Estimate a firm's economic value added (EVA) based on the following information: NOPAT = $400,000; amount of financial capital used = $1,600,000; and WACC = 19%.  $26,000 $36,000 $96,000 54,000

Given are the following data for year 1:Revenue = $45 million; Variable cost = $10 million; Fixed cost = $5 million; Depreciation = $1 million; Interest expense = $3 million; Capital expenditure = $12 million; Change in working capital = $2 million. Corporate tax rate is 30%. Calculate the free cash flow to firm (FCFF) for year 1:      a. $4.2 million   b. $6.3 million   c. $7.3 million   d. $5.2 million

Assuming a firm's weighted average cost of capital is 11%, what is the net present value (NPV) of the following project? Year Net Cash Flow -$450,000 $150,000 $200,000 $350,000 0 1 2 3 $30,257 $130,257 O $103,377 $553,377

For the most recent year, Robin Company reports operating income of $660,000. Robin's sales margin is 7%, and capital turnover is 2.0.What is Robin's return on investment (ROI)?   Question 15 options:   2%   7%   4%   14%

If a firm has an EV of $820 million and EBITDA of $187 million, what is its EV ratio?

Average Rate of Return Method, Net Present Value Method, and Analysis for a service company The capital investment committee of Arches Landscaping Company is considering two capital investments. The estimated operating income and net cash flows from each investment are as follows:   Front-End Loader   Greenhouse Year OperatingIncome Net CashFlow   OperatingIncome Net CashFlow 1 $58,000   $177,000     $122,000   $283,000   2 58,000   177,000     93,000   239,000   3 58,000   177,000     46,000   168,000   4 58,000   177,000     20,000   115,000   5 58,000   177,000     9,000   80,000   Total $290,000   $885,000     $290,000   $885,000     Each project requires an investment of $580,000. Straight-line depreciation will be used, and no residual value is expected. The committee has selected a rate of 12% for purposes of the net present value analysis. Present Value of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 2 0.890 0.826…

Calculation of individual costs and WACC   Dillon Labs has asked its financial manager to measure the cost of each specific type of capital as well as the weighted average cost of capital. The weighted average cost is to be measured by using the following​ weights: 40​% ​long-term debt, 25​% preferred​ stock, and 35​% common stock equity​ (retained earnings, new common​ stock, or​ both). The​ firm's tax rate is 26​%.   Debt The firm can sell for ​$1000 a 15​-year, ​$1,000​-par-value bond paying annual interest at a 6.00​% coupon rate. A flotation cost of 3​% of the par value is required.   Preferred stock   7.00​% ​(annual dividend) preferred stock having a par value of ​$100 can be sold for ​$92. An additional fee of ​$3 per share must be paid to the underwriters.   Common stock  The​ firm's common stock is currently selling for ​$60 per share. The stock has paid a dividend that has gradually increased for many​ years, rising from ​$3.00 ten years ago to the ​$4.89 dividend​ payment,…

Determine the investment's worth.%

What is the net present value of a capital investment project that has the followingaftertax cash flows for a company that requires a 15% rate of return on the project?Time     Cash Flow0          -$4,0001              5002           2,0003          5,000

What is the NPV of the estimated cash flows for the following project using a Weighted Average Cost of Capital of 7.0%? Year 0 1 2 3 Cash Flow -140 50 70 90 Group of answer choices 47.54 38.63 59.94 70.00 41.34