The cash flow reported for the current year for MindRoot Inc. is $177,000, but FCF is expected to decline at a constant rate of 2%. If the company's weighted average cost of capital is 9%, what is the present value of its operations? O $2,528,571.43 O $1,609,090.91 O $1,576,909.09 O $1,641,272.73 O $2,579,142.86
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- Calculate the Operating Cash for this Firm:A new firm, GASFORALL, Co expects to generate Sales of $117,700. GASFORALL has variable costs of $74,800, and fixed costs of $15,300. The per-year depreciation is $3,850 and the tax rate is 35 percent. Given this info: What is the annual operating cash flow?Creative Analysis, Inc. is currently operating at maximum capacity. Assume that all costs and net working capital vary directly with sales. The dividend payout ratio will remain constant. How much is the External Financing needed (EFN) if sales are projected to increase by 10%? Income Statement end of last year: Sales $8,500 Costs $7,960 Net Income $540 Dividends paid = $324 Balance Sheet as of end of last year: Cash Accounts Receivables Inventory Net Fixed Assets Total assets -$25.1 $156.1 O $296.5 -$67.6 O $274.9 Assets $1,600 $975 $2,425 $2,200 $7,200 Accounts Payable Long-Term Debt Common Stock Retained Earnings Total Liabilities & Equity Liabilities & Equity $2,075 425 $3000 $1,700 $7,200Suppose that Wall-E Corp. currently has the balance sheet shown below, and that sales for the year just ended were $7.4 million. The firm also has a profit margin of 20 percent, a retention ratio of 25 percent, and expects sales of $9.4 million next year. Fixed assets are currently fully utilized, and the nature of Wall-E's fixed assets is such that they must be added in $1 million increments. Assets Current $2,294,000 Current liabilities Long-term debt Equity assets Fixed assets 5,402,000 Liabilities and Equity Total assets $7,696,000 Total liabilities and equity $2,368,000 1,700,000 3,628,000 $7,696,000 If current assets and current liabilities are expected to grow with sales, what amount of additional funds will Wall-E need from external sources to fund the expected growth? (Enter your answer in dollars not in millions.) Additional funds needed
- Use this information for Mason Corporation to answer the question that follow. Mason Corporation had $1,030,000 in invested assets, sales of $1,275,000, income from operations amounting to $227,000, and a desired minimum return of 12%. Round the percentage to one decimal place. The profit margin for Mason Corporation is Oa. 22.0% Оb. 17.8% Oc. 12.0% Od. 80.8%Mako Industries is considering changes in its working capital policies to improve its cash flow cycle. Mako's sales last year were $6.0 million (all on credit), and its net profit margin was 8%. Its inventory turnover was 7.0 times during the year, and its DSO was 45 days. Its annual cost of goods sold was $4.20 million. The firm had fixed assets totaling $600,000. Mako's payables deferral period is 30 days. Suppose Mako's managers believe the annual inventory turnover can be raised to 8 times without affecting sale or profit margins. What would Mako's ROA have been if the inventory turnover had been 8 for the year? O 25.74% O 21.03% O 24.33% O 26.57%Ledesma Corp. developed a product that will provide zero cash flow at the end of Years 1 and 2, and a cash inflow of $250,000 per year forever, beginning at the end of Year 3. At a discount rate of 18%, what is the present value of the product? $1,288,889 $4845,321 $ 543,568 ion $997, 478 $1.177.024
- Strickler Technology is considering changes in its working capital policiesto improve its cash flow cycle. Strickler’s sales last year were $3,250,000(all on credit), and its net profit margin was 7%. Its inventory turnover was6.0 times during the year, and its DSO was 41 days. Its annual cost of goodssold was $1,800,000. The firm had fixed assets totaling $535,000. Strickler’spayables deferral period is 45 days.a. Calculate Strickler’s cash conversion cycle.b. Assuming Strickler holds negligible amounts of cash and marketablesecurities, calculate its total assets turnover and ROA.c. Suppose Strickler’s managers believe the annual inventory turnover canbe raised to 9 times without affecting sale or profit margins. What wouldStrickler’s cash conversion cycle, total assets turnover, and ROA havebeen if the inventory turnover had been 9 for the year?Strickler Technology is considering changes in its working capital policies to improve its cash flow cycle. Strickler’s sales last year were $3,250,000 (all on credit), and its net profit margin was 7%. Its inventory turnover was 6.0 times during the year, and its DSO was 41 days. Its annual cost of goods sold was $1,800,000. The firm had fixed assets totaling $535,000. Strickler’s payables deferral period is 45 days. a. Calculate Strickler’s cash conversion cycle. b. Assuming Strickler holds negligible amounts of cash and marketable securities, calculate its total assets turnover and ROA. c. Suppose Strickler’s managers believe the annual inventory turnover can be raised to 9 times without affecting sales. What would Strickler’s cash conversion cycle, total assets turnover, and ROA have been if the inventory turnover had been 9 for the year?Strickler Technology is considering changes in its working capital policies to improve its cash flow cycle. Strickler's sales last year were $3,250,000 (all on credit), and its net profit margin was 7%. Its inventory turnover was 6.0 times during the year, and its DSO was 41 days. Its annual cost of goods sold was $1,800,000. The firm had fixed assets totaling $535,000. Strickler's payables deferral period is 45 days. (16-12) Working Capital Cash Flow Cycle a. Calculate Strickler's cash conversion cycle. b. Assuming Strickler holds negligible amounts of cash and marketable securities, calculate its total assets turnover and ROA. C. Suppose Strickler's managers believe the annual inventory turnover can be raised to 9 times without affecting sale or profit margins. What would Strickler's cash conversion cycle, total assets turnover, and ROA have been if the inventory turnove had been 9 for the year?
- Strickler Technology is considering changes in its working capital policies to improve its cash flow cycle. Strickler’s sales last year were $3,250,000 (all on credit), and its net profit margin was 7%. Its inventory turnover was 6.0 times during the year, and its DSO was 41 days. Its annual cost of goods sold was $1,800,000. The firm had fixed assets totaling $535,000. Strickler’s payables deferral period is 45 days. Calculate Strickler’s cash conversion cycle. Assuming Strickler holds negligible amounts of cash and marketable securities, calculate its total assets turnover and ROA. Suppose Strickler’s managers believe the annual inventory turnover can be raised to 9 times without affecting sale or profit margins. What would Strickler’s cash conversion cycle, total assets turnover, and ROA have been if the inventory turnover had been 9 for the year?Ryan Enterprises forecasts the free cash flows (in millions) shown below. Assume the firm has zero non- operating assets. The weighted average cost of capital is 13.0%, and the FCFs are expected to continue growing at a 5.0% rate after Year 3. What is the firm's total corporate value (in millions)? Do not round intermediate calculations. 2 Year 1 FCF -$15.00 $10.00 $60.00 $721.58 $459.71 $593.56 $634.29 $581.92 3Last year Wei Guan Inc. had $275 million of sales, and it had $270 million of fixed assets that were used at 65% of capacity. In millions, by how much could Wei Guan's sales increase before it is required to increase its fixed assets? Question options: $137.71 $159.92 $115.50 $155.48 $148.08
