The following information was obtained from XYZ Corporation: 2023 EBIT $200,000 Interest $50,000 Depreciation $100,000 Dividends $55,000 2022 2023 Long-term debt $600,000 $600,000 Capital spending was $150,000 in 2023. The net new equity issuance was $50,000 in 2023. The applicable tax rate was 30% in year 2023. Calculate the change in net working capital for 2023. Show your calculation.
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The following information was obtained from XYZ Corporation:
2023
EBIT $200,000
Interest $50,000
Depreciation $100,000
Dividends $55,000
2022 2023
Long-term debt $600,000 $600,000
Capital spending was $150,000 in 2023. The net new equity issuance was $50,000 in 2023. The
applicable tax rate was 30% in year 2023.
Calculate the change in net working capital for 2023. Show your calculation.
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- Based upon the information below, what is the value of the company as of 1/1/2021 (use the APV model). 2018 FCF $6,000,000 2019 FCF $6,600,000 2020 FCF $6,800.000 2021 FCF $5,500,000 2022 FCF $5,800,000 2023 FCF $6,000,000 2024 FCF $6,700,000 2018 Tax Shield $250,000 2019 Tax Shield $270,000 2020 Tax Shield $280,000 2021 Tax Shield $290,000 2022 Tax Shield $310,000 2023 Tax Shield $320,000 2024 Tax Shield $340,000 Terminal growth rate: 1.5% Discount rate: 8% 100,157,709 95,609,163 101,594,609 80,184,086ABC Enterprise would like to evaluate/analyze a potential investment.. Given the following:Investment amount - 450,000 (2022)Dividends / Revenue stream - 100,000 for the first year and an interval of 5,000 for the succeeding years Discount rate - 14%a. NPV for the perio 2023 through 2029;b. Total NPV using manual computation;c. Total NPV using the Excel function; andd. IRR rate.1. How much is the net share in the profit or loss of the associate (investment income) in 2021? P480,000 P825,000 P420,000 P135,000 2. How much is the carrying amount of the investment as of December 31, 2021? P7,815,000 P8,025,000 P7,680,000 P7,125,000
- For 2020, Electro Tech Inc. has reported earnings before interest and taxes (ebit) of $6.5 million; capital expenditures of $1.2 million; and depreciation of $0.7 million. Net working capital for 2020 is $1.0 million and for 2019 is $0.7 million. The tax rate for Electro Tech is 35%. Calculate Electro Tech's free cash flow. 18.Assume that today is December 31, 2021, and that the following information applies to Abner Airlines: •After-tax operating income [EBIT (1-T)] for 2022 is expected to be $650 million. •The depreciation experse for 2022 is expected to be $100 million 0 The capital expenditures for 2022 are expected to be $375 million. •No change is expected in net operating working capital •The free cash flow is expected to grow at a constant rate of 3% per year отне required return an equity is 14% "The WACC is 12% •The firm has $190 million of conoperating assets -The market value of the company's debt is $2,454 billion '350 million shares of stock are outstanding * Using the corporate valuation model approach, what should be the company's stock price today? Raund answer to the nearest cent. your $ f R afAssume your organization wishes to make a Php 200,000 investment with a private equity firm in 2021. Taking into account all of the risks, the current discount rate is 12%, and the revenue stream/dividends are as follows: 2022 50002023 60002024 70002025 80002026 90002027 100002028 11000 Determine the following:a. NPV for the period 2022 through 2028;b. Total NPV using manual computation;c. Total NPV using the Excel function; andd. IRR rate.
- Assume that today is December 31, 2021, and that the following information applies to Abner Airlines: After-tax operating income [EBIT(1 - T)] for 2022 is expected to be $550 million. • The depreciation expense for 2022 is expected to be $200 million. The capital expenditures for 2022 are expected to be $250 million. • No change is expected in net operating working capital. • The free cash flow is expected to grow at a constant rate of 6% per year. • The required return on equity is 15%. • The WACC is 9%. • The firm has $210 million of nonoperating assets. • The market value of the company's debt is $3.727 billion. • 260 million shares of stock are outstanding. Using the corporate valuation model approach, what should be the company's stock price today? Do not round intermediate calculations. Round your answer to the nearest cent.ABM Enterprise would like to evaluate/analyze an investment proposal. Given the following: Investment amount - 450,000 (2022) Dividends / Revenue stream - 100,000 for the first year and an interval of 5,000 for the succeeding years Discount rate - 14% a. NPV for the perio 2023 through 2029; b. Total NPV using manual computation; c. Total NPV using the Excel function; and d. IRR rate.Assume that today is December 31, 2021, and that the following information applies to Abner Airlines: ⚫ After-tax operating Income [EBIT(1-T)] for 2022 is expected to be $500 million. The depreciation expense for 2022 is expected to be $160 million. The capital expenditures for 2022 are expected to be $375 million. . No change is expected in net operating working capital. ⚫ The free cash flow is expected to grow at a constant rate of 7% per year. ⚫The required return on equity is 15%. The WACC is 10%. The firm has $204 million of nonoperating assets. ⚫ The market value of the company's debt is $2.885 billion. 190 million shares of stock are outstanding. Using the corporate valuation model approach, what should be the company's stock price today? Do not round intermediate calculations. Round your answer to the nearest cent.
- Assume that today is December 31, 2021, and that the following information applies to Abner Airlines: After-tax operating income [EBIT(1 - T)] for 2022 is expected to be $600 million. The depreciation expense for 2022 is expected to be $90 million. The capital expenditures for 2022 are expected to be $250 million. No change is expected in net operating working capital. The free cash flow is expected to grow at a constant rate of 5% per year. The required return on equity is 15%. The WACC is 9%. The firm has $193 million of nonoperating assets. The market value of the company's debt is $2.918 billion. 230 million shares of stock are outstanding. Using the corporate valuation model approach, what should be the company's stock price today? Do not round intermediate calculations. Round your answer to the nearest cent.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?Begin with the partial model in the file Ch02 P21 Build a Model.xlsx on the textbooks Web site. a. Using the financial statements shown here for Lan Chen Technologies, calculate net operating working capital, total net operating capital, net operating profit after taxes, free cash flow, and return on invested capital for 2020. The federal-plus-state tax rate is 25%. b. Assume there were 15 million shares outstanding at the end of 2019, the year-end closing stock price was 65 per share, and the after-tax cost of capital was 10%. Calculate EVA and MVA for 2020. Lan Chen Technologies: Income Statements for Year Ending December 31 (Millions of Dollars) Lan Chen Technologies: December 31 Balance Sheets (Thousands of Dollars)