Doral Division of Resorts International reported net operating profit after taxes totaling $120,000 in 2017. The cost of capital is 10.5 percent and the invested capital is $560,000. R&D incurred in 2017 was $100,000. The company's policy is to amortize intangible assets over 4 years. The income tax rate is 30 percent. How much is the company's economic value added for 2017? a. $75,825 b. $105,825 c. $825 d. $70,825
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Doral Division of Resorts International reported
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- Acer Systems, a manufacturer of gaming consoles, has $5,520,000 in assets. Temporary current assets Permanent current assets Capital assets Total assets $1,340,000 1,840,000 2,340,000 $5,520,000 Short-term rates are 5 percent. Long-term rates are 7.5 percent. (Note that long-term rates imply a return Earnings before interest and taxes are $1,130,000. The tax rate is 25 percent. Assume the term structure a becomes inverted, with short-term rates going to 10 percent and long-term rates 5 percentage points lowe rates. If long-term financing is perfectly matched (hedged) with long-term asset needs, and the same is true of sh what will earnings be after taxes? For an example of perfectly hedged plans, see Figure 6-8. Earning after taxes $Home Depot entered fiscal 2017 with a total capitalization of $21,907 million. In 2017, debt investors received an interest income of $878 million. Net income to shareholders was $8,657 million. (Assume a tax rate of 21%.) Calculate the economic value-added assuming its cost of capital is 10%Gabbert’s Corporation expects to have sales of $15 million. Costs other than depreciations are expected to be 77% of sales, and depreciation is expected to be $1.8 million. All sales revenues will be collected in cash, and costs other than depreciation must be paid for during the year. The federal tax rate is 25%. Interest expense is $210,000. 1. Set up an income statement. What is Gabbert’s expcted net income? Its expected net cash flow? 2. Suppose Congress changed the tax laws so that Gabbert’s depreciation expenses went up by 60%. No changes in operations occurred. What would happen to the reported profit and to net cash flow? 3. Now suppose that Congress changed the tax laws such that, instead of increasing Gabbert’s depreciation, it was reduced by 60%. How would the profit and the net cash flow be affected? 4. If this were your company, would you prefer Congress to cause your depreciation expense to be increased or reduced? Why?
- The Centennial Chemical Corporation announced that, for the period ending March 31, 2017, it had earned income after taxes of $2,768,028.25 on revenues of $13,144,680. The company’s costs (excluding depreciation and amortization) amounted to 61 percent of sales and it had interest expenses of $392,168. What is the firm’s depreciation and amortization expense if its average tax rate is 34 percent?Fusion Energy Co's earnings before interest and taxes (EBIT) was $275 million. Assuming Fusion Energy's tax rate is 25%, what is their net operating profit after taxes (NOPAT) for 2015 expressed in millions of dollars? Now: In 2015, Fusion Energy spent $30 million on capital expenditures, experienced a decrease in net working capital (including cash) equal to # 70 million, and realized $10 million in depreciation. What is Fusion Energy's unlevered free cash flow for 2015? 393.75 116.25 373.75 256.25XYZ Corp. had the following data for 2012, in millions: Net income = $500; EBIT = $700; Depreciation & Amortization = $100; and Gross fixed assets = $2,000. Information for 2013 is as follows: Net income = $625; EBIT = $925; Depreciation & Amortization = $110; and Gross fixed assets = $2,280. Assume the tax rate is 40% and the company invested $160 in NOWC in 2013. How much free cash flow did the firm generate during 2013?
- The 2021 income statement for Duffy's Pest Control shows that depreciation expense was $203 million, EBIT was $516 million, and the tax rate was 35 percent. At the beginning of the year, the balance of gross fixed assets was $1,586 million and net operating working capital was $423 million. At the end of the year, gross fixed assets was $1,839 million. Duffy's free cash flow for the year was $429 million. Calculate the end-of-year balance for net operating working capital. (Enter your answer in millions of dollars rounded to 1 decimal place.) Net operating working capital millionCompany 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?Fusion Energy Co’s earnings before interest and taxes (EBIT) was $275 million. Assuming Fusion Energy’s tax rate is 25%, what is their net operating profit after taxes (NOPAT) for 2015 expressed in millions of dollars
- xyz company a for profit business had a revenue of 12 million in 2022. Ezpenses other than depreciation totaled 75 percent revenues, and depreciation expense was 1.5 million. xyz company must pay taxes at a rate of 40 percent of pretax (operating) income. All revenues were collected in cash during the year, and all expenses other than depreciation were paid i cash. Depreciation orginally was 1.5 million; however, now the company 750000 in depreciation expense instead of 1.5 million. what would cash flow beCompany DotThrive reported the following financial results. Operating income is $61.32 million and depreciation and amortization is $6.84 million. The company spent $11.69 million buying new equipment and sold $4.50 million old equipment (this is the after-tax salvage). Net working capital increased by $2.63 million from previous year. The company's tax bracket is 21%. What's the company's Free Cash Flow (FCF) for the year? Note: the unit of your answer should be in millions of dollars, with 2 decimal points.Nighthawk Steel, a manufacturer of specialized tools, has $4,700,000 in assets. Temporary current assets Permanent current assets Capital assets $1,400,000 1,520,000 1,780,000 Total assets $4,700,000 Short-term rates are 10 percent. Long-term rates are 15 percent. (Note that long-term rates imply a return to any equity). Earnings before interest and taxes are $1,000,000. The tax rate is 20 percent. If long-term financing is perfectly matched (hedged) with long-term asset needs, and the same is true of short-term financing, what will earnings after taxes be? For an example of perfectly hedged plans, see Figure 6-8. Earnings after taxes