A firm has the following balance sheet for year 2020 (millions of dollars): Cash $12 Accounts payable $ 108 Short-term investment 30 Accruals 72 Accounts receivable 180 Notes payable 67 Inventory 180 Long-term debt 150 Net Fixed assets 300 Common stock 50 Retained earnings 255 Total liabilities Total assets $702 and equity $702 In 2020, a firm has Sales 500 million, Cost of good solds 300 million, Operating profit (EBIT) of $150 million, NIl of 60 million and tax rate is 40%. In year 2019, a firm has $460 million of tota operating capital (i.e., Net operating working capital + net fixed assets). What is the free cash flow for year 2020?
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- An analyst is studying the company LEMO in order to make an investment decision. The investor's estimates of Free Cash Flows to Firm (FCF), levels of debt and net Financial Expenses (FE) of the company are presented in Table 1. Table 1 Year 2020 Year 2021 | Year 2022 | Year 2023 Year 2024 Year 2025 FCF €10000 €11300 €10950 €12500 €12750 Level of €1000 €1200 €1450 €1350 €1600 €1675 debt FE €70 €90 €100 €108 €115 Additionally, the analyst has made the following assumptions: (i) risk-free interest rate: 1.5 %; (i) target capital structure: debt/(debt + equity) ratio of 45%; (ii) equity risk premium: 6%; (iv) asset beta: 1.15; and (v) tax rate: 20%. The number of shares of the company is 1 2000 and the current market price of LEMO is €8.0 per share. Present your result rounded to one decimal place. a. Compute the yearly Equity Free Cash Flows (EFCF) for the period from 2021 until 2025. Explain your answer. b. Assume the expected nominal growth rate of the EFCF in perpetuity is 1.25%.…Calculate the 2020 quick ratio using the following information: Balance Sheet Cash and Cash Equivalents Marketable Securities Accounts Receivable Total Current Assets Total Assets Current Liabilities Long Term Debt Shareholders Equity Income Statement Interest Expense Net Income Before Income Taxes .60 .80 .10 ).67 2020 5,000 15,000 10,000 40,000 70,000 50,000 10,000 10,000 7,500 45,000From the following forecast the Balance sheet for the year 2021Balance sheet as of 31/12/2020Liabilities& Equity AmountAssetsAmountEquity33,000 Plant and machinery 10,000Retained earnings 10,000 Land Property20.000Accounts payable 7,000 Accounts receivables 3.000Inventories10.000Cash in hand2000Cash at Bank5.00050,00050,0001. It is expected that the company will make a net income of10% of forecasted sales2. The company will purchase additional 5000 OMR worthmachines by taking an additional loan of 5000 OMR3. Forecasted sales OMR 100,0004. Dividend payout will be 50%5. The following estimates are also given;Accounts payable 10,000Accounts receivable 6,000Inventories 15,000Cash in hand 6.000Cash at bank 1,000
- A company has the following items for the fiscal year 2020: Total Equity = 15 million Total Assets = 30 million EBIT = 4 million Interest expense = 1 million Calculate the company’s equity multiplier and interest coverage ratioBegin with the partial model in the file Ch02 P21 Build a Model.xlsx on the textbooks Web site. a. Using the financial statements shown here for Lan Chen Technologies, calculate net operating working capital, total net operating capital, net operating profit after taxes, free cash flow, and return on invested capital for 2020. The federal-plus-state tax rate is 25%. b. Assume there were 15 million shares outstanding at the end of 2019, the year-end closing stock price was 65 per share, and the after-tax cost of capital was 10%. Calculate EVA and MVA for 2020. Lan Chen Technologies: Income Statements for Year Ending December 31 (Millions of Dollars) Lan Chen Technologies: December 31 Balance Sheets (Thousands of Dollars)Calculate the risk-weighted asset for this amount. A Commercial Banking business line (15%) that reports positive profits in the last 3 years: $750,000.00 in 2017, $600,000.00 in 2018, $300,000.00 in 2019. For $550,000.00 MXN Select one: a.$82,500.00 MXN. b.$99,000.00 MXN. c.$28,500.00 MXN. d.$66,000.00 MXN.
- Given the information above, what amount is the firm’s 2023 free cash flow (FCF)? A. $20.50 B. $25.45 C. $30.00 D. $36.05Abacus Co., provided these data for 2020: Income from continuing operations 4,000,000 800,000 Unrealized gain on financial asset at FVPL Unrealized gain on equity investment at FVOCI 1,000,000 1,200,000 Unrealized loss on debt investment at FVOCI Loss on credit risk a financial liability at FVPL Unrealized gain on futures contract designated as cash flow hedge Net remeasurement gain on a defined benefit plan Translation loss on foreign operation Income from discontinued operations Revaluation surplus 300,000 400,000 600,000 200,000 500,000 2,500,000 How much should be reported as other comprehensive income for 2020?Consider a simple firm that has the following market-value balance sheet: Assets Liabilities end equity $1 040 Debt Equity $400 640 Next year, there are two possible values for its assets, each equally likely: $1 180 and $960. Its debt will be due with 4.9% interest. Because all of the cash flows from the assets must go to either the debt or the equity, if you hold a portfolio of the debt and equity in the same proportions as the firm's capital structure, your portfolio should earn exactly the expected return on the firm's assets. Show that a portfolio invested 38% in the firm's debt and 62% in its equity will have the same expected return as the assets of the firm. That is, show that the firm's pre-tax WACC is the same as the expected return on its assets. If the assets will be worth $1 180 in one year, the expected return on assets will be %. (Round to one decimal place.)
- Assume the following free cash flows for Elle Inc. for Year 6 and forecasted FCFF for Year 7 onward (in millions): Current Forecast Horizon Terminal Year ($millions) Year 7 Year 8 Year 9 Year 10 Year 11 Free cash flows to the firm (FCFF) $4,973 $5,222 $5,482 $5,757 $6,045 $6,166 The DCF value of the firm using the FCFF information above, a discount rate of 6%, and an expected terminal growth rate of 2%, is: $150,020 million $141,529 million $134,617 million $100,828 million None of these are correct.Suppose a firm has the following information: Operatingcurrent assets = $2.7 million; operating current liabilities =$1.5 million; long-term bonds = $3 million; net plant andequipment = $7.8 million; and other long-term operating assets =$1 million. How much is tied up in net operating workingcapital (NOWC)? ($1.2 million) How much is tied up in total netoperating capital? ($10 million)Years Bank Total Asset 2018 STANBIC 6,205,018 2019. STANBIC. 9,295,682 2020. STANBIC 12,742,132 2018. BARCLAYS 8,994,562 2019. ABSA 11,772,546 2020. ABSA. 12,546,473 Calculate the Herfindahl-Hirschman Index (HHI) for each year using total assets and comment on the level of competition