Financial Management: Theory & Practice
Financial Management: Theory & Practice
16th Edition
ISBN: 9781337909730
Author: Brigham
Publisher: Cengage
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Chapter 2, Problem 18P

Rhodes Corporation’s financial statements are shown after part f. Suppose the federal-plus-state tax corporate tax is 25%. Answer the following questions.

  1. a. What is the net operating profit after taxes (NOPAT) for 2020?
  2. b. What are the amounts of net operating working capital for both years?
  3. c. What are the amounts of total net operating capital for both years?
  4. d. What is the free cash flow for 2020?
  5. e. What is the ROIC for 2020?
  6. f. How much of the FCF did Rhodes use for each of the following purposes: after-tax interest, net debt repayments, dividends, net stock repurchases, and net purchases of short-term investments? (Hint: Remember that a net use can be negative.)

Rhodes Corporation: Income Statements for Year Ending December 31 (Millions of Dollars)

Chapter 2, Problem 18P, Rhodes Corporations financial statements are shown after part f. Suppose the federal-plus-state tax , example  1

Rhodes Corporation: Balance Sheets as of December 31 (Millions of Dollars)

Chapter 2, Problem 18P, Rhodes Corporations financial statements are shown after part f. Suppose the federal-plus-state tax , example  2

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Rhodes Corporation’s financial statements are shown after part f. Suppose the federalplus- state tax corporate tax is 25%. Answer the following questions.a. What is the net operating profit after taxes (NOPAT) for 2020?b. What are the amounts of net operating working capital for both years?c. What are the amounts of total net operating capital for both years?d. What is the free cash flow for 2020?e. What is the ROIC for 2020?f. How much of the FCF did Rhodes use for each of the following purposes: after-tax interest, net debt repayments, dividends, net stock repurchases, and net purchases of short-term investments? (Hint: Remember that a net use can be negative.)
Assume a corporation has earnings before depreciation and taxes of $100,000, depreciation of $50,000, and that it has a 30 percent tax bracket. Compute its cash flow using the format below. Earnings before depreciation and taxes  Depreciation  Earnings before taxes  Taxes @ 30%  Earnings after taxes  Depreciation
A4) Finance You estimate that the net income for a company next year is a uniform distribution with a minimum of $106 million and a maximum of $127 million. What is the probability that the company's net income is less than or equal to $117 million? Enter answer in percents, to two decimal places.

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Financial Management: Theory & Practice

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