Fordson has the following financial information for FY 2023 (in thousands): Operating revenue Salary expense Depreciation expense All other operating expenses Tax expense (20% tax rate) Net Income Expected working capital increase of Capital expenditure What is free cash flow? O420 720 O 820 O 1120 O Cannot be calculated 4000 1000 400 1200 280 1120 300 400
Q: Compute the payback period and ROI (Return on Investment) for the following Initial investment -…
A: The payback period is the non-discounting method for evaluating investment proposals. It helps to…
Q: 3. Scott deposits 80 today into an account that credits a nominal interest rate of 6% compounded…
A: Data given: Scott: PV=80 Rate=6% (compounded quarterly) =6%/4=1.5% N=18 years nper=18*4=72…
Q: How did you find $54 000 in cell E3
A: The constant dollar values means inflation is adjusted, but in actual dollar values, inflation…
Q: Weaver Brothers expects to earn $3.50 per share (E₁), and has an expected dividend payout ratio of…
A: Solution: Cost of equity means the minimum rate of return required by the equity shareholders of the…
Q: explain the structure of a pay-fixed, receive-fixed currency swap, and describe the cash flows at…
A: It seems like there may be a typo in your question. A pay-fixed, receive-fixed currency swap would…
Q: @A=Pe ¹α A- P(1+-)" . - Use the model A for years. where is the future value of P dollars invested…
A: Present value = p = $100,000 Future value = a = $1,000,000 Interest rate = r = 6% Time = t = ?
Q: What are the annual payments for a 4-year $4,000 loan if the interest rate is 9% per year? Make up a…
A: Present value of annuity formula. PV = A * 1-(1+r)-nr where , PV = Present value of annuity A =…
Q: The WACC is used as the discount rate to evaluate various capital budgeting projects. However, it is…
A: The WACC ( weighted average cost of capital ) is the sum product of the weights in the capital…
Q: Kyle invests in an account earning 5.5% interest compounded continuously. How long will it take to…
A: Continuous compounding means compounding is done forever. In other words compounding frequency…
Q: Titusville Petroleum Company is considering pledging its receivables to finance an increase in…
A: Given that : Total receivables = 2 million PercentReceivables lent = 90%
Q: Bartlett Car Wash Company is considering the purchase of a new facility. It would allow Bartlett to…
A: Accounting rate of return (ARR) can be calculated as - ARR = Average annual profit Initial…
Q: In the context of coupon-paying bonds, which of the following are most likely determined by market…
A: Coupon bond are type of bond issued with a fixed paid coupon payment at annual interest rate. Coupon…
Q: Carla Vista Enterprises issued 8%, 8-year, $2,950,000 par value bonds that pay interest annually on…
A: The bond refers to the instrument used by companies to raise debt capital from investors. The main…
Q: A couple will retire in 50 years; they plan to spend about $30,000 a year in retirement, which…
A: First present value annuity of $30,000 for 25 years is determined @ 8%. Then using this value as the…
Q: explain how to price a currency swap if either set of payments is at a floating rate.…
A: “Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…
Q: Consider a put option on a stock that currently sells for £100, but may rise to £120 or fall to £80…
A: A derivative contract known as an option grants the individual who holds it the right, but not the…
Q: A stock with a dividend of $0 must have a value that is less than a stock with a dividend of $2.…
A: The dividends refer to the bonus return that the company provides to its shareholders. It is used as…
Q: Suppose the current price of gold is $1,300 an ounce. Hotshot Consultants advises you that gold…
A: Present value (PV) is the value today of a future payment, or a series of future payments,…
Q: A company has 6.11 million common shares outstanding and $71 million of debt with an interest rate…
A: Number of existing share = 6.11 million Value of existing debt = $71 million Interest rate = 5.2%…
Q: Landman Corporation (LC) manufactures time series photographic equipment. It is currently at its…
A: Perpetual cash flow is one that remains forever. With perpetual cash flow and cost of capital or…
Q: A consumer buys a used car $15500 with monthly payments of $340, an annual interest rate of 4.6%.…
A: The concept of time value of money will be used and applied here. When we take a loan or a mortgage…
Q: Karamo's Shoe Stores Incorporated is considering opening an additional suburban outlet. An aftertax…
A: Coefficient of variation shows the relative measurement of the standard deviation with its mean…
Q: Johnson Controls has a project with a cost of $7,000 and expected cash flow stream of $2,000 at the…
A: Net present value (NPV) is a financial metric that calculates the present value of expected cash…
Q: Austin invested $13,000 in an account paying an interest rate of 63% compounded monthly. Easton…
A: The idea of the time value of money (TVM) holds that a quantity of income is valuable greater at the…
Q: Software and hardware for optimizing the cell design of robotic picking lines have an installed cost…
A: Installed cost = i = $78,000 Useful life = n = 6 years Using DDB method the depreciation rate:…
Q: Ariana, Incorporated, is considering a project that will result in initial aftertax cash savings of…
A: The cost of capital refers to the return that the company provides to all its stakeholders for their…
Q: Consider the following information: State of Economy Probability of State of Economy Boom Bust .72…
A: A portfolio that has been perfectly balanced between risk and return is said to be optimum. The best…
Q: You sell a put option on ABC stock for $2.25 with a strike price of $50. Today, ABC is trading at…
A: Selling a put option means selling the right to sell the underlying asset in the near future at the…
Q: Suppose that put options on a stock with strike prices $30 and $35 cost $4 and $7, respectively.…
A: The bull spread would use a strike price of $35 and cost C1 $7 by writing put option and buy put…
Q: Newport Corporation is considering the purchase of a new piece of equipment. The cost savings from…
A: Initial cost (C) = $900000 Annual increase in cashflow (A) = $200000 n = 6 years Let r = Accounting…
Q: A stock just paid a dividend of $3.2 and the dividend is expected to grow at a constant rate of 4.3%…
A: Dividend - This is the amount which is paid by the company to its shareholders. Dividend includes…
Q: Consider company ABC. Today it is 1st of January 2023 and ABC has just paid a dividend of £3…
A: As per the given information: Old Dividend Payout Ratio is 50% The new Dividend Payout Ratio after…
Q: Although, Convexity is listed as a 'risk' to bond investors, it is actually a benefit to investors…
A: The convexity is measured rof sensitivity of bond price to change in the interest rate so it is…
Q: QUESTION 5 Software and hardware for optimizing the cell design of robotic picking lines have an…
A: Investment cost = $78,000 Useful life = 5 years Depreciation method = Double Declining Balance
Q: A car dealer offers a $1500 rebate if you pay cash (or borrow the money elsewhere) for a $9500 car…
A: The financed car loan requires a 10% down payment, which is: $9500 x 10% = $950 So, the amount…
Q: Leonard owns a coffee shop. One of his coffee machines is in bad shape. He plans to overhaul the…
A: NPV is a Capital Budgeting technique in which profitability is determined by using discounted cash…
Q: A rotational molding operation has fixed costs of $10,000 per year and variable costs of $52 per…
A: Rotational molding process: Fixed costs = $10,000 Variable costs per unit = $52 Automation process:…
Q: The asking price (initial investment) for a project is $290,000. The end of year after tax cash…
A: Initial Investment = $290,000 Cash flow for year 1 = $80,000 Cash flow for year 2 = $80,000 Cash…
Q: Discuss the importance of asset allocation
A: The Asset allocation is conserved allocation of total fund of investment in different kind of assets…
Q: Guyton and Jessica have a new grandson. How much money should they invest now so that he will have…
A: Data given: FV=$79,000 N=18 years Rate=4.1% compounded quarterly Required: Amount to be invested…
Q: Which of the following actions is a reason for privatizing government services? Select all that…
A: Introduction: Privatizing government services-Privatization is a transition process through which…
Q: Your friend is trying to decide on two different checking accounts. Your friend just graduated high…
A: Choosing the right checking account is an important decision, especially for those who are just…
Q: What present value amounts to $8688.26 if it is invested for 2 years at 11% compounded every 4…
A: The PV of an investment refers to the value of all the future cash flows that the investment…
Q: Q6. A. Define break even analysis. B. Calculate NPV and IRR from data given below Project B $50000…
A: NPV represents the value generated by a project in regard to absolute profitability. IRR represents…
Q: Two partners agree to invest equal amounts in their business. One will contribute $10,000…
A: Future value refers to the value of the current asset at some future date affected due to inflation…
Q: It costs Salesiana Publishing house Php 350 000 to make books. The Php 350 000 is a fixed cost or a…
A: The sale price and the cost structure are known. The break-even sales volume has to be determined.
Q: You are considering how to invest part of your retirement savings. You have decided to put $200,000…
A: Return on stocks refers to the minimum return to be earned over the investment made initially. It is…
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- Use the following information to calculate, to one decimal place, the return on assets (ROA) for FY21: FY21 FY20 $m $m Total assets 5,887 5,000 Finance costs 50 Тах expense 300 Profit 700AFN EQUATION Refer to Problem 16-1 and assume that the company had 3 million in assets at the end of 2019. However, now assume that the company pays no dividends. Under these assumptions, what additional funds would be needed for the coming year? Why is this AFN different from the one you found in Problem 16-1?Cash Flow From AssetsIf your corporation's operating cash flow for 2020 is $7,300, net capital spending is $3,500, and your change in net working capital is $1,600, what is your 2020 cash flow from assets? Please show your formula and calculations in the space provided.
- What was free cash flow (in millions of dollars) for the year ended January 30, 2021 (denoted as fiscal 2020 in Target's statements)? Free Cash Flow $ 7,918 X millionFree Cash FlowsUsing Rhodes Corporation’s financial statements (shown after part f), answerthe following questions.a. What is the net operating profit after taxes (NOPAT) for 2018?b. What are the amounts of net operating working capital for both years?c. What are the amounts of total net operating capital for both years?d. What is the free cash flow for 2018? e. What is the ROIC for 2018?f. How much of the FCF did Rhodes use for each of the following purposes:after-tax interest, net debt repayments, dividends, net stock repurchases,and net purchases of short-term investments? (Hint: Remember that a netuse can be negative.)Show the solution in good accounting form. Thank you! 1. What is the actual return on plan assets for the current year? a. ₱ 100,000 b. ₱ 430,000 c. ₱ 370,000 d. ₱ 400,000
- Calculate Computron’s free cash flow. Identify what you think are Computron’s “net Uses” of its FCF. Hint: FCF = NOPAT - Net investment in capital from previous to current year. Computron's Balance Sheets (Millions of Dollars) 2019 2020 Assets Cash and equivalents $ 60 $ 50 Short-term investments 100 10 Accounts receivable 400 520 Inventories 620 820 Total current assets $ 1,180 $ 1,400 Gross fixed assets $ 3,900 $ 4,820 Less: Accumulated depreciation 1,000 1,320 Net fixed assets $ 2,900 $ 3,500 Total assets $ 4,080 $ 4,900 Liabilities and equity Accounts payable $ 300 $ 400 Notes payable 50 250 Accruals 200 240 Total current liabilities $ 550 $ 890 Long-term bonds 800 1,100 Total liabilities $ 1,350 $ 1,990 Common stock 1,000 1,000 Retained earnings 1,730 1,910 Total equity $ 2,730 $ 2,910 Total liabilities and equity $ 4,080 $ 4,900 Computron's Income Statement (Millions of Dollars) 2019 2020…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…Q1. Complete the statement provided, for a tax rate of 20% and calculate the Operating cash flow 2019 Income Statement 201,200 108,660 20,790 27,300 Sales Cost of goods sold Selling & Administrative Depreciation EBIT Interest 5,520 EBT Таxes NI Dividends 9,343 21,801 Addition to retained profits
- Ag/ionmResponse pli=1 Consider the following statement of cash flows for Chicken Fil-A company. (in thousands) Cash flows from operating activities (CFO): 2020 2019 Net income $8,100 $6,800 Adjustments to reconcile net income to CFO Depreciation and amortization 3,100 900 (600) 1,600 Deferred income taxes 700 Other non-cash items (700) (Increase) decrease in operating assets and liabilities: Accounts receivable Inventories Other current assets Accounts payabie Income taxes payable (7,800) (2,100) (900) 1.300) (2,300) 1,700 2,000 4.100 (800) 700 13.800 400 Accrued liabilities 1,700 1500 Net CFO Cash flows from investing activities: Purchases of property and equipment Net cash used by investing activities Cash flows from financing activities: Proceeds from common stock sales Proceeds (repayments) of short-term debt Repayment of long-term debt Net cash provided by financing activities (800) (800) (1200) (1.200) 4700 4.600 (1,100) 13.300 200 4600 200 5.300 12.800 30 600 17.800 %2435.900…Cash flow from assets for the year 2022: Cash flow from assets = Operating cash flow – Change in net working capital – Net capital spending = $34,630 - $7,280 - $11,090 = $16,260 Cash flow to creditors for the year 2022: Cash flow to creditors = Interest paid - Ending long term debt + Beginning long term debt= $2,890 - $30,000 + $28,000 = $890 Cash flow to stockholders for the year 2022:Cash flow to stockholders = Dividends paid - Net new equity = $10,800 - $11,780 = -$980 Briefly comment on the Life Positive Inc’s cash flows for 2022 in light of an expansion plan which will be financed by both debt and equity.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