Question

In: Finance

Hartzell Inc. had the following data for 2011, in millions: Net income=$600;after tax operating income [EBIT(1-t)]=&700;...

Hartzell Inc. had the following data for 2011, in millions: Net income=$600;after tax operating income [EBIT(1-t)]=&700; and total assets=$2,000. information for 2012 as follows:

Net income=$825;after-tax operating income [EBIT(1-t)]=$925; and total assets=$2,500. How much free cash flow did the firm generate during 2012?

Solutions

Expert Solution

Answer is as follows:


Related Solutions

Hartzell Inc. had the following data for 2017, in millions: Net income = $600; after-tax operating...
Hartzell Inc. had the following data for 2017, in millions: Net income = $600; after-tax operating income [EBIT (1-T)] = $700; and Total assets = $2,000. Information for 2018 is as follows: Net income = $825; after-tax operating income [EBIT (1-T)] = $825; and Total assets = $2,500. Assume the firm had no excess cash. How much free cash flow did the firm generate during 2018? a. $325 b. $367 c. $257 d. $286 e. $397
Gemco Jewelers earned $5 million in after tax operating income last year (EBIT*(1-T)). The firm had...
Gemco Jewelers earned $5 million in after tax operating income last year (EBIT*(1-T)). The firm had capital expenditures of $4 million and depreciation of $2 million during the year, and no NWC. Gemco has a pretax cost of debt of 3%, and a tax rate of 20%. The company has an unlevered beta of 1. The risk-free interest rate is 1.5% and the market risk premium is 4%. 1.Find Gemco’s Free Cash Flow (FCF) 2.Assume the FCF found is perpetual....
Tibbs Inc. had the following data for the year ending 12/31/18:Net income = $600; Net...
Tibbs Inc. had the following data for the year ending 12/31/18: Net income = $600; Net operating profit after taxes (NOPAT) = $610; Total assets = $2,500; Short-term investments = $200; Stockholders' equity = $1,800; Total debt = $700; and Total operating capital = $2,500. What was its return on invested capital (ROIC)?           a.         20.95%b.         24.40%c.         30.09%d.         34.66%11. LeCompte Corp. has $330,900 of assets, and it uses only common equity capital (zero debt). Its sales for the last year were $610,000,...
TSW Inc. had the following data for last year: Net income = $800; Net operating profit...
TSW Inc. had the following data for last year: Net income = $800; Net operating profit after taxes (NOPAT) = $700; Total assets = $3,000; and Total operating capital = $2,000. Information for the just-completed year is as follows: Net income = $1,000; Net operating profit after taxes (NOPAT) = $925; Total assets = $2,600; and Total operating capital = $2,500. How much free cash flow did the firm generate during the just-completed year?
In 20X5 MyEducator had sales of $5,521 (in millions), EBIT of $1,720 (in millions), and net...
In 20X5 MyEducator had sales of $5,521 (in millions), EBIT of $1,720 (in millions), and net income of $528 (in millions). Its DOL, DFL, and DCL are 3.21, 3.26 and 10.46, respectively. If the sales decreases to $5,200 (in millions) in 20X6, what is the earnings before interest and taxes of MyEducator in 20X6? A)$1,399 B)$674 C)$1,394 D)$1,775 E)$2,041
Last year, Ashley Inc. had a NOPAT of $700 and total net operating capital TNOC of...
Last year, Ashley Inc. had a NOPAT of $700 and total net operating capital TNOC of $1800. This year, Ashley's has a NOPAT $900 and total net operating capital TNOC of $2200. What is the free cash flow for this year? a) $300 b) $600 c) $400 d) $500 e) $700
Following are forecasts of sales, net operating profit after tax (NOPAT), and net operating assets (NOA)...
Following are forecasts of sales, net operating profit after tax (NOPAT), and net operating assets (NOA) as of February 26, 2011, for Best Buy, Inc. Refer to the information in the table to answer the following requirements. Assume Reported Horizon Period (In millions) 2011 2012 2013 2014 2015 Terminal Period Sales $40,023 $44,577 $49,650 $55,300 $61,592 $62,208 NOPAT 1,448 1,637 1,808 2,014 2,224 2,257 NOA 5,287 5,893 6,539 7,282 8,140 8,193 Answer the following requirements assuming a discount rate (WACC)...
Assume today is December 31, 2019. Barrington Industries expects that its 2020 after-tax operating income [EBIT(1...
Assume today is December 31, 2019. Barrington Industries expects that its 2020 after-tax operating income [EBIT(1 – T)] will be $400 million and its 2020 depreciation expense will be $65 million. Barrington's 2020 gross capital expenditures are expected to be $100 million and the change in its net operating working capital for 2020 will be $20 million. The firm's free cash flow is expected to grow at a constant rate of 5% annually. Assume that its free cash flow occurs...
Austin Grocers recently reported the following 2016 income statement (in millions of dollars): Sales $700 Operating...
Austin Grocers recently reported the following 2016 income statement (in millions of dollars): Sales $700 Operating costs including depreciation 500 EBIT $200 Interest 40 EBT $160 Taxes (40%) 64 Net income $96 Dividends $32 Addition to retained earnings $64 For the coming year, the company is forecasting a 15% increase in sales, and it expects that its year-end operating costs, including depreciation, will equal 60% of sales. Austin's tax rate, interest expense, and dividend payout ratio are all expected to...
Austin Grocers recently reported the following 2016 income statement (in millions of dollars): Sales $700 Operating...
Austin Grocers recently reported the following 2016 income statement (in millions of dollars): Sales $700 Operating costs including depreciation 500 EBIT $200 Interest 40 EBT $160 Taxes (40%) 64 Net income $96 Dividends $32 Addition to retained earnings $64 For the coming year, the company is forecasting a 20% increase in sales, and it expects that its year-end operating costs, including depreciation, will equal 75% of sales. Austin's tax rate, interest expense, and dividend payout ratio are all expected to...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT