Question

In: Finance

1. Ogier Incorporated currently has $900 million in sales, which are projected to grow by 8%...

1. Ogier Incorporated currently has $900 million in sales, which are projected to grow by 8% in Year 1 and by 4% in Year 2. Its operating profitability (OP) is 7%, and its capital requirement (CR) is 65%. Do not round intermediate calculations. Enter your answers in millions. For example, an answer of $1 million should be entered as 1, not 1,000,000. Round your answers to two decimal places.

What are the projected sales in Years 1 and 2 (in million)?

What are the projected amounts of net operating profit after taxes (NOPAT) for Years 1 and 2 (in million)?

What are the projected amounts of total net operating capital (OpCap) for Years 1 and 2 (in million)?

What is the projected FCF for Year 2 (in million)?

Solutions

Expert Solution


Related Solutions

Nextbig Corp. currently has sales of $870 million; sales are expected to grow by​ 26% next...
Nextbig Corp. currently has sales of $870 million; sales are expected to grow by​ 26% next year​ (year 1). For the year after next​ (year 2), the growth rate in sales is expected to equal​ 13%. Over each of the next 2​ years, the company is expected to have a net profit margin of 11​% and a payout ratio of 55​%, and to maintain the common stock outstanding at 25.85 million shares. The stock always trades at a​ P/E of...
ABC Company currently has sales of $250 million. The company's sales are expected to grow 20%...
ABC Company currently has sales of $250 million. The company's sales are expected to grow 20% next year (year 1) and 10% during year 2. The analyst expects the company to have a net profit margin of 8% each year, a dividend payout ratio of 50%, 15 million shares of common stock outstanding over the time horizon, and sell for a p/e ratio of 15 at the end of year 2. If the required rate of return is 20%, then...
ABC Company has projected Sales of $13181 in January. The sales are expected to grow by...
ABC Company has projected Sales of $13181 in January. The sales are expected to grow by 9% each month. ABC's collection schedule is as follows: ABC collects 55 percent of its sales in the month of sale and the remainder is collected in the following month. What is the amount of the March cash collections?
Burklin, Inc., has earnings of $18.5 million and is projected to grow at a constant rate...
Burklin, Inc., has earnings of $18.5 million and is projected to grow at a constant rate of 5 percent forever because of the benefits gained from the learning curve. Currently, all earnings are paid out as dividends. The company plans to launch a new project two years from now that would be completely internally funded and require 25 percent of the earnings that year. The project would start generating revenues one year after the launch of the project and the...
A Bank has $100 million in capital, and $900 million of checkable deposit. The bank currently...
A Bank has $100 million in capital, and $900 million of checkable deposit. The bank currently maintains a total reserve of $100 million dollars, $200 million in T-bills, and rest in loans. A new corporate customer opens a checkable deposit account, and deposit $100 million. 1a. Please show the T-Account of the bank after the deposit? 1b. If the required reserve ratio is 10%, what is likely to happen? 1c. If the required rate for reserves increase to 11%, what...
A) Cathey Corporation currently has sales of $1,200, which are expected to grow by 10% from...
A) Cathey Corporation currently has sales of $1,200, which are expected to grow by 10% from Year 0 to Year 1 and by 4% from Year 1 to Year 2. The company currently has an operating profitability ratio (OP) of 7% and a capital requirement ratio (CR) of 50% and expects to maintain these ratios at their current levels. The current level of total net operating capital (OpCap) is $550. Use these inputs to forecast free cash flow (FCF) for...
TB Problem Qu. 8-217 Tilson Corporation has projected sales and ... Tilson Corporation has projected sales...
TB Problem Qu. 8-217 Tilson Corporation has projected sales and ... Tilson Corporation has projected sales and production in units for the second quarter of the coming year as follows: April May June Sales 49,000 39,000 59,000 Production 59,000 49,000 49,000 Cash-related production costs are budgeted at $6 per unit produced. Of these production costs, 40% are paid in the month in which they are incurred and the balance in the following month. Selling and administrative expenses will amount to...
Piedomont Products LTD (PPL) has current sales of $60 million. sales are expected to grow to...
Piedomont Products LTD (PPL) has current sales of $60 million. sales are expected to grow to $80 million next year. PPL currently has accounts receivables of $9 million, inventories of $15 million and net fixed assets of $24 million. These assets are expected to grow at the same rate as sales over the next year. Accounts payable are expected to increase from their current level of $15 million to a new level of $19 million next year. PPL wants to...
Bruin Inc. will have earnings of $15 million next year and is projected to grow at...
Bruin Inc. will have earnings of $15 million next year and is projected to grow at a constant rate of 6 percent forever. All earnings are paid out as dividends to shareholders. The company plans to launch a new project three years from now that will cost $10 million. The project will increase the firm's annual earnings by a constant $8.3 million every year forever starting one year later (i.e. 4 years from now). What is the market value of...
Bruin Inc. will have earnings of $15 million next year and is projected to grow at...
Bruin Inc. will have earnings of $15 million next year and is projected to grow at a constant rate of 6 percent forever. All earnings are paid out as dividends to shareholders. The company plans to launch a new project three years from now that will cost $10 million. The project will increase the firm's annual earnings by a constant $8.3 million every year forever starting one year later (i.e. 4 years from now). What is the market value of...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT