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In: Finance
HiTech Solutions is expected to have sales of 118340000 next year. Their cost of goods sold...
HiTech Solutions is expected to have sales of 118340000 next year. Their cost of goods sold is 37% of their sales and their SG&A is 22% of sales. The firms corporate tax rate is 35%. It is expected that 550000 of operating cash flow will be invested in new fixed assets each year. Depreciation for the year will be 225000. After the coming year, cash flows are expected to grow at 4% per year forever. The appropriate rate for their cash flows is 16& per year. The firm has outstanding debt with a market value of $200 million, a face value of $150 million and a coupon of 4%. It will maintain that level over time. The total value of the equity of F&G manufacturing company should be how much when using the Free Cash Flow to the Firm method?
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jeff jeffy answered 1 year agoRelated Solutions
(1). ABC expects sales of $21,830,000 this year. The cost of goods sold is expected to be...
(1). ABC expects sales of $21,830,000 this year. The
cost of goods sold is expected to be $12,468,000 while selling,
general and admin (SGA) expenses are forecast to be $4,114,000. The
firm expects depreciation expenses to be $202,000 and expects to
pay an average interest rate of 4% on its $4,415,000 of
liabilities. Given its tax rate of 40%, what is the expected net
income for ABC this year?(If it is a negative, be sure and enter a
negative sign)
(2)....
Company is in the process of preparing its budget for next year. Cost of goods sold...
Company is in the process of preparing its budget for next year.
Cost of goods sold has been estimated at 60 percent of sales.
Merchandise purchases are to be made during the month preceding the
month of the sales. Button pays 60 percent in the month of purchase
and 40 percent in the month following. Wages are estimated at 20
percent of sales and are paid during the month of sale. Other
operating costs amounting to 10 percent of sales...
What effect does the elimination of intercompany sales and cost of goods sold have on consolidated...
What effect does the elimination of intercompany sales and cost
of goods sold have on consolidated net income? AND what effect does
the elimination of intercompany accounts receivable and accounts
payable have on consolidated working capital? Explain your
answer.
For the most recent year, Camargo, Inc., had sales of $570,000, cost of goods sold of...
For the most recent year, Camargo, Inc., had sales of $570,000,
cost of goods sold of $249,870, depreciation expense of $64,900,
and additions to retained earnings of $77,300. The firm currently
has 24,500 shares of common stock outstanding and the previous
year’s dividends per share were $1.52. Assuming a 24 percent income
tax rate, what was the times interest earned ratio?
The Cost of Sales (or Cost of Goods Sold) is usually considered the most important cost...
The Cost of Sales (or Cost of Goods Sold) is usually
considered the most important cost in hospitality businesses. How
is it determined? Please select the most appropriate
answer.
1. It is calculated by adding up all purchases of
inventory during one accounting period.
2. It is the amount of inventory on hand. It is
calculated by adding the value of every item of inventory available
on hand.
3. It is calculated by adding all purchase amounts to
the beginning...
Williams & Sons last year reported sales of $17 million,cost of goods sold (COGS) of...
Williams & Sons last year reported sales of $17 million,
cost of goods sold (COGS) of $12 and an inventory turnover ratio of
2. The company is now adopting a new inventory system. If the new
system is able to reduce the firm's inventory level and increase
the firm's inventory turnover ratio to 3 while maintaining the same
level of sales and COGS, how much cash will be freed up? Do not
round intermediate calculations. Round your answer to the...
Williams & Sons last year reported sales of $9 million, cost of goods sold (COGS) of...
Williams & Sons last year reported sales of $9 million, cost
of goods sold (COGS) of $6 million, and an inventory turnover ratio
of 2. The company is now adopting a new inventory system. If the
new system is able to reduce the firm's inventory level and
increase the firm's inventory turnover ratio to 3 while maintaining
the same level of sales and COGS, how much cash will be freed up?
Do not round intermediate calculations. Enter your answer in...
Williams & Sons last year reported sales of $97 million, cost of goods sold (COGS) of...
Williams & Sons last year reported sales of $97 million,
cost of goods sold (COGS) of $80 million, and an inventory turnover
ratio of 5. The company is now adopting a new inventory system. If
the new system is able to reduce the firm's inventory level and
increase the firm's inventory turnover ratio to 8 while maintaining
the same level of sales and COGS, how much cash will be freed up?
Do not round intermediate calculations. Enter your answer in...
During the year, Belyk Paving Co. had sales of $2,392,000. Cost of goods sold, administrative and...
During the year, Belyk Paving Co. had sales of $2,392,000. Cost
of goods sold, administrative and selling expenses, and
depreciation expense were $1,433,000, $435,800, and $490,800,
respectively. In addition, the company had an interest expense of
$215,800 and a tax rate of 35 percent. (Ignore any tax loss
carryback or carryforward provisions.) a. What is the company’s net
income? (A negative answer should be indicated by a minus sign. Do
not round intermediate calculations and round your answer to the...
Alamo company has sales, cost of goods sold, and average ending inventory for the current year...
Alamo company has sales, cost of goods sold, and
average ending inventory for the current year in the following
amounts: $650,000, $500,000,and $128,000,respectively. calculate
the amount of the company's inventory turnover for the year. what
is the company's average number of days to sell inventory
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