Lauryn's Doll Company had EBIT last year of $41 million, which is net of a depreciation expense of $4.1 million. In addition, Lauryn's made $4 million in capital expenditures and increased net working capital by $2.0 million. Assume that Lauryn's has a reported equity beta of 1.4, a debt-to-equity ratio of 0.4, and a tax rate of 21 percent. What is Lauryn's FCF for the year? Note: Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places. FCF million

Lauryn's Doll Company had EBIT last year of $41 million, which is net of a depreciation expense of $4.1 million. In addition, Lauryn's made $4 million in capital expenditures and increased net working capital by $2.0 million. Assume that Lauryn's has a reported equity beta of 1.4, a debt-to-equity ratio of 0.4, and a tax rate of 21 percent. What is Lauryn's FCF for the year? Note: Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places. FCF million

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter6: Accounting For Financial Management

Section: Chapter Questions

Problem 11P: The Berndt Corporation expects to have sales of 12 million. Costs other than depreciation are...

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The Berndt Corporation expects to have sales of 12 million. Costs other than depreciation are expected to be 75% of sales, and depreciation is expected to be 1.5 million. All sales revenues will be collected in cash, and costs other than depreciation must be paid for during the year. Berndts federal-plus-state tax rate is 40%. Berndt has no debt. a. Set up an income statement. What is Berndts expected net income? Its expected net cash flow? b. Suppose Congress changed the tax laws so that Berndts depreciation expenses doubled. No changes in operations occurred. What would happen to reported profit and to net cash flow? c. Now suppose that Congress changed the tax laws such that, instead of doubling Berndts depreciation, it was reduced by 50%. How would profit and net cash flow be affected? d. If this were your company, would you prefer Congress to cause your depreciation expense to be doubled or halved? Why?
Lauryn’s Doll Co. had EBIT last year of $52 million, which is net of a depreciation expense of $5.2 million. In addition, Lauryn’s made $5.75 million in capital expenditures and increased net working capital by $3.2 million. Assume that Lauryn’s has a reported equity beta of 1.7, a debt-to-equity ratio of .7, and a tax rate of 21 percent. What is Lauryn’s FCF for the year?(Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.)
During the current year, Kite Corporation had average total assets are $500,000, total asset turnover of 1.10, and a net profit margin percentage of 12.0%. Kite's interest expense equals 5.0% of its total liabilities and its income tax rate is 21.0%. For purposes of computing its operating income (or EBIT), Kite's contribution margin ratio is 25%. If Kite's return on equity is 6.6%, what is Kite's equity multiplier? Round to two decimal points. 0.50 O 0.67 O 1.50 O 2.00 O None of the above
Last year, Roswin Robotics have $5,000,000.00 in operating income (EBIT). Its depreciation expense was $1,000,000.00, its interest expense was $1,000,000.00 and its corporate tax rate was 40%. At year-end, it had $14,000,000.00 in current assets, $3,000,000.00 in accounts payable, $1,000,000.00 in accruals, $2,000,000.00 in notes payable and $15,000,000.00 in net PPE. Roswin had no other current liabilities. Assume that Roswin's only non-cash item was depreciation. Compute for the following: 1. Net Income 2. Net Operating Working Capital (NOWC) 3. Net Working Capital (NWC)
Last year Rattner Robotics had $5 million in operatingincome (EBIT). Its depreciation expense was $1 million, its interest expense was $1 million,and its corporate tax rate was 40%. At year-end, it had $14 million in operating currentassets, $3 million in accounts payable, $1 million in accruals, $2 million in notes payable,and $15 million in net plant and equipment. Assume Rattner has no excess cash. Rattneruses only debt and common equity to fund its operations. (In other words, Rattner has nopreferred stock on its balance sheet.) Rattner had no other current liabilities. Assume thatRattner’s only noncash item was depreciation.a. What was the company’s net income?b. What was its net operating working capital (NOWC)?c. What was its net working capital (NWC)?d. Rattner had $12 million in net plant and equipment the prior year. Its net operatingworking capital has remained constant over time. What is the company’s free cashflow (FCF) for the year that just ended?e. Rattner has 500,000…
If for the most recent year, a firm's RNOA is 17.5%, its sales were $2,000,000, its asset turnover is 2.0, its operating liability (OL) balance is $250,000, and its short-term borrowing rate (STBC) is 2.5% after tax, what is its ROOA?
Patterson Brothers recently reported an EBITDA of $7.5 million andnet income of $2.1 million. It had $2.0 million of interest expense, and its corporate tax ratewas 30%. What was its charge for depreciation and amortization?
Barnes' Brothers has the following data for the year ending 12/31/12: Net income = $550; Net operating profit after taxes (NOPAT) = $650; Total assets = $2,700; Short-term investments = $100; Stockholders' equity = $2,000; Total debt = $750; and Total operating capital = $2,300. Barnes' weighted average cost of capital is 11%. What is its economic value added (EVA)? Group of answer choices $357.30 $317.60 $397.00 $436.70 $277.90
Barnes' Brothers has the following data for the year ending 12/31/12: Net income = $500; Net operating profit after taxes (NOPAT) = $850; Total assets = $3,000; Short-term investments = $100; Stockholders' equity = $2,000; Total debt = $700; and Total operating capital = $3,000. Barnes' weighted average cost of capital is 17.1%. What is its economic value added (EVA)? (Round your answer to 2 decimal places.)
Talbot Enterprises recently reported an EBITDA of $8 million and net incomeof $2.4 million. It had $2.0 million of interest expense, and its corporate taxrate was 40%. What was its charge for depreciation and amortization?
Kristyle Company's net income last year was P40,000 and its interest expense was P8,000. Total assets at the beginning of the year were P260,000 and total assets at the end of the year were P315,000. Kristyle Company's income tax rate was 35 percent. Kristyle's return on total assets for the year was closest to * Choices: 7.9%. 16.7%. 14.5%. 15.7%.
Last year, Sharpe Radios had net operating profit after-taxes (NOPAT) of $7.8 million. Its EBITDA was $15.5 million and net income amounted to $3.8 million. During the year, Sharpe Radios made $5.5 million in net capital expenditures (that is, capital expenditures net of depreciation). Finally, Sharpe Radios’ finance staff has concluded that the firm’s total after-tax capital costs were $5.9 million and its tax rate was 40 percent.a. What is Sharpe Radios’ depreciation and amortization expense?b. What is Sharpe Radios’ interest expense?c. What is Sharpe Radios’ free cash flow?d. What is Sharpe Radios’ EVA?