Average operating assets are $400,000; the minimum rate of return is 5%; operating income is $100,000; and sales are $800,000. The margin is A) 12.5% B) 25% C) 50% D) 200% E) none of the above
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- Coolidge Cola is forecasting the following income statement: Sales 30,000,000Operating costs excluding depreciation and amortization (20,000,000)EBITDA 10,000,000Depreciation and amortization (5,000,000)Operating income (EBIT) 5,000,000Interest expense (2,000,000)Taxable income (EBT) 3,000,000Taxes (40%) (1,200,000)Net income 1,800,000 Assume that, with the exception of depreciation, all other non-cash revenues and expenses…Assume that Major Manuscripts, Inc. is currently operating at 95 percent of capacity and that sales are projected to increase to $20,000. What is the projected addition to fixed assets? O a. $1,529 O b. $0 O c. $1,493 d. $1,546Total assets are $12.0 million, with $4.0 million being long-term assets. Current liabilitiesare $2.5 million and total liabilities are $6.5 million. The current ratio would be closest to:a. 1.6.b. 1.8.c. 3.2.d. 4.8.
- Killian Corp. has a residual income of $36,000 on invested assets of $451,000. If the hurdle rate is 10%, what is the operating income?A.) 3,600B.) 45,100C.) 81,100D.) 36,000Two capital assets display the following: E(RA) = 12% σA = 1.5% E(RB) = 15% σB = 1.0% If asset A´s return is 5% below the Capital Market Line (CML), and asset B´s return is 1% below the CML, what is the equation of the CML? a) E(Ri) = 0.1203 − 0.02σi b) E(Ri) = 0.09 + 2σi c) E(Ri) = 0.1227 + 0.02σi d) E(Ri) = 0.15 − 2σi e) E(Ri) = 0.14 + 2σi22) Consider a position of 2,000,000 investment in asset X and 3,000,000 in Investment Y. Daily volatilities for both assets is 0.1% and the correlation coefficient is .30 What is the 10 day 99% VAR? (Closest to! i.e. approximately) A) $59,300 B) $5,931 C) $33,400 D) $30,200
- Credit Rop = 15,00,000/-; Cash Rop is 25% of Rop; liquid asset 2,00,000/-; Inventory1,00,000/-; Current liability 1,20,000/-; Working capital turnover ratio will beUse the following information to answer the next question. Total Asset = $40 million Basic earning power (BEP) ratio is 20% Times-interest-earned (TIE) Principal payments = 4 million ratio is 6.55 $1.35 million; $0.37 million What is the company's EBIT? The company's interest expense? $3.33 million; $0.83 million $8.0 million; $0.62 million Depreciation = $1.0 million. $7.5 million; $0.75 million Lease payments = 0.6 million $8.0 million; $1.22 millionBased on the following information, what is the company's Unlevered FCF for the period: EBIT of $500 mm, tax rate of 20%, Depreciation and Amort of $200 mm, Capex of $250 mm and an investment of $50 mm in Net Working Capital. a. $500 mm b. $300 mm c. $650 mm d. $225 mm Please answer fast i give you upvote.
- ) Assuming a 9% cost of capital, find the modified internal rate of return for the following cash flows: a. 19.78% b. 6.95% c. 13.64% d. 7.86% Year Cash Flow 0 1 2 3 -$175 $167 $240 -$120Consider the following informationYear Profit Ending book value of assets Ending book value of debt1 $100 $1 030 $7202 $120 $1 060 $7403 $60 $1 000 $800At the end of year t, the company’s book value of assets and debt are $1 000 and $700, respectively. The analyst expects that after year t+3 profit will be $0 and the book values of assets and debts will not change from the prior year. The cost of equity (WACC) is 10 per cent. Calculate the present value of free cash flows for the end of each year.AMT. Inc.'s net income for this quarter is $500,000. The publicized return on assets (ROA) is 34.5 % . Estimate the firm's total asset to the closet possible. a. $1,500,000 c. $2,450,000 b. $ 1,450,000 d. $2,005,500