Requirement 8. The Lexington Company wants to expand and is considering options for raising additional cash. The company estimates net income before the expansion of $ 240 comma 000 in 2025 and that the expansion will provide additional operating income of $ 70 comma 000 in 2025. The company intends to sell the shares of treasury stock, so use issued shares for the analysis rather than current shares outstanding. Compare these options,

Please answer option A and B

Free cash flow FCF Year (t) 2020 2021 2022 2023 $710,000 $850,000 $950,000 $1,090,000 Other data Growth rate of FCF, beyond 2023 to infinity = 6% Weighted average cost of capital = 9% Market value of all debt = $6,030,000 Market value of preferred stock = $2,410,000 Number of shares of common stock to be issued = 1,100,000

Quantitative Problem 1: Assume today is December 31, 2019. Barrington Industries expects that its 2020 after-tax operating income [EBIT(1 – T)] will be $430 million and its 2020 depreciation expense will be $65 million. Barrington's 2020 gross capital expenditures are expected to be $110 million and the change in its net operating working capital for 2020 will be $30 million. The firm's free cash flow is expected to grow at a constant rate of 4.5% annually. Assume that its free cash flow occurs at the end of each year. The firm's weighted average cost of capital is 8.1%; the market value of the company's debt is $2.95 billion; and the company has 170 million shares of common stock outstanding. The firm has no preferred stock on its balance sheet and has no plans to use it for future capital budgeting projects. Also, the firm has zero non-operating assets. Using the corporate valuation model, what should be the company's stock price today (December 31, 2019)? Do not round intermediate…

10 Net income, currents assets and current liabilities for 2020 are expected to vary with sales. The projected sales in 2020 is ₱210M. The company plans to pay ₱0.05 cash dividends per share in 2020. What is the projected current liabilities for 2020?

Use the same CMO as in the previous question and suppose that in month 10, the beginning balance on tranche A is $2,733,990.91 and the beginning balance on tranche B is X$3,000,000. How much cash flow do investors in tranche A receive in month 10? 4 Selected Answer: 191,554 BE O ENG 40 11:36 PM 11/15/2023

Quantitative Problem 1: Assume today is December 31, 2019. Barrington Industries expects that its 2020 after-tax operating income [EBIT(1 - T)] will be $450 million and its 2020 depreciation expense will be $70 million. Barrington's 2020 gross capital expenditures are expected to be $100 million and the change in its net operating working capital for 2020 will be $30 million. The firm's free cash flow is expected to grow at a constant rate of 6% annually. Assume that its free cash flow occurs at the end of each year. The firm's weighted average cost of capital is 8.9%; the market value of the company's debt is $2.6 billion; and the company has 170 million shares of common stock outstanding. The firm has no preferred stock on its balance sheet and has no plans to use it for future capital budgeting projects. Also, the firm has zero non-operating assets. Using the corporate valuation model, what should be the company's stock price today (December 31, 2019)? Do not round intermediate…

Suppose C Manufacturings sales increase 20% over the next year.  Assuming all asset accounts change proportionately to sales, there is no change in dividend or tax rate and that new growth is financed by equity, what will company be paying out in dividends for 2021?   1. $14,400   2. $12,960   3. $2,160   4. $3,600   5. $31,250

Hello tutor please provide answer the accounting question

Question1: Cybernauts, Ltd., is a new firm that wishes to finance an expansion program and determine its capital structure. It can issue 20 percent debt or 18 percent preferred stock. The total capitalization of the firm will be $6 million, and common stock can be sold at $25 per share. The company is expected to have a 50 percent tax rate. Four possible capital structures being considered are as follows: Plan Debt Preferred Common 1 20% 20% 60% 2 35 25 40 3 50 0 50 4 40 25 25   What would be the earnings per share for the four alternatives if earnings before interest and taxes are at $1.5 million?