Revenue is $100,000, COGS is $40,000, Sales, General, and Administrative expense (SGA) is $15,000, depreciation expense is $15,000. Assume no interest expense and a tax rate of 35%. What is the operating cash flow (OCF)? Multiple Choice $19,500 $25,200 $45,000 $34,500
Q: egat Light sold 190.000 shares in an initial public offering. The underwriter's explicit fees were…
A: Firstly we need to calculate Underpricing Loss:-Underpricing Loss= (Market price - offering price)*…
Q: has invested in an annuity policy fund which requires him to place an annual deposit of $10,000 for…
A: Future value of money includes the amount of deposits done and amount of interest accumulated over…
Q: A firm had after-tax Income last year of $1.0 million. Its depreciation expenses were $0.2 million,…
A: After-tax income = $1.0 million Depreciation = $0.2 million Total cash flow = $1.0 million '
Q: QUESTION ( if $25,000 is borrowed with an interest of 8.0% compounded annually, what is the total…
A: Compound interest is the interest calculated on both the initial principal and the accumulated…
Q: Assume Highline Company has just paid an annual dividend of $0.92. Analysts are predicting an 11.8%…
A: Stock price under dividend discount model will be the present value of all dividends and present…
Q: Computech Corporation is expanding rapidly and currently needs to retain all of its earnings: hence,…
A: The dividend will be distributed by the company in case if positive net income is earned. This will…
Q: the lottery commission wants to be able to withdraw $400,000 at the beginning of each year for…
A: An annuity refers to a series of cash flows that occur on a periodic basis. The cash flows are…
Q: We want to have $100,000 in 10 years for a Wedding. If we can make an investment paying 6%…
A: Firstly calculate the periodic interest rate and total number of periods required to find in the…
Q: What is the depreciation charge of an equipment purchased six (6) years ago for $200,000, and a…
A: Variables in the question:Cost of equipment=$200,000Life of equipment=10 years
Q: Surf & Turf Hotels is a mature business, although it pays no cash dividends. Next year's earnings…
A: Dividend is the portion of the profit distributed to the shareholders when the company performs…
Q: Assume the following relationships for the Caulder Corp.: 1.8x Sales/Total assets Return on assets…
A: The profit margin can be expressed in percentage which depicts the profit percentage on the sales of…
Q: A stock's returns have the following distribution: Demand for the Company's Products Probability of…
A: Expected Return:When future returns are valued and weighted according to the likelihood that they…
Q: The marginal tax rate is 20%. What are the incremental free cash flows associated with the new…
A: To calculate the incremental free cash flows associated with the new machine in year 2, we need to…
Q: Suppose you purchased 4,700 shares at the beginning of January (the beginning of Quarter 1) at the…
A: “Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…
Q: You are considering an investment project with the cash flows of -300 (the initial cash flow), 800…
A: MIRR means Modified Internal Rate of Return .It is calculated as follows:-MIRR = - 1where,FV =…
Q: On January 1, 2020 Lance Co. issued five-year bonds with a face value of $700,000 and a stated…
A: Solution:-Bond price means the price at which a bond should tarde in the market. It is the summation…
Q: Having heard about IPO underpricing, I put in an order to my broker for 1,000 shares of every IPO he…
A: The "initial return" means the profit or return that investors might expect to get soon after taking…
Q: A portfolio is equally invested in 4 assets: Alphabet (Google) stock with a beta of 1.05, Macy's…
A: We are given the following data -StockBetaAlphabet1.05Macy1.51American Airlines2.04Risk-free…
Q: The expected average rate of return for a proposed investment of $4,860,000 in a fixed asset, using…
A: One financial statistic that firms use to assess the profitability of an investment or project is…
Q: A lease agreement that qualifies as a finance lease calls for annual lease payments of $40,000 over…
A: Paying recurring fees to utilize an asset without really owning it is known as leasing & the…
Q: Microhard has issued a bond with the following characteristics: Par: $1,000 Time to maturity: 18…
A: Bond price will be the aggregate of present value of all coupon payments and present value of face…
Q: You are a consultant to a large manufacturing corporation considering a project with the following…
A: NPV is also known as Net Present Value.. It is a capital budgeting technique which helps in decision…
Q: A convertible bond pays interest annually at a coupon rate of 5% on a par value of $1,000. The bond…
A: Floor value is minimum price of bond which is the present value of coupon payment plus present value…
Q: A $5,000 bond with a coupon rate of 6.5% paid semiannually has two years to maturity and a yield to…
A: Compound = Semiannually = 2Face Value = fv = $5000Coupon Rate = 6.5 / 2 = 3.25%Time = t = 2 * 2 =…
Q: Find the original price for a kitchen table and chairs selling for $799.99 at 40% off. Round to the…
A: The formula used to find the original price after a discount is applied is:Where:Original Price:…
Q: You find the following Treasury bond quotes. lo calculate the number of years until maturity, assume…
A: A bond is a kind of debt security issued by the government and private companies to the public for…
Q: Kaye's Kitchenware has a market/book ratio equal to 1. Its stock price is $14 per share and it has…
A: The debt-to-capital ratio refers to the measurement of the leverage associated with the company and…
Q: A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a…
A: FundExpected returnStandard deviationStock Fund 16%45%Bond Fund7%39%correlation0.0385
Q: Time to grow: Zephyr Sales Company has currently reported sales of $1.125 million. If the company…
A: We need to use the following financial keys in financial calculator to calculate number of years to…
Q: Suppose that at age 25, you decide to save for retirement by depositing $95 at the end of every…
A: IRA is an individual retirement plan and contributions made are tax free and this is quite necessary…
Q: hat is the duration of a constant-dividend preferred stock at issuance, when its market rate of…
A: Duration of bond or preferred stock is weighted period required to recover all cash flow from the…
Q: Consider the following information: Expected Return Portfolio Risk-free Market A Expected return 10%…
A: CAPM refers to the relationship between the expected return of the portfolio and the risk that the…
Q: vill retire in 40 years. They plan to spend $50,000 of their sav ithdraw coming at the end of the…
A: Present value refers to the worth of the amount in current times that is expected to be received in…
Q: An investment offer nominal interest rate of 6% compounded monthly. Monthly interest is computed…
A: Future value of money is the amount of deposit done and amount of compounded interest accumulated…
Q: what will be the balance of her account after 30 more years assuming the same 8% interest
A: PRESENT VALUE:The concept of present value (PV) is a fundamental principle in finance, used to…
Q: . Calculate the annual rate of return.
A: The annual rate of return is a metric for assessing an investment's profitability over a given time…
Q: The following table presents sales forecasts for Golden Gelt Giftware. The unit price is $40. The…
A: NPV is also known as Net Present Value. It is a capital budgeting technique which helps in decision…
Q: For each of the investments below, calculate the rate of return earned over the period. Investment…
A: Rate of return shows the amount of profit/loss earned on investment during period and it may be in…
Q: Your boss hands you the following information for a pair of mutually exclusive projects and asks for…
A: NPV is also known as Net Present Value.. It is a capital budgeting technique which helps in decision…
Q: 4) The table below shows the interest rates available from investing in risk-free U.S. Treasury…
A: Annuity=$4,000" data-mce-style="display: inline-block; line-height: 0; text-indent: 0px; text-align:…
Q: Your company has just taken out a 1-year installment loan for $72,500 at a nominal rate of 11.0% but…
A: First we need to use loan amortization formula below to calculate monthly payment. where P=Loann…
Q: Two alternatives are being considered: First cost Uniform annual benefit Useful life, in years A…
A: Incremental cash flows consist of initial incremental cash outflow, incremental annual benefit and…
Q: You are considering acquiring a common share of Sahali Shopping Center Corporation that you would…
A: Present Value is current price of future value which will be received in near future. This future…
Q: Sheridan Corp, will pay dividends of $5.00, $6.25, $4.75, and $3.00 in the next four years.…
A: Dividend in 1st year = $5.00Dividend in 2nd year = $6.25Dividend in 3rd year = $4.75Dividend in 4th…
Q: Scholastic Co. is evaluating a machine with an initial cost of $450,000 and a five-year life that…
A: Net Present Value is that amount which is calculated with the help of future cash inflow and…
Q: Using annual, semiannual, and quarterly compounding periods, (1) calculate the future value if…
A: The worth of the amount is expected by an investor to be received on some future date for investing…
Q: Sheep Ranch Golf Academy is evaluating new golf practice equipment. The "Dimple Max" equipment costs…
A: Equivalent annual cost refers to the cost which is incurred for owning, operating, and the…
Q: Better Mousetraps has developed a new trap. It can go into production for an initial investment in…
A: NPV is also known as Net Present Value.. It is a capital budgeting technique which helps in decision…
Q: A 20-year, zero-coupon bond was recently being quoted at 23.629% of par. Find the current yield and…
A: Here,ParticularsValuesYears till maturity20.00Percentage price 23.63%Face value (FV) $ 1,000.00Yield…
Q: Which is more valuable, receiving $775 today or receiving $885 in 2.5 years if interest rates are…
A: Present value refers to the current worth of future cash flows, discounted at a specific rate. It is…
Only typing answer
Please explain step by step without table and graph thankyou.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- Determine the cash fixed costs which are used when calculating EBDAT:Administrative expenses = $100, 000; Rent expenses = $70,000;Depreciation expenses = $50,000; and Interest expenses = $20,000Determine the cash fixed costs which are used when calculating EBDAT: Administrative expenses = $100,000; Rent expenses expenses = $50,000; and Interest expenses = = $70,000; Depreciation $20,000.Using the following information, and a tax rate of 35%, calculate the yearly cash flow: Sales $2,100 Variable costs $1,200 Fixed costs $200 Depreciation $100
- Use the following to determine FCF (Free Cash Flow) for the current year. Assume an effective tax rate of 25%: Revenue COGS (Cost of Goods Sold) Gross Profit Wages Expense Rent and Other Occupancy Expense Depreciation Expense Operating Income Current Assets Accounts Receivable Inventory Total Current Assets Gross Fixed Assets (at historical cost) less: Accumulated Depreciation Net Fixed Assets Total Assets Current Year 100,000 67,000 11,500 15,000 1,000 8,500 5,500 50,000 30,000 20,000 Prior Year 4,200 950 8,200 6,000 46,000 29,000 17,000 Current Liabilities Accounts Payable Wages Payable Enter your answer as a monetary amount rounded to four decimal places, but without the currency symbol. For example, if your answer is $90.1234, enter 90.1234. Show a decrease as a negative figure. Type your answer... 4,500 900ok ences Mc Graw Hill Graff, Incorporated, has sales of $50,000, costs of $23,000, depreciation expense of $2,250, and interest expense of $2,000. If the tax rate is 23 percent, what is the operating cash flow, or OCF? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) Operating cash flow 2 #3 3 89 $ 4 000 000 % 5 8Calculating OCF (LO3) Fergus Inc. has sales of $39,500, costs of $18,400, depreciation expense of $1,900, and interest expense of $1,400. If the tax rate is 35%, what is the operating cash flow, or OCF?
- Calculate: Profits before and after taxes Change in cash EBITD Coverage ratio REVENUE 400,000 OPERATING COSTS 250,000 DEPRECIATION 25,000 INTEREST 20,000 PROFITS TAX 20%Calculate the following values according to the table given: net cash flow, interest 18% discount, PV of revenues from 18% , PV of expenses from 18%, NPV 18% , intereset 20% discount , NPV 20% Calculate each solution of the empty places in the table one by one. Calculate on paper. Do not calculate on excel program. (Use 18% and 20% values given for tax, interest.)A machine with a cost of $146,000, accumulated depreciation of $93,000, and current year depreciation expense of $21,000 is sold for $46,400 cash. The amount that should be reported as a source of cash under cash flows from investing activities is: Multiple Choice $46,600. $6,600. $21,000.
- Required information Consider the cash flows shown. Year Revenues, $ Costs, $ 1 2 O 25,000 19,000 -6,000 -30,000 -7,000 NOTE: This is a multi-part question. Once an answer is submitted, you will be unable to return to this part. The spreadsheet function is (Click to select) Determine the external rate of return using the MIRR method if ir = 18% per year and i = 10% per year. Verify your answer with the spreadsheet function. The external rate of return is 3 4,000 -4,500 % per year.Given the cashflow tabulated below. What is the payback period using the discounted method at MARR=15%? Initial EOY Revenues Expenses investment $120,000 $35,000 $15,000 $50,000 $10,000 $75,000 $5,00o 4 $65,000 $40,000 0. $15,000 О a. year 4 O b. year 2 Ос уear 1 O d. year 3 O e. year 5 O f. year 6Amalgamated Industries has Sales of 3,500, COGS of 1,500, and EBIT of 600. If Depreciation is 400, Interest Expense is 200, and Taxes are 50, what is their Operating Cash Flow? Question 8 options: $1,750 $2,350 $800 $950 $750