Sales Income Statement Costs, including interest Net income $ 6,800 4,900 $ 1,900 Balance Sheet, Year-End 2021 Net assets $ 5,916 2020 $5,500 Debt Equity 2021 $ 2,516 3,400 2020 $ 2,433 3,067 Total $ 5,916 $5,500 Total $ 5,916 $ 5,500 a. If the payout ratio is set at 60% and no external debt or equity Archimedes? b. If the payout ratio is set at 60% and the firm maintains a fixed growth rate for Archimedes? Note: For all requirements, do not round intermediate calculations a. Maximum possible growth rate Maximum possible arouth roto %

Sales Income Statement Costs, including interest Net income $ 6,800 4,900 $ 1,900 Balance Sheet, Year-End 2021 Net assets $ 5,916 2020 $5,500 Debt Equity 2021 $ 2,516 3,400 2020 $ 2,433 3,067 Total $ 5,916 $5,500 Total $ 5,916 $ 5,500 a. If the payout ratio is set at 60% and no external debt or equity Archimedes? b. If the payout ratio is set at 60% and the firm maintains a fixed growth rate for Archimedes? Note: For all requirements, do not round intermediate calculations a. Maximum possible growth rate Maximum possible arouth roto %

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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Estimating Share Value Using the DCF Model Following are forecasts of sales, net operating profit after tax (NOPAT), and net operating assets (NOA) as of December 31, 2018, for Humana. Note: Complete the entire question in Excel and format each answer to two decimal places. Then enter the answers into the provided spaces below with two decimal places. Reported Forecast Horizon Period Terminal $ millions Sales NOPAT NOA 2021 2022 2020 2018 2019 $57,472 $58,326 $59,192 $60,072 $60,964 3,179 3,218 3,140 3,052 3,102 4,844 4,657 4,718 4,781 4,592 Period $61,568 3,244 4,887 Answer the following requirements with the following assumptions: Assumptions Terminal period growth rate 1% Discount rate (WACC) 7.8% Common shares outstanding 135.60 million Net nonoperating obligations (NNO) $(5,569) million Noncontrolling interest $0 million NNO is negative because Humana's nonoperating assets exceed its nonoperating liabilities. (a) Estimate the value of a share of Humana's common stock using the…
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Assume U.S. GAAP (generally accepted accounting principles) applies unless otherwise noted. An analyst is forecasting EPS for a company. She prepares the following common sized data from its recent annual report and estimates sales for 2009. Sales $ millions Sales as % of sales Cost of goods sold Operating Expenses Interest expense Restructuring expense 2022 forecast 2,250.0 Pre-tax margin Taxes (35%) Net Income 2021 actual 2,150.0 100.00% 45.00% 40.00% 4.02% 7.20% 3.78% 1.32% 2.46% The capital structure of the company has not changed, and the company has no short term interest bearing debt outstanding. The projected net income (in $ millions) for 2022 is closest to: 45.00% 40.00% 3.72% 2020 actual 1,990.0 100.00% 11.28% 3.95% 7.33%
Sales Depreciation COGS Interest Cash Accts Receivables Notes Payable L ong-term debt Net fixed assets Accounts Payable Inventory Dividend payout Tax rate 2020 21. What is the ROE for 2021? $5,300 $5,900 750 850 2400 180 200 200 800 1500 3000 250 700 2021 2900 196 500 22. What is the Inventory period in 2021? 400 550 1950 3500 400 900 30% 35% 30% 20. What is the cash flow from operating activities?
Total annual revenue Total revenue growth rate Terminal revenue growth rate Net operating profit margin (NOPM) Net operating asset turnover (NOAT) Projected total revenue for the following year would be: Select one: O O O $2,850,649 5.0% 2% 8.2% 3.42 a. $2,993,181 b. $2,948,141 c. None of these are correct d. $2,907,662
(Profitability Ratio)What is the Net Profit Margin Ratio in 2020?
2021 2020 2019 2018 2017 Sales $703,787 $ 463,018 $370,414 $256,342 $191,300 Cost of goods sold 361,331 237,839 192,311 132,684 97,563 Accounts receivable 33,993 27,133 25,299 14,996 13,066 Compute trend percents for the above accounts, using 2017 as the base year. For each of the three accounts, state whether the situation as revealed by the trend percents appears to be favorable or unfavorable.
(Profitability Ratio)What is the Return on Investment Ratio in 2019?
Abbreviated financial statements for Archimedes Levers are shown in the table below. Assume sales and expenses increase by 14% in 2022 and all assets and liabilities increase correspondingly. Income Statement Sales Costs, including interest Net income Net assets Total $ 4,800 3,900 $ 900 Balance Sheet, Year-End 2021 2020 $ 3,936 $3,500 $ 3,936 $3,500 Debt Equity Total 2021 $ 1,536 2,400 $ 3,936 2020 $1,433 2,067 $3,500 a. If the payout ratio is set at 50% and no external debt or equity is to be issued, what is the maximum possible growth rate for Archimedes? b. If the payout ratio is set at 50% and the firm aintains a fixed debt ratio but issues no equity, what is the maximum possible growth rate for Archimedes? Note: For all requirements, do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.
FAREnterprises Inc. Income Statements 2016 Leverage Calculations Calculate; The DOL 2019 2020 The DFL The DCL With both the interval method Years 2019 and 2020 and the Point method Years 2018, 2019, and 2020 Total Reverue Cost of Goods Sold 71,887 74,178 75, 387 55,a53 57.117 17,061 Gross Profit 16,534 17,339 Variable G&A 1,884 1,98 2,019 Fixed G&A 7,000 7,000 7,000 2020 1,500 650 Fined Depreciation 1500 1,500 Point Method 2018 2019 Fied Hent 650 650 DAL Operating Expenses 11,034 11.169 DOL 11,148 5,500 2,000 EBIT 5,913 6,170 DCL interest Espense 2,000 2,000 famings llefore Taxes 3,500 3,913 4,170 2020 1,668 2,500 Interval Method 2019 1,400 2,100 Income Tax Expense 1,565 2.348 DFL Net income DOL Tax late 40% DCL Share Data 10000 10000 10000 Basic Shares 0.21 0.23 0.25 Basic EPS
Pro forma income statement The marketing department of Metroline Manufacturing estimates that its sales in 2020 will be $1.53 million. Interest expense is expected to remain unchanged at $35,000, and the firm plans to pay $65,000 in cash dividends during 2020. Metroline Manufacturing's income statement for the year ended December 31, 2019, is given, along with a breakdown of the firm's cost of goods sold and operating expenses into their fixed and variable components. a. Use the percent-of-sales method to prepare a pro forma income statement for the year ended December 31, 2020. b. Use fixed and variable cost data to develop a pro forma income statement for the year ended December 31, 2020. c. Compare and contrast the statements developed in parts a. and b. Which statement probably provides the better estimate of 2020 income? Explain why. a. Use the percent-of-sales method to prepare a pro forma income statement for the year ended December 31, 2020. Complete the pro forma income…
(Profitability Ratio)What is the Earnings Per Share in 2020?

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