Question
In: Finance
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 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.
Solutions
jeff jeffy answered 1 year agoRelated Solutions
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...
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...
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...
Compute and interpret the net-operating profit after tax (NOPAT) of the company for 2018 and 201
Balance sheet
Items
2019
2018
Cash
8,313
11,604
Marketable securities
696
618
Account receivables
23,795
30,563
Inventory
1,619
1,682
Prepaid expenses
3,997
4,678
Net Fixed Assets
96,457
68,764
Investment in AB Co. stocks
17,309
5,473
Account payables
24,600
21,372
Wages and salaries payable
13,101
16,855
Bond payable (10 yrs.)
54,102
35,605
Notes payable (3 yrs.)
39,398
32,621
Total shareholders’ Equity Capital
20,985
16,929
B. Income statement
Items
2019
2018
Revenues
77,147
79,591
Cost of goods sold
40,659
42,655
Salaries...
Assume XYZ total assets $1,000,000 and net fixed $600,000. But current liabilities $200,000. Calculate the company...
Assume XYZ total assets $1,000,000 and net fixed $600,000. But
current liabilities $200,000. Calculate the company current ratio?
Select one
: a. 3x
b. 2x
c. 1.5x
d. 4x
q2:An investor is considering purchasing a 10-year zero-coupon
bond of $1,000 par value. If the current interest rate for equally
risky bonds is 13%. The bond will be sold at? Select one:
a. Premium.
b. Fair value.
c. Discount.
Assume a bond is trading at par, and it pays a coupon...
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