, which were financed with $4 million of debt and $12…

A: Unlevered beta =Levered beta /[1+(1-tax rate)*(D/E)].D= DEBTE=EQUITY.

Q: your firm has overpaid a vehicle with as unit ncost of 19,000.  in ventory invreased by 50,000 units…

A: Financial statements includes income statement, statement of cash flow, statement of financial…

Q: A firm has a cost of debt of 6.2 percent and a cost of equity of 13.3 percent. The debt–equity ratio…

A: Cost of debt = 6.2% Cost of equity = 13.3% Debt-equity ratio = 0.96 Debt-asset ratio = Debt equity…

Q: that produces batik and other traditional clothing. The company's financial data is as follows.…

A: When a corporation raises funds by issuing debt instruments to investors, this is referred to as…

Q: Suppose Goodyear Tire and Rubber Company has an equity cost of capital of 7.6%, a debt cost of…

A: The Weighted Average Cost of Capital (WACC), sometimes referred to as the Composite Cost of Capital…

Q: Ohio Steel has a degree of operating leverage of 2.9. The company predicted EBIT of $332,000 and EPS…

A: Degree of Financial Leverage (DFL)The Degree of Financial Leverage (DFL) measures how sensitive a…

Q: Patterson Brothers recently reported an EBITDA of $12.5 million and net income of $3.75 million. It…

A: Depreciation:Depreciation and amortization are critical accounting methods for methodically…

Financial Ratios

A Ratio refers to a figure calculated as a reference to the relationship of two or more numbers and can be expressed as a fraction, proportion, percentage, or the number of times. When the number is determined by taking two accounting numbers derived from the financial statements, it is termed as the accounting ratio.

Return on Equity

The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.