DataDyne Company reported EBIT of $590 million for the most recent fiscal year. Interest expense were $10 million and the current tax rate was 20%. The firm had depreciation expenses of $100 million and capital expenditures of $150 million. In addition, the firm did have a decrease in net working capital of $30 million. What is DataDyne's free cash flow?
Q: Your bank pays 6.50% interest. You have two planned outlays in the future. You need $5,800 in five…
A: Present Value is also a current value of future benefits at some specified period of time at some…
Q: SOLVE STEP BY STEP IN DIGITAL FORMAT DON'T USE AI | DON'T USE AI I DON'T USE AI | DON'T USE AI | 9)…
A: Loans are paid by fixed monthly payments and these monthly payments carry payment for interest and…
Q: Tulsa Drilling Company has $1.7 million in 14 percent convertible bonds outstanding. Each bond has a…
A: Coupon Rate = 14 % Par Value = $ 1000,Tenure = 10 years,Conversion Ratio = 40 and Stock Price = $…
Q: Price Years Down Payment Rate Payment Interest in 127th Payment $100,000.00 30 20% 4.5%
A: “Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: James Hogan is purchasing a $30,000 automobile, which is to be paid for in 48 monthly installments…
A: Compound = Monthly = 12Present Value = pv = $30,000Number of Payment = nper = 48Monthly Payment =…
Q: Instead, assume that the index is a market cap weighted index, but it is still 550 at the end of the…
A: Calculation of Value of Index : sum of ( quantity , Price in current year ) / sum of ( quantity ,…
Q: P4-6 Calculating Internal Growth [LO3] The most recent financial statements for Bello Company are…
A: The internal growth rate represents the rate of growth achieved by a firm without obtaining external…
Q: Innovation Company is thinking about marketing a new software product. Upfront costs to market and…
A: Net present value is defined as the difference between total cash inflows and total outflows. It…
Q: In the Concord Corporation, indirect labor is budgeted for $51000 and factory supervision is…
A: Flexible budget:A flexible budget is a budget that adjusts to changes in the level of activity or…
Q: Lease versus purchase JLB Corporation is attempting to determine whether to lease or purchase…
A: We have to use excel and its functions to compute the required answers. The cost of leasing and…
Q: QUESTION 3 What is the yearly interest payment on an interest only loan if the loan is 21 years long…
A: Interest is that amount which is paid by the borrower to lender of loan within specified period at…
Q: Southern Pole is developing a special vehicle for Antarctic exploration. The development requires…
A: NPV is also known as Net Present Value. It is a capital budgeting technique which helps in decision…
Q: Tin Roof's net cash flows for the next three years are projected at $72,000, $78,000, and $84,000,…
A: The discounted cash flow method suggests that the value of the firm is equal to the present value of…
Q: Solve the future value formula, FV=PMT- Choose the correct answer below.. OA. n= OB. ok D. n= n= n=…
A: This is based on the concept of time value of money. As per the concept of time value of money the…
Q: Rogot Instruments makes fine violins and cellos. It has $1.8 million in debt outstanding, equity…
A: Capital Structure :Debt capital = $1.78 MillionEquity capital = $2.9 MillionTotal Capital = $1.8 +…
Q: Where does managing office finances begin in the providers office? Explain your answer. Discuss…
A: Health care finance:It includes the allocation of funds for various healthcare services, such as…
Q: What is the payoff of the butterfly spread, if the stock price equals $26 at maturity
A: A call option gives the right but not the obligation to buy at the strike price. In a butterfly…
Q: Wyatt Oil pays a regular dividend of $2.0 per share. Typically, the stock price drops by $2.20 per…
A: When the company receives profits and distributes them among the shareholders. That share of profit…
Q: You find the following Treasury bond quotes. To calculate the number of years until maturity, assume…
A: A bond is a kind of debt security issued by the government and private companies to the public for…
Q: New Business Ventures, Incorporated, has an outstanding perpetual bond with a coupon rate of 11…
A: Price of bond is the present value of the par value of the bond and plus present value of coupon…
Q: fill in the rest of the following table:
A: As the portfolio is to be as risky as the market, the beta of portfolio will be 1. As the risk free…
Q: You are a consultant to a large manufacturing corporation considering a project with the following…
A: The NPV of the project refers to the measure of the profitability of the project by discounting the…
Q: Explain why the comparison of financial ratios may be more meaningful than the comparison of figures…
A: Financial analysis is a crucial aspect of decision-making for investors, creditors, and company…
Q: The Omega Corporation has some excess cash it would like to invest in marketable securities for a…
A: Yield is the rate of return realized on assets by holding the assets but there are taxes applicable…
Q: Companies A and B have been offered the following rates per annum on a $50 million five-year loan:…
A: SWAP is an instrument which allows an individual to switch the interest rate applicable with another…
Q: Your company needs £500,000 per month. You choose to hedge half of the required amount by entering…
A: Futures are standardized contracts. They are used to buy or sell underlying asset at the…
Q: Let It Bleed, Inc, has a bond outstanding with a coupon rate of 6.00 percent and makes semiannual…
A: 1.Market price of bond = Present value of Interest payments + Present value of maturity…
Q: Individual or component costs of capital) Compute the cost of capital for the firm for the…
A: It is the minimum required rate of return expected by the investor on their investment in the firm.…
Q: A.) ABC inc. is considering investing in a new project with an initial cost of $500,000. The project…
A: The average accounting return can be expressed as the return on the investment in percentage terms…
Q: 52-Week Price Lo 10.43 Acevedo .36 34.27 Georgette, Incorporated 2.39 69.50 YBM 2.00 13.95 Manta…
A: The dividend yield is a financial ratio that indicates the percentage return an investor can expect…
Q: What is the coupon rate for the Williams Company bond? Note: Do not round intermediate calculations…
A: A bond's interest payment made in relation to its face value, or par, is known as the coupon rate.…
Q: $8 million invested now will grow to ___________________ by the beginning of the sixteenth year?…
A: The worth of the current deposit or the current investment after a certain period of time at a given…
Q: What amount can be borrowed if seven quarterly payments of $4,600 are made at a 12% annual rate of…
A: Present value refers to the current date value That is the present value of all future cash flows…
Q: Your bank is offering you an account that will pay 23% interest (an effective two-year rate) in…
A: In compounding, there is interest on interest due to which effective interest rate is more than…
Q: Smith Inc. has announced net earnings of $877,500 for this year. The company has 325,660 shares…
A: To calculate the earnings per share (EPS) and the price-to-earnings (P/E) ratio, you can use the…
Q: Phil Dunphy, a real estate agent, is considering whether he should list an unusual $902,958 house…
A: Here,expenses are $3668Commission on sale is $21270The probability of successful selling in 6 months…
Q: You have just assessed a project involving an immediate cash outflow followed by a series of cash…
A: Net Present Value (NPV): NPV is a financial metric that calculates the difference between the…
Q: 14. Francisco Lindor borrows $73,000 at 12 percent interest toward the purchase of a mortgage is for…
A: Annual payments are periodic fixed payments that include the payment for interest and payment for…
Q: Give me 2 examples of time value of money (TVM) equations with answers. show your work below.
A: The Time Value of Money (TVM) is a financial concept that acknowledges the idea that the value of…
Q: Given the following, what is the individual's net worth?
A: We can determine the net worth using the formula below:
Q: How many years (and months) will it take $4 million to grow to $7 million with an annual interest…
A: The concept of TVM refers to the interest-earning capacity of money which leads to money received…
Q: Classification of Cash Flows: For each of the following items, indicate whether the cash flow…
A: Operating activity refers to the day-to-day activities of a business that generate revenue, such as…
Q: Njenge is a special purpose vehicle set up by the Football Association of Zambia (FAZ) and the…
A: Capital Budgeting is used by businesses and organizations to evaluate and select long-term…
Q: An enterprise needs to make the following annuity payments into a private pension fund: £1100 paid…
A: The payment are made at the beginning of the each year. Therefore, there is an annuity due. The…
Q: The following table shows your stock positions at the beginning of the year, the dividends that each…
A: Portfolio is the combination of debt, equity and mixed securities which is being purchased for the…
Q: Stock A just paid a dividend of $2. The dividend is expected to grow at a fixed rate of 1.9% and…
A: To calculate the price of Stock A with a perpetually growing dividend at a fixed rate, you can use…
Q: Cost-Cutting Proposals Tanaka Machine Shop is considering a four-year project to improve its…
A: NPV is also known as Net Present Value. It is a capital budgeting technique which helps in decision…
Q: You are thinking about investing $4,690 in your friend's landscaping business. Even though you know…
A: Present value of future cash flow at comparative risk rate= Future cash flow / (1+expected rate of…
Q: The next dividend payment by Savitz, Incorporated, will be $4.65 per share. The dividends are…
A: Here, Current Stock Price is $42Expected Dividend is $4.65Growth Rate is 5%
Q: Assuming a 12% annual interest rate, determine the present value of a five-period annual annuity of…
A: Annuity refers to a stream of constant and usually fixed cash flows. Here the annual amount of $6200…
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
- In its most recent fiscal year, Boba Tea Corp reported net income of $300,000,000. Looking at its financial statements, we observe that the firm reported depreciation expenses of $125,000,000 and capital expenditures of $150,000,000. The firm had no debt but did experience an increase in NWC of $20,000,000. What is Boba Tea's free cash flow? Select one: O a. $170 million b. $255 million c. $150 million d. $5 million Clear my choice-Butterfly Tractors had $15.50 million in sales last year. Cost of goods sold was $8.30 million, depreciation expense was $2.30 million, interest payment on outstanding debt was $1.30 million, and the firm’s tax rate was 21%. What was the firm’s net income? Note: Enter your answer in millions rounded to 2 decimal places. What was the firm’s cash flow? Note: Enter your answer in millions rounded to 2 decimal places. What would happen to net income and cash flow if depreciation were increased by $1.30 million? Note: Enter your numeric answers in millions rounded to 2 decimal places. Select "unaffected" if the results do not affect the balance. Would you expect the change in depreciation to have a positive or negative impact on the firm’s stock price? What would be the impact on net income if depreciation was $1 million and interest expense was $2 million? What would be the impact on cash flow if depreciation was $1.30 million and interest expense was $2.30 million? Note: Enter your…Company XYZ, an all-equity firm, reported incremental revenues (net income) of $336 million for the most recent year. The firm had depreciation expenses of $141 million and capital expenditures of $196 million. The company also had an increase in net working capital of $20 million. What is the free cash flow? Enter your answer in dollars and round to the nearest dollar.
- An analyst has collected the following information regarding YYYYY: Earnings before interest and taxes (EBIT) = P700 million. Earnings before interest, taxes, depreciation and amortization (EBITDA) = P850 million. Interest expense = P200 million. The corporate tax rate is 40 percent. Depreciation is the company’s only non-cash expense or revenue. What is the company’s net cash flow?Strickler Technology is considering changes in its working capital policiesto improve its cash flow cycle. Strickler’s sales last year were $3,250,000(all on credit), and its net profit margin was 7%. Its inventory turnover was6.0 times during the year, and its DSO was 41 days. Its annual cost of goodssold was $1,800,000. The firm had fixed assets totaling $535,000. Strickler’spayables deferral period is 45 days.a. Calculate Strickler’s cash conversion cycle.b. Assuming Strickler holds negligible amounts of cash and marketablesecurities, calculate its total assets turnover and ROA.c. Suppose Strickler’s managers believe the annual inventory turnover canbe raised to 9 times without affecting sale or profit margins. What wouldStrickler’s cash conversion cycle, total assets turnover, and ROA havebeen if the inventory turnover had been 9 for the year?Disturbed, Incorporated, had the following operating results for the past year: sales = $22,563; depreciation = $1,360; interest expense = $1,096; costs = $16,515. The tax rate for the year was 23 percent. What was the company's operating cash flow?
- Merton Analytics is considering changes in its working capital policies to improve its cash flow cycle. Merton’s sales last year were $4,250,000 (all on credit), and its net profit margin was 7%. Its inventory turnover was 7.5 times during the year, and its DSO was 41 days. Its annual cost of goods sold was $2,200,000. The firm had fixed assets totaling $585,000. Merton’s payables deferral period is 42 days. Calculate Merton’s cash conversion cycle. Assuming Merton holds negligible amounts of cash and marketable securities, calculate its total assets turnover and ROA. Suppose Merton’s managers believe the annual inventory turnover can be raised to 9.5 times without affecting sales. What would Merton’s cash conversion cycle, total assets turnover, and ROA have been if the inventory turnover had been 9.5 for the year?Strickler Technology is considering changes in its working capital policies to improve its cash flow cycle. Strickler’s sales last year were $3,250,000 (all on credit), and its net profit margin was 7%. Its inventory turnover was 6.0 times during the year, and its DSO was 41 days. Its annual cost of goods sold was $1,800,000. The firm had fixed assets totaling $535,000. Strickler’s payables deferral period is 45 days. a. Calculate Strickler’s cash conversion cycle. b. Assuming Strickler holds negligible amounts of cash and marketable securities, calculate its total assets turnover and ROA. c. Suppose Strickler’s managers believe the annual inventory turnover can be raised to 9 times without affecting sales. What would Strickler’s cash conversion cycle, total assets turnover, and ROA have been if the inventory turnover had been 9 for the year?Strickler Technology is considering changes in its working capital policies to improve its cash flow cycle. Strickler's sales last year were $3,250,000 (all on credit), and its net profit margin was 7%. Its inventory turnover was 6.0 times during the year, and its DSO was 41 days. Its annual cost of goods sold was $1,800,000. The firm had fixed assets totaling $535,000. Strickler's payables deferral period is 45 days. (16-12) Working Capital Cash Flow Cycle a. Calculate Strickler's cash conversion cycle. b. Assuming Strickler holds negligible amounts of cash and marketable securities, calculate its total assets turnover and ROA. C. Suppose Strickler's managers believe the annual inventory turnover can be raised to 9 times without affecting sale or profit margins. What would Strickler's cash conversion cycle, total assets turnover, and ROA have been if the inventory turnove had been 9 for the year?
- Strickler Technology is considering changes in its working capital policies to improve its cash flow cycle. Strickler’s sales last year were $3,250,000 (all on credit), and its net profit margin was 7%. Its inventory turnover was 6.0 times during the year, and its DSO was 41 days. Its annual cost of goods sold was $1,800,000. The firm had fixed assets totaling $535,000. Strickler’s payables deferral period is 45 days. Calculate Strickler’s cash conversion cycle. Assuming Strickler holds negligible amounts of cash and marketable securities, calculate its total assets turnover and ROA. Suppose Strickler’s managers believe the annual inventory turnover can be raised to 9 times without affecting sale or profit margins. What would Strickler’s cash conversion cycle, total assets turnover, and ROA have been if the inventory turnover had been 9 for the year?For the fiscal year just ended, Yoran Electronics had the following results: Net income 920,000; Depreciation expense 110,000; Increase in accounts payable 45,000; Increase in accounts receivable 73,000; Increase in marketable securities 40,000; Increase in deferred income tax liability 16,000; Decrease in Long-term debt 200,000. How much is the firm’s net cash flows from operating activities?Company DotThrive reported the following financial results. Operating income is $94.98 million and depreciation and amortization is $6.12 million. The company spent $13.99 million buying new equipment and sold $3.58 million old equipment (this is the after-tax salvage). Net working capital increased by $1.31 million from previous year. The company's tax bracket is 21%. What's the company's Free Cash Flow (FCF) for the year?