Please explain in excel format if possible: A manufacturer of air filter systems for industrial facilities,...

Please explain in excel format if possible:

A manufacturer of air filter systems for industrial facilities, is considering the addition of a new system to its current product line. The following data has been forecasted:

Years	2012	2013	2014	2015
Depreciation	30,000	35000	40000	45000
EBIT	100,000	125,000	150,000	175,000
Investment in Operating Assets	30,000	40,000	50,000	60,000

The market value of the firm's debt is $500,000 and it has $150,000 in marketable securities. The company also has 10,000 of preferred stocks that just paid an annual dividend of $0.75. Investors require a rate of return of 7% on preferred stocks of similar risk. Moreover, the firm has 200,000 shares of stock outstanding and its weighted average cost of capital is 15%. The expected tax rate is 35% in the next two years and 40% after that.

a. Calculate the free cash flow for each of the next three years.

b. After 2015 the firm's free cash flow is expected to grow at 5% per year indefinitely. What is the value of the stock today?

Expert Solution

Appreciate your Feedback. Please give thumbs up. It will help me

jeff jeffy answered 1 year ago

A manufacturer of air filter systems for industrial facilities, is considering the addition of a new...

A manufacturer of air filter systems for industrial facilities, is considering the addition of a new system to its current product line. The following data has been forecasted: Years 2012 2013 2014 2015 Depreciation 30,000 35000 40000 45000 EBIT 100,000 125,000 150,000 175,000 Investment in Operating Assets 30,000 40,000 50,000 60,000 The market value of the firm's debt is $500,000 and it has $150,000 in marketable securities. The company also has 10,000 of preferred stocks that just paid an annual...

(Please answer this question in an excel format if possible.) Please provide very detailed explanation and...

(Please answer this question in an excel format if possible.) Please provide very detailed explanation and answers if possible. The Poster Bed Company believes that its industry can best be classified as monopolistically competitive. An analysis of the demand for its canopy bed has resulted in the following estimated demand function for the bed: P ¼ 1760 12Q The cost analysis department has estimated the total cost function for the poster bed as TC ¼ 1 3 Q3 15Q2 þ...

(Please answer this question in an excel format if possible.) The Poster Bed Company believes that...

(Please answer this question in an excel format if possible.) The Poster Bed Company believes that its industry can best be classified as monopolistically competitive. An analysis of the demand for its canopy bed has resulted in the following estimated demand function for the bed: P ¼ 1760 12Q The cost analysis department has estimated the total cost function for the poster bed as TC ¼ 1 3 Q3 15Q2 þ 5Q þ 24;000 a. Calculate the level of output...

Please post code in format that can be copied. If possible please explain code but not...

Please post code in format that can be copied. If possible please explain code but not necessary. Directions: 1. Create a new project for the lab and copy stat.h, stat.cpp, and teststat.cpp into your workspace. 2. Now review the header file. Make sure you understand the design. Can you explain the difference between what the class represents versus how it plans to accomplish it? 3. Now edit the stat.cpp file. Notice that many of the member functions are missing. For...

Please explain in manual written format and EXCEL function. Mercury is a heavy metal that can...

Please explain in manual written format and EXCEL function. Mercury is a heavy metal that can cause severe health problems in even small concentrations. Fish and shellfish efficiently concentrate mercury into their flesh, so it is important to monitor seafood for its mercury content. An extensive study conducted in 1980 concluded that the mean mercury level in oysters from the White Bear Estuary was .020 parts per million (ppm) with a population standard deviation , σ, of .022 ppm. In...

PLEASE ANSWER IN EXCEL FORMAT THAT IS EASILY UNDERSTOOD ONLY, THANK YOU!! (no writing please) [EXCEL]...

PLEASE ANSWER IN EXCEL FORMAT THAT IS EASILY UNDERSTOOD ONLY, THANK YOU!! (no writing please) [EXCEL] Percent of sales: Cattail Corporation's financial statements for the fiscal year just ended are shown below: Cattail Corporation Income Statement Net Sales: $1500 Costs: $350 Net Income: $1150 Balance Sheet Assets $700 = $700 Debt $600 Equity 100 = $700 Cattail management expects sales to increase by 14 percent next year. Assume that the financial statement accounts vary directly with changes in sales and...

Solid desiccant air dehumidifier systems are widely used to supply dry air for many industrial processes....

Solid desiccant air dehumidifier systems are widely used to supply dry air for many industrial processes. As humid atmospheric air flows through the system, the water vapor in the air is adsorbed by the desiccant material, resulting in dry air leaving the system. Inlet air velocity and tekperature are observed as predominant parameters that influence the outlet conditions of the air. Consider a cylindrical air channel with a length of 1 meter and an inner diameter of 20 mm, as...

Please explain in written format and EXCEL function. Over the past few decades, public health officials...

Please explain in written format and EXCEL function. Over the past few decades, public health officials have examined the link between weight and teen girls’ smoking. Researchers surveyed a group of 273 randomly selected teen girls between 12 and 15 years old living in Massachusetts . After four years, the girls were surveyed again. Sixty-three said that they smoked to stay thin. Is there good evidence that more than 30% of the teen girls smoke to stay thin? After conducting...

Please explain as much as possible. 1. Demonstrate an understanding of how Intrusion Detection Systems and...

Please explain as much as possible. 1. Demonstrate an understanding of how Intrusion Detection Systems and protocol analyzers work. 2. Demonstrate an understanding of how to use event logs, session data, and network communication to find and remediate network intrusions 3. Demonstrate understanding of network security monitoring and incident response

Can someone please explain step-by-step if possible? Miller Company’s contribution format income statement for the most...

Can someone please explain step-by-step if possible? Miller Company’s contribution format income statement for the most recent month is shown below: Total Per Unit Sales (37,000 units) $ 222,000 $ 6.00 Variable expenses 111,000 3.00 Contribution margin 111,000 $ 3.00 Fixed expenses 44,000 Net operating income $ 67,000 Required: (Consider each case independently): 1. What is the revised net operating income if unit sales increase by 20%? 2. What is the revised net operating income if the selling price decreases...

Question