1)TTaa Company had the following data for last year:
Earnings before interest and taxes $5,000,000
Net depreciation expenses $1,000,000
Interest expenses $1,000,000
Applicable income tax rate 25%
Operating current assets $24,000,000
Operating current liabilities $4,000,000
Net plant and equipment $28,000,000
Estimated after tax cost of capital 10%

Assume that the company had only depreciation as non cash items or transactions
Find the company's
net income for the year
net cash flow
net operating profit after taxes (NOPAT)
net operating working capital
net operating capital for the current year

2) You have the following data for XX Company during the year 200N:
Cash $1,000
Marketable security $50,000
Fixed assets $400,000
Sales $500,000
Net income $45,000
Quick ratio 5 times
Current ratio 4 times
DSO 30 days
ROE 10%

Find
Account receivable
Current liabilities
Current assets
Total assets
ROA
Common equity
Long term debt

3) Assume the following information for ABC Co. Current free cash flow (FCF) $40,000 
FCF is expected to grow at a constant rate of
5%
The weighted cost of capital (WACC) 10%
Current non-operating marketable securities $30,000
Long term debt $200,000
Preferred stocks 0
Outstanding common stocks 20,000
The company never paid dividends 
Find 
1. the company's value of operation
2. company's total value
3. intrinsic value of company’s common equity
4. the intrinsic per share stock price 

    • 12 years ago
    100% Quality Work A+ Tutorial Guaranteed Work for you use as Guide
    NOT RATED

    Purchase the answer to view it

    blurred-text
    • attachment
      net_income.xlsx