Lanigan Logistics needs to evaluate its financial needs for 2024. It is believedthat the relationship between sales and balance sheet items will remain constantwhen compared to 2023 figures.In 2023 LL expects sales of £4 million with net income of £0.5 million anda 50% dividend payout ratio. Sales for 2024 are forecast at £5 million withnet income constant at £0.5 million. Based on the projected balance sheetbelow, estimate the company's external funding requirements for 2024.Lorenzo Logistics Balance Sheet 2023AssetsCurrent Assets£410,000Net Fixed Assets1,150,000Total£1,560,000Liabilities and EquityAccounts Payable£450.000Long Term Debt350,000Total Liabilities£800.000Common Stock£100,000Additional Paid in Capital210,000Retained Earnings450,000Total Equity£760,000Total£1,560,000

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Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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2. Assume that today is December 31, 2021 and you need to determine the firm value of CoolTech, Inc. You have decided to apply the free cash flow valuation model to the firm's financial data that you've developed from a variety of data sources. The key values you have compiled are summarized in the following table: Free Cash Flow Year FCF Other Data Growth rate of FCF, beyond 2025 to infinity = 3% Weighted average cost of capital = 8% 700,000 800,000 950,000 980,000 2022 %3D 2023 %3D 2024 2025 What is the value of the entire CoolTech's entire company? + Factac F%
MGL forecasted the following data for 2022 · Projected unit sales is 5,000 at a selling price of P65. · Variable cost ratio is 60% · Operating break-even point in sales is P250,000 · Earnings before taxes and interest is P30,000 · The P100,000 total debt of the firm requires annual payment of interest at 5%. What is the degree of combined leverage?
Broussard Skateboard's sales are expected to increase by 20% from $8.6 million in 2019 to $10.32 million in 2020. Its assets totaled $3 million at the end of 2019. Broussard is already at full capacity, so its assets must grow at the same rate as projected sales. At the end of 2019, current liabilities were $1.4 million, consisting of $450,000 of accounts payable, $500,000 of notes payable, and $450,000 of accruals. The after-tax profit margin is forecasted to be 6%, and the forecasted payout ratio is 60%. Use the AFN equation to forecast Broussard's additional funds needed for the coming year. $______
Broussard Skateboard's sales are expected to increase by 25% from $7.2 million in 2019 to $9.00 million in 2020. Its assets totaled $5 million at the end of 2019. Broussard is already at full capacity, so its assets must grow at the same rate as projected sales. At the end of 2019, current liabilities were $1.4 million, consisting of $450000 of accounts payable, $500000 of notes payable, and $450000 of accruals. The after-tax profit margin is forecasted to be 3%, and the forecasted payout ratio is 55%. Use the AFN equation to forecast Broussard's additional funds needed for the coming year. Enter your answer in dollars. For example, an answer of $1.2 million should be entered as $1,200,000. Do not round intermediate calculations. Round your answer to the nearest dollar.
Calculate the terminal value of the Canopy project in 2003 and the adjusted free cash flow value for 2003.
You are creating a pro forma balance sheet for the upcoming year. You have already prepared a pro forma income statement, and are predicting total assets will increase by $185,000 due to the increase in sales you are anticipating. How will you choose to finance this new growth in order to make sure the balance sheet balances?
The following table presents forecasted financial and other information for Scandinavian Furniture: Projected EBIT Earnings after tax Free cash flow Havasham's WACC Expected growth rate in FCFs after 2014 Warranted MV firm/FCF in 2014 Warranted P/E in 2014 O $3,628 million O $363 million O $3,833 million 2012 $317 197 135 O $161 million 8.2% 4.0% What is an appropriate estimate of Scandinavian Furniture's terminal value as of the end of 2014, using the perpetual-growth equation as your estimate? 19.4 18.7 2013 $339 210 144 2014 $363 225 155
The management of Que-B Bhd is targeting to accumulate funds to finance its projects. The strategy is to keep several portfolios with the specific intention to obtain the gains if the value of the investment appreciates in the future. Security portfolios I and II are held at the end of Que-B Bhd’s first year of operations and are shown in the following table: Year-End Security Cost Market Value I RM36,000 RM39,000 II RM17,000 RM20,000 a) Provide the necessary journal entries to record the adjustments of the securities portfolios to market value.
JenBritt Incorporated had a free cash flow (FCF) of $76 million in 2019. The firm projects FCF of $255 million in 2020 and $640 million in 2021. FCF is expected to grow at a constant rate of 4% in 2022 and thereafter. The weighted average cost of capital is 10%. What is the current (i.e., beginning of 2020) value of operations? Do not round intermediate calculations. Enter your answer in millions. For example, an answer of $1 million should be entered as 1, not 1,000,000. Round your answer to two decimal places. $ million
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You are considering a geographic expansion into the European market for Canopy Pharmaceuticals. Below are the incremental cash flows for the Canopy project for you to use in your analysis. Assume Canopy's marginal tax rate is 35%, their cost of capital is 15.7 % and an expected growth rate of 5% after 2003. 1998 1999 2000 2001 2002 2003 Net Sales 8,500 15,000 35,500 46,000 52,000 60,000 Cost of Sales 3,100 5,500 13,900 18,000 20,000 24,000 Depreciation 100 100 100 100 100 100 SG&A 3,500 5,410 6,400 5,300 7,200 7,800 R&D 1,100 2,800 4,100 5,400 6,500 7,000 EBIT 700 1,190 11,000 17,200 18,200 21,100 Taxes (35%) 245 417 3,850 6,020 6,370 7,385 Net Income 455 774 7,150 11,180 11,830 13,715 Depreciation 100 100 100 100 100 100 Operating Cash Flows 555 874 7,250 11,280 11,930 13,815 CAPEX (906)…
Financial statements Net operating revenues Operating expenses Operating income Non-operating items: Interest expense Other Net income Total assets Total shareholders' equity S 2020 33.8 28.9 4.9 (1.2) (0.6) 3.1 $ $ 200.0 78.0 - X

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