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Consider the following: net operating profit after taxes = $450,000, total assets = $1,000,000, interest expenses...
Consider the following: net operating profit after taxes = $450,000, total assets = $1,000,000, interest expenses = $100,000, book value (net worth) = $600,000, current liabilities = $150,000, short-term debt (notes payable) = $0, tax rate = 25%.
a. Calculate the interest coverage ratio.
b. Calculate the dollar value of long-term debt on the balance sheet.
c. Calculate the equity multiplier ratio.
d. Management intends to partially finance a growth opportunity using long-term debt. The bond contract requires that the sum of current liabilities plus long-term debt must not exceed 50% of total assets (as reported on the most recent balance sheet). Calculate the maximum dollar amount of new long-term debt
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Consider the following: net operating profit after taxes = $450,000, total assets = $1,000,000, interest ...
Consider the following: net operating profit after taxes =
$450,000, total assets = $1,000,000, interest
expenses = $100,000, book value (net worth) =
$600,000, current liabilities = $150,000, short-term debt
(notes payable) = $0, tax rate = 25%
a. Calculate the interest coverage ratio.
b. Calculate the dollar value of long-term debt on the balance
sheet.
c. Calculate the equity multiplier ratio
d. Management intends to partially finance a growth opportunity
using long-term debt. The bond contract requires...
A firm with sales of $1,000,000, net profits after taxes of $30,000, total assets of $1,500,000,...
A firm with sales of $1,000,000, net profits after
taxes of $30,000, total assets of $1,500,000, and total liabilities
of $750,000 has a return on equity of
Seleccione una:
A. 3 percent.
B. 15 percent.
C. 4 percent.
D. 20 percent.
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)...
Sales Revenue is $1,000,000, Earnings Before Interest and Taxes is $400,000, and Earnings After Interest and...
Sales Revenue is $1,000,000, Earnings Before Interest and Taxes
is $400,000, and Earnings After Interest and Taxes is $300,000.
Accounts Receivable is $50,000. The Average Collection Period is
(assume a 365 day year):
Question 1 Comparing the operating profit against total assets is often referred to return on assets...
Question 1
Comparing the operating profit against total assets is often
referred to return on assets (ROA). Which of the following
categories does ROA help evaluate?
Select one:
a. liquidity
b. leverage
c. revenue
d. profitability
Question 3
Which of the following items would not be found
on a balance sheet?
Select one:
a. Retained Earnings
b. Property, plant and equipment
c. Contributed Capital
d. Cash paid to suppliers
Question 4
Not yet answered
Which of the following groups would...
For each of the following independent situations, compute the net after-tax cash flow amount by subtracting cash outlays for operating expenses and income taxes from cash revenue.
After-Tax Cash FlowsFor each of the following independent situations, compute the net
after-tax cash flow amount by subtracting cash outlays for
operating expenses and income taxes from cash revenue. The cash
outlay for income taxes is determined by applying the income tax
rate to the cash revenue received less the cash and noncash
(depreciation) expenses.ABCCash revenue received$94,000$454,000$224,000Cash operating expenses paid58,000319,000149,000Depreciation on tax return16,00034,00024,000Income tax rate40%30%20%Do not use negative signs with any of your answers below.ABCCash revenue$Answer$Answer$AnswerCash outlays:Operating expensesAnswerAnswerAnswerIncome taxesAnswerAnswerAnswerTotal cash...
Estimating Share Value Using the DCF Model Following are forecasts of sales, net operating profit after...
Estimating Share Value Using the DCF
Model
Following are forecasts of sales, net operating profit after tax
(NOPAT), and net operating assets (NOA) as of January 31, 2016, for
Wal-Mart Stores, Inc.
Reported
Horizon Period
$ millions
2016
2017
2018
2019
2020
Terminal
Period
Sales
$482,130
$486,951
$491,821
$496,739
$501,706
$506,723
NOPAT
16,634
17,043
17,214
17,386
17,560
17,735
NOA
124,940
126,186
127,448
128,722
130,009
131,309
Answer the following requirements assuming a discount rate (WACC)
of 7%, a terminal period growth...
Estimating Share Value Using the DCF Model Following are forecasts of sales, net operating profit after...
Estimating Share Value Using the DCF Model
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.
Assume
Reported
Horizon Period
(In millions)
2011
2012
2013
2014
2015
Terminal Period
Sales
$50,272
$52,786
$55,425
$58,196
$61,106
$61,717
NOPAT
1,389
1,584
1,663
1,746
1,833
1,852
NOA
7,876
8,248
8,660
9,093
9,548
9,643
Answer the following requirements assuming a discount rate (WACC)
of 11%, a terminal period...
Estimating Share Value Using the DCF Model Following are forecasts of sales, net operating profit after...
Estimating Share Value Using the DCF Model
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.
Assume
Reported
Horizon Period
(In millions)
2011
2012
2013
2014
2015
Terminal Period
Sales
$50,272
$52,786
$55,425
$58,196
$61,106
$61,717
NOPAT
1,389
1,584
1,663
1,746
1,833
1,852
NOA
7,876
8,248
8,660
9,093
9,548
9,643
Answer the following requirements assuming a discount rate (WACC)
of 11%, a terminal period...
A company has revenues of $450,000, cost of goods sold of $250,000, and operating expenses of...
A company has revenues of $450,000, cost of goods sold
of $250,000, and operating expenses of $150,000. Its average
current assets are $200,000 of which $75,000 is inventory and
$20,000 are prepaid items. Of its liquid assets, 30 percent is cash
and the remainder is accounts receivable. Its average total assets
are $500,000 and its average total owners’ equity is $400,000.
Seventy-five percent of its liabilities are current. Of the current
liabilities, 80 percent is accounts payable. What are the...
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