Intro Income statement for 2016 (in $) 2016 Sales 400,000 Costs (incl. depr.) 280,000 EBIT 120,000 25,000 26,600 68,400 Interest Taxes (28%) Net income Sales are expected to increase by 20% in 2017, while costs including depreciation are expected to reach 60% of sales. Interest expenses and the average tax rate are expected to stay constant.
Q: What will it be worth in 25 years?
A: We can determine the FV of an amount using the formula below:In the formula above, PV = deposit =…
Q: a) Calculate the breakeven number of books to be sold. b) Calculate the estimated profit for the…
A: We are going to complete this question using the formula below:
Q: 3. You are bullish on ITC stock. The current market price is $100 per share, and you have $400,000…
A: 1.Number of shares bought = 2.rate of return =
Q: Find the amount to which $500 will grow under each of these conditions: a. 16% compounded annually…
A: The formula for calculating the future value isPresent value, PV = $500a.r = 16%n = 7 The future…
Q: Philadelphia Corporation's stock recently paid a dividend of $2.00 per share (D0 = $2), and the…
A: Capital asset pricing model can be used to compute the cost of equity capital of a company:Here,Cost…
Q: An investor enters today into a one-year-long currency forward on 1000000 units of foreign currency.…
A: A currency forward contract is a financial agreement between two parties to exchange a specific…
Q: A car loan is taken for $20,000 to be paid back in 6 years, with monthly payments of $304. What…
A: We need to use RATE function in excel to calculate annual rate to be charged on loan. The formula is…
Q: Consider the following two independent investment opportunities that are available to Lion, Inc. The…
A: Here, YearProject Y Cash Flows0 $ (2,162.00)1 $ 909.002 $…
Q: a rise in risk premium will cause bond market prices to rise? true or false?
A: A risk premium is the additional return an investor expects to earn for taking on more risk compared…
Q: Required: Suppose you conduct currency carry trade by borrowing $1 million at the start of each year…
A: A currency carry trade is a strategy in which an investor borrows in a low yielding currency and…
Q: company observes that the value date for an electronic transfer payment to one of Its suppliers…
A: A customer is trying to offer a discount good enough for the supplier to make electronic payment…
Q: Weatherford purchased a machine with 5 year MACRS for 200,000. They spent an additional 25,000…
A: Purchase Price of Machine = 200,000Total Additional Cost = 25,000 + 25,000 = 50,000MACRS…
Q: You are thinking about buying a savings bond. The bond costs $57 today and will mature in 10 years…
A: Present Value = pv = $57Time = t = 10 YearsFuture Value = fv = $114
Q: Three put options on a stock have the same expiration date and strike prices of $55, $60, and $65.…
A: A butterfly spread is an options trading strategy that involves using three strike prices and two…
Q: London purchased a piece of real estate last year for $81,800. The real estate is now worth…
A: Beginning value = $81,800Ending value = $104,600Total required return = 0.22 The formula for…
Q: 1. FastDrop economic value You are planning to place your money in safe government securities, which…
A: 1.Appropriate discount rate = Risk free rate + Risk premium2. Present value is calculated by…
Q: 22. When you use Discount Dividend Model (DDM) to compute the stock price, w correct? (Assume:…
A: In dividend discount model, the price of stock is calculated as the present value of dividend and…
Q: classic car was for sale with a current asking price of $45,000. If a return of 8.5%, compounded…
A: Prices tends to increase with time due to interest and inflation due to the compounding of the that…
Q: You hire Susan for a three-year term. She has no retirement plan, so you agree to invest money…
A: Present value factor is computed by following formula:-Present value factor = wherer = interest…
Q: Suppose that you are 25 years old and you plan to begin contributing to a retirement fund earning…
A: In retirement planning one needs to calculate how much amount is needed for retirement and then…
Q: investor in Treasury securities expects inflation to be 2.2% in Year 1, 2.7% in Year 2, and 3.65%…
A: The Maturity Risk Premium (MRP) is the additional compensation investors require to hold longer-term…
Q: Consider a risky portfolio. The end-of-year cash flow derived from the portfolio will be either…
A: A collection of different types of securities for the investment is term as the portfolio.
Q: Du Pont Equation 5-14. The following financial data relate to Ukulele Bottom Company's business in…
A: When the net income that the shareholders can enjoy is divided by the total equity value, i.e., the…
Q: Bravo Manufacturing Company is negotiating with a customer for the lease of a large machine…
A: Lease is kind of agreement in which there are no initial investment and only periodic payments are…
Q: Use Bird Industry's summary financial statements to answer the following questions. Bird Industries,…
A: The common stock dividends are paid out of the current year profits or accumulated profits of the…
Q: Gross Profit Margin Operating Margin Net Profit Margin hich of the following statements is true?…
A: Gross Profit Margin: Measures the percentage of profit a company makes after subtracting the cost of…
Q: Bob wants to retire in 15 years, and he wants his savings to be enough to provide the same buying…
A: The Future Value of a Growing Annuity is the total value of a series of periodic cash flows that…
Q: Costs associated with the manufacture of miniature high-sensitivity piezoresistive pressure…
A: Present worth is a financial concept used to determine the current value of future cash flows. It…
Q: In the early 1980s, at a time when interest rates were at historical highs, investment banking firms…
A: U.S. government bonds, also known as Treasury bonds or simply Treasuries, are debt securities issued…
Q: Angina Inc has 5 million shares outstanding The firm is considering issuing an additional 1 million…
A: Proceeds from stock sale = Number of shares issued * Offer price per share.Net proceeds from stock…
Q: IBM stock currently sells for 100 dollars per share. The implied volatility equals 20.0. The…
A: The delta of a call option is a measurement that represents the sensitivity of the option's price to…
Q: Given the following information for the Vanderbilt Tire Company, find ROA (Return on Assets): Debt…
A: Return on Assets (ROA): ROA is a financial ratio that measures a company's profitability of its…
Q: If a bank compounds savings accounts monthly, the effective annual rate is greater than the nominal…
A: Nominal rate is the rate mentioned in the loan term or loan agreement. Hence nominal rate is the…
Q: What are your posible revenues that you can earn to meet your goal
A: The equation to determine the profit is as follows. By rearranging the formula, we can determine the…
Q: Colonel Motors (C) Separated Edison (S) Expected Return 10% 8% Standard Deviation 6% 3% Please…
A: Here, Expected ReturnStandard DeviationC10%6%S8%3%
Q: You deposit $1,200 in your bank account. a. If the bank pays 5% simple interest, how much will you…
A: a. Amount deposited = $1,200Interest rate, r = 5%Period, t = 8 yearsIf the bank pays simple…
Q: Sixteen years ago, Alicia invested $500. Eight years ago, Travis invested $900. Today, both Alicia's…
A: Value of money increases with time due to amount of return earned in the form of interest and…
Q: Strike Jul 160 165 170 6.00 2.70 0.80 Calls Aug TOR: 8.10 5.25 3.25 Oct 11.10 8.10 6.00 Jul Aug…
A: A butterfly spread is an options trading strategy that involves using three strike prices and two…
Q: A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a…
A: Sharpe ratio refers to the measurement of the risk-adjusted performance of the company. It is…
Q: You receive a $8,000 check from your grandparents for graduation You decide to save it toward a down…
A: The expected time horizon during which an investment is to be held is known as the investment…
Q: Medical bills are an example of an annuity. Question 6 options: A) True B) False
A: First, let us define annuity. An annuity is a financial product designed to provide a series of…
Q: Davis Technology recently hired you as a consultant to help with its capital budgeting process. The…
A: NPV is also known as Net present Value. It is a capital budgeting technique which helps in decision…
Q: Your birthday is next week and instead of other presents, your parents promised to give you $2,400…
A: The concept of time value of money will be used here.As per the concept of time value of money any…
Q: For a 30-year house mortgage of $75,000 at 4.6% interest, find the following. (Round your final…
A: Loan amortization refers to the repayment of the loan amount. In the process of amortization…
Q: We know the following expected returns for stocks A and B, given the different states of the…
A: 1. Expected return is computed by following formula-Expected return = WhereRi = return of stockPi =…
Q: You purchased a share of stock last year for $50. You collected a dividend of $1 and sold it for…
A: The dividend yield is calculated using the formula,
Q: payments for an expected 4 years. If rates are assumed to be 5% compounded monthly, how large will…
A: Using time value of money concepts, we can determine the monthly payments.
Q: Solve the problem. 3) Total profit is defined as total revenue minus total cost. R and C are the…
A: Number of televisions sold, x = 50 The total revenue from sales is The total costs is
Q: Calculate the Present Value given the following: Jack invests $5,000 at the end of year 1, and…
A: We need to use present value formula below to calculate present valuePresent value =Future value/( 1…
Q: Suppose the risk-free interest rate is 6.2% APR with monthly compounding. If a $3.3 million MRI…
A: Here, Interest Rate6.20%Lease Amount $3,300,000.00Monthly Lease Payment $38,500.00Annuity…
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- Using the Percent-of-Sales method, please forecast 2016 using the following assumptions 2016 Cash level increased to 5% of sales 2016 Revenue growth of 25% 2016 Deprecation of $50 2016 Interest rate on short-term debt of 8% 2016 Tax rate of 35% 2016 Receivable days of 25 2016 Inventory days of 500 2016 Capital Expenditure of $60 2016 Purchases are 40% of COGS If the new value is not given above, please match the 2015 ratio (when available). USE CELL REFERENCES. Financial Ratio Analysis and Benchmarking 2012 2013 2014 2015 2016E Revenue growth 2.9% 2.4% 12.5% 15.5% Gross margin (Gross profit / Revenue) 48.9% 46.9% 51.8% 52.0% Receivable days (AR / Revenue * 365) 41.9 45.0 48.0 50.9 Inventory days (Inventory / COGS * 365) 424.2 432.1 436.5 476.3 Payable days (AP / Purchases * 365) 15.6 13.3 10.2 9.9 NFA turnover (Revenue / NFA) 2.4 2.4 2.4…2. 1. 1. Given the most recent financial statements for FY2023. Sales for FY2024 are expected to grow by 10 percent. The following assumption must be held in the pro forma financial statements. The tax rate (percentage), the interest expense ($ amount), and the dividend payout ratio (percentage) will remain constant. COGS, SGA, Depreciation, all current asset accounts, Net PPE, intangibles, other assets, and accounts payable increase spontaneously with sales. Calculate the pro forma value for total assets for FY24 if the firm operates at full capacity and no new debt or equity is issued. (Enter percentages as decimals and round to 4 decimals) 2. Given the most recent financial statements for FY2023. Sales for FY2024 are expected to grow by 10 percent. The following assumption must be held in the pro forma financial statements. The tax rate (percentage), the interest expense ($ amount), and the dividend payout ratio…How much is the VAT Payable in May? Given the following data during the 2nd quarter of 2022 Output Tax 12,000.00 Month Input Tax April May June 7,000.00 18,000.00 15,000.00 24,000.00 10,000.00 In the books, there was a debit balance of input tax amounting to 6,000 from preceding quarter. 3,000 2,000 1,000
- 2. Over the last nine years, you have earned the following returns on the NZX Year (ending in March) 2013-2014 17.45% 2014-2015 15.17% 2015-2016 17.26% 2016-2017 7.94% 2017-2018 16.92% 2018-2019 19.54% 0.36% 2019-2020 2020-2021 28.93% 2021-2022 -5.17% Return You have also collected the level of the CPI over the same period: Date March 2013 March 2014 March 2015 March 2016 March 2017 March 2018 March 2019 March 2020 March 2021 March 2022 Level 958 972 975 979 1000 1011 1026 1052 1068 1142 (a) For each tax year, calculate the inflation rate. (b) Now calculate a real rate of return for the NZX50 (use the full for- mula, not the approximation) for each year. (c) What is the mean nominal return for the NZX50? What is the mean real return? (d) What is the nominal volatility for the NZX50? What is the real volatility of the NZX50? (e) Suppose New Zealand had a 33% tax levied on capital gains and all dividends. Repeat your analysis, calculating after-tax mean real and nominal returns, along…Assume that the base year is 2015. Good 2015 Price 2015 Quantity 2016 Price 2016 Quantity $2 250 $3 200 $3 300 $2 400 $4 400 $5 500 A B C 9. What was the inflation rate between the two years? O A) 1 percent O B) 2 percent O C) 3 percent O D) 4 percent O E) 8 percent 27Assume that in 2019 the nominal GDP in Scoob was $ 20 trillion and in 2020 the nominal GDP was $ 24 trillion. What was the growth rate of nominal GDP between in 2020? (give your answers rounded to 1 decimal place) A. 16.7% B. 10.0% C. 20.0% D. 83.3%
- What is the statement of comprehensive income for the year Dec. 2020 showing the ratio of each item to sales expressed as a percentage (vertical analysis)? Additional information: • There are only 300 business days during the year. The annual amortization of long term notes is 250,000.Pro forma balance sheet Peabody & Peabody has 2019 sales of $10 million. It wishes to analyze expected performance and financing needs for 2021, which is 2 years ahead. Given the following information, respond to parts a and b. (1) The percent of sales for items that vary directly with sales are as follows: Accounts receivable, 12% Inventory, 18% Accounts payable, 14% Net profit margin, 3% (2) Marketable securities and other current liabilities are expected to remain unchanged. (3) A minimum cash balance of $480,000 is desired. (4) A new machine costing $650,000 will be acquired in 2020, and equipment costing $850,000 will be purchased in 2021. Total depreciation in 2020 is forecast as $290,000, and in 2021 $390,000 of depreciation will be taken. (5) Accruals are expected to rise to $500,000 by the end of 2021. (6) No sale or retirement of long-term debt is expected. (7) No sale or repurchase of common stock is expected. (8) The dividend payout of 50% of net profits is expected to…Reported Horiron Period S millions 2018 2019 2020 2021 2022 Terminal Period $14.768 $15454 $16591517,589 $18.644 2711 2880 9.462 10.028 10630 11268 11544 Sales S15017 NOPAT 3,053 3236 JA10 NCA 12.183 Answer the following requirements assuming a discount rate (WACC) of 735, a terminal period growth rate of 2% common shares outstanding of 328.1 miion, and net nonoperating obligations (NN0) of 16,204 million (al Estimate the value of a share of ITWS common stock using the discounted cash flow (DCF model as of December 31, 2018 Instructions: • Round all answers to the nearest whole number, except for discount factors, shares outstanding (do not roundi and stock price per share. Round discount factors to 5decimal.places • Round stock price per share to two decimalplaces Do not use negative signs with any of your answers Forecast Horizon 2021 Reported 2020 2022 Terminal Period (S milions) 2018 2019 increase in NOA FCFF INOPAT increase in NOA) Discount factor 1/ Present value of horuon FCFF…
- please calculate the following: 2017 2018 2019 2020 Quick ratio Debt ratio Interest coverage ratio Dividend yield 4- current assets- 1,170.7m 4- inventory- 859.9 m 4- current liabilities- 885.8 m 5- total debts- 1,598.8 5- total assets- 2,452.3 6- operating profit- 259.2 6- interest expense/ finance cost- 10.7m 7- annual dividends per share- 118.0 cents (46. cents per share) 7- current share price- $24.71 2018 4- current assets-1,210.5 m 4- inventory- 891.1 m 4- current liabilities- 917.2 m 5- total debts- 1.544.1m 5- total assets 2,491.7 m 6- operating profit- 334.5 m 6- interest expense/ finance cost- 16.6 m 7- annual dividends per share- 132 (46. cents per share) 7- current share price- $21.48 2019 4- current assets- 1,276.5 m 4- inventory- 886.7 m 4- current liabilities- 927.1 mill 5- total debts/ total liabilities- 1,504.7 m 5- total assets- 927.1 mill 6- operating profit/ profit before tax- 359.3 mil 6- interest expense/ finance cost-…Use the table below to answer the following questions. a. Calculate the growth rate of real GDP for each year from 2017 to 2021: (Enter your responses rounded to two decimal places and include a minus sign if necessar Real GDP Annual Growth rate of Real Year (Billions of 2012 dollars) GDP 18,079 18,607 2017 2018 2.92 % 2019 19,033 2.28 % 2020 18,385 -3.40 % 2021 19,427 5.66 % *Real-time data provided by Federal Reserve Economic Data (FRED), Federal Reserve Bank of Saint Louis. b. Calculate the average annual growth rate of real GDP for the period from 2017 to 2021. Average annual growth rate =%. (Enter your response rounded to two decimal placos.)Question 6 Anita Limited has shared their annual sales revenue over the last 6 financial years from 2015 to 2020. Year Sales ($ 000) 2015 4500 2016 5100 2017 4900 2018 5400 2019 5670 2020 6000 You are required to; Using linear trend equation forecast the sales revenue of Anita Limited for 2021. ANSWER: Calculate the forecasted sales difference if you use 3-period weighted moving average designed with the following weights: 2018 (0.1), 2019 (0.3) and 2020(0.6).
