Calculation of FCFE A company has the following information: Earnings before interest and taxes Interest expense Tax rate Net change in debt Investment in total capital $80.00 $13.00 25% $12.00 $9.00
Q: Here and Gone, Inc., has sales of $21,332,097, total assets of $12,393,090, and total debt of…
A: Profitability ratio shows the ability of the company to generate income relative to its revenue,…
Q: Apply DuPont Disaggregation of ROE Selected balance sheet and income statement information for…
A: Return on Equity Return on Equity is a metric that expresses a company's annual return (net income)…
Q: Defined payout policy. What are the two main ways companies distribute earnings to investors?
A: We have to define the dividend payout policy and then explain the two main ways companies distribute…
Q: ane needs $30,000 to buy a new car in four years. How much should she deposit at the endof each…
A: We will use the concept of time value of money here. The concept of time value of money states that…
Q: Constant growth rate, infinite horizon (with growth rate estimate) from past history: using the…
A: As the given information: Required rate of return - 18%…
Q: Consider a rate of interest of 4.1000000000 % compounded annually. Comp following equivalent…
A: Effective interest rate is the interest rate considering the impact of compouding and more is the…
Q: What are the expected returns for stock A and stock B? State Probability Return on A Return on B…
A: State Probability Return on A Return on B Boom 0.6 0.35 0.1 Bust 0.4 0.05 0.25 Expected…
Q: QUESTION 10 An investor borrows $5,000 at the risk free rate of 4% and invests this $5,000 together…
A: Solution:- Expected return means the rate of return earned from portfolio. It is the weighted…
Q: Anne Dietz at Changi #3 (Singapore). Anne Dietz lives in Singapore but is making her first business…
A: The Cross rate refers to the concept which states the foreign rate that tells us the exchange rate…
Q: Ivanhoe Products Co. currently has debt with a market value of $250 million outstanding. The debt…
A: WACC weighted average cost of capital which is the hurdle rate for company is the weighted cost of…
Q: what must the beta be for the other stock in your portfolio?
A: The beta of a portfolio helps measure the portfolio's systematic risk. The portfolio beta is…
Q: (Mutually exclusive projects and NPV) You have been assigned the task of evaluating two mutually…
A: Project A Project B Initial Cash Outlay $ 95,000.00 $ 95,000.00…
Q: You deposit $100 at the end of each month in a bank account that earns 6% interest compounded…
A: Future value of monthly deposit in a bank account is calculated using following equation Future…
Q: Huntington Power Co. has issued following three securities as its long-term source of capital.…
A: Bond Outstanding = 2,500 Current market price of the bond = $1,080 Preferred Stock Outstanding =…
Q: Duques Corp. is 100% equity financed. Its cost of equity is 12%. The firm plans to issue bond to…
A: We have to deploy the MM hypothesis and propositions, in the absence of the taxes to answer this…
Q: Kro Ltd has designed a new product and conducted a market survey to assess its viability. The survey…
A: NPV is one of the discounted cash flow methods (DCF) used for evaluating capital investment…
Q: Assuming the cost of mortgage is $400,000, and the wner of the house makes a down payment of…
A: Mortgage $ 4,00,000.00 Down Payment $ 40,000.00 Interest Rate 8% Time Period (Years) 10
Q: Current assets Net Fixed assets Total assets Accounts payable and accurals. Short term debt Long…
A: Weighted Average Cost of Capital (WACC) is the cost determined for the business based on the weight…
Q: rest rate is 1.2% per month, what is the APR? 2) Which is better if you’re taking a car
A: APR is annual percentage rate that is interest rate without compouding of interest and APR is much…
Q: nt Disaggregation of ROE Refer to the balance sheets and income statement below for Facebook Inc.…
A: In 2018 given PAT=21056 Shareholders' Equity =85,183 So RoE =21056/85183=0.2472=24.72%…
Q: 4 eBook Print References Drill Problem 10-9 (Static) [LU 10-1 (2)] Complete the following, using…
A: Solution: An amount borrowed has to be paid along with interest. As per exact method, Interest…
Q: If Blades does not enter into the agreement with the British firm and continues to export to…
A: Comapnies trade in the different currencies due to having business across the world due to which…
Q: Here are the most recent balance sheets for Country Kettles, Incorporated. Excluding accumulated…
A: Transactions that increase the cash balance are classified as sources of cash, while transactions…
Q: According to portfolio theory, which of the following statements is true about the Capital…
A: CAL Each single combination of risky assets and risk free asset are included in the set of…
Q: Suppose that there are many stocks in the security market and that the characteristics of stocks A…
A: When the correlation coefficient between stocks is -1, it's possible to create a portfolio with zero…
Q: Ariel leased equipment worth $70,000 for 10 years. If the lease rate is 4.75% compounded monthly,…
A: Lease is amount paid to acquire the right to use the equipment during the life of assets. Lease are…
Q: Current assets Net Fixed assets ● Total assets Accounts payable and accurals. Short term debt Long…
A: The Dividend Growth Model refers to a model that helps in calculating the intrinsic value of a stock…
Q: td is considering investing in a project which has the following cash flows: £000 Initial…
A: Capital budgeting is selection of the best projects among available projects and there are many…
Q: Suppose that you borrow a certain amount of money at 4% effective and you will repay the loan by…
A: Loans are paid by the equal fixed periodic payments that carry the payment for interest and also…
Q: Mr. Ravi purchased 100 shares of Ghc20 each of Radheshyam Ltd. in 2013 at Ghc 88 per share. The…
A: Data given: D1=Dividend declared for the year 2015-16= 30% P0=Market price of share as of 1-4-2015 =…
Q: 1. Find the Yield to Maturity (YTM) for the following government bonds 99.83 2.25% 100 3 2.31% Price…
A: Here, Part 1. To Find: Yield to maturity (YTM) =? Part 2. To Find: Current price (PV) =?
Q: 3. What is the semi-annual coupon rate on the following government bonds? YTM Semi-ann Face valu…
A: GIven The YTM 4% Face value 100
Q: A gentleman bought a limited edition Wolverine figurine in 1974 for $0.15. In 2012, 38 years later,…
A: The return earned on an investment can be calculated using the future value, present value and…
Q: why the asymmetric information is an obstacle to the direct finance? Give examples of moral hazard…
A: When one side to a financial activity has more or accurate information than the other and takes…
Q: Compute ROE Selected balance sheet and income statement for Facebook Inc. follows. $ millions Dec.…
A: ROE return on equity is one of important measure of the profitability and this show how much is the…
Q: Holtzman Clothiers's stock currently sells for $30.00 a share. It just paid a dividend of $1.75 a…
A: Compute the expected stock price after 1 year, using the equation as shown below: Stock…
Q: Question 70 An event of default by a borrower from a bank would be: O a. A failure to make principal…
A: Solution:- When an amount is borrowed from bank, it can either be repaid in installments or as a…
Q: respectively
A: C is risk-free so Beta =0, Take Wa as the Weight of A in the portfolio= 12000/50000=0.24 Weight…
Q: Which of the following activities offers the highest risk and return? O a. Trading shares for an…
A: Risk and return are both go together and when risk is high than return is high and risk is low and…
Q: Consider an A-rated bond and a B-rated bond. Assume that the one-year probabilities of default for…
A: Greater is the correlation of default between the securities higher is the joint probability of…
Q: Florida Electric Company (FEC) uses only debt and equity. It can borrow unlimited amounts at an…
A: WACC stands for a weighted average cost of capital shows the rate of return from the various…
Q: Current assets Net Fixed assets Total assets Accounts payable and accurals. Short term debt Long…
A: Weighted Average Cost of Capital (WACC) is the cost determined for the business based on the weight…
Q: Suppose it is Jan 1st, and the futures price for August 1st delivery of a 1-year zero-coupon…
A: A bank has taken a position in the futures contract of a 1-year zero-coupon government T-bill. Based…
Q: 13. Assume that your hotel wants to have $1,000,000 in 12 years. Your hotel wants to start…
A: The present value is the amount invested today for any particular sum of money received on a future…
Q: entory balance was $1.67
A: First of all, find ITOR (Inventory Turnover Ratio) = Cost of Goods Sold COGS/ Average Inventory.…
Q: How many years (and months) will it take $2 million to grow to $3.60 million with an annual interest…
A: Initial amount (I) = $2 million Future value (FV) = $3.6 million Interest rate (r) = 0.09 Period = ?
Q: Compute DuPont Analysis Ratios Selected balance sheet and income statement information for Humana…
A: Profitability ratio shows the ability of the company to generate income relative to its revenue,…
Q: The risk for ______________ portfolio is essentially equivalent to the systematic risk. a. a…
A: Risk is an important part of finance in general and investing in particular. Risks in investing…
Q: June 4 June 11 June 18 June 25 Units Received 30 80 A. $2.46 C. $2.42 50 40 Unit Cost You sell 100…
A: By using the first-in and first-out concept, the quantity or balance of the stock at the beginning…
Q: Suppose you are thinking of purchasing the SunStar’s common stock today. If you expect SunStar to…
A: Dividend D1 = $0.80 Dividend D2 = $1.60 Year 2 stock price = $15 Required rate of return = 10%
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- Category Accounts payable Accounts receivable Accruals Additional paid in capital Cash Common Stock COGS Current portion long-term debt Depreciation expense Interest expense Inventories Long-term debt Net fixed assets Notes payable Operating expenses (excl. depr.) Retained earnings Sales Taxes Prior Year Current Year ??? ??? 320,715 397,400 40,500 33,750 500,000 541,650 17,500 47,500 94,000 105,000 328,500 431,876.00 33,750 35,000 54,000 54,402.00 40,500 42,823.00 279,000 288,000 339,660.00 398,369.00 946,535 999,000 148,500 162,000 126,000 162,881.00 306,000 342,000 639,000 847,928.00 24,750 47,224.00 What is the current year's return on assets (ROA)? Submit Answer format: Percentage Round to: 2 decimal places (Example: 9.24%, % sign required. Will accept decimal format rounded to 4 decimal places (ex: 0.0924))Category Accounts payable Accounts receivable Accruals Additional paid in capital Cash Common Stock COGS Current portion long-term debt Depreciation expense Interest expense Inventories Long-term debt Net fixed assets Notes payable Operating expenses (excl. depr.) Retained earnings Sales Taxes Prior Year Current Year 3,106.00 5,972.00 6,919.00 8,940.00 5,691.00 6,099.00 20,212.00 13,343.00 ??? ??? 2,850 18,751.00 500 2,850 22,826.00 500 965.00 1,016.00 1,259.00 1,123.00 3,086.00 6,750.00 16,982.00 22,296.00 75,731.00 73,844.00 4,053.00 6,596.00 19,950 20,000 35,937.00 34,762.00 46,360 45,530.00 350 920 What is the firm's cash flow from operations? Submit Answer format: Number: Round to: 0 decimal places.Compared to the ROE in 2020, the ROE in 2021 has Improved / 6.65% Improved / 3.43% Worsened / -6.65% Worsened / -3.43% Stayed the same / 0% by
- Solar Solutions began operations on January 1, 2015, and is now in its sixth year of operations. It is a retail sales company with a large amount of online sales. The adjusted trial balance as of December 31, 2020 appears below, along with prior year balance sheet data and some additional transaction data for 2020. SOLAR SOLUTIONS Adjusted Trial Balance 12/31/2020 2020 2019 Account Title Adjusted Trial Balance Post-Closing Trial Balance $ 125,600 Debit Credit 35,000 6,000 Debit Credit Cash Accounts Receivable Prepaid Insurance Inventory Office Equipment Machinery & Tools |Accumulated Depreciation Accounts Payable Salaries Payable Sales Tax Payable Note Payable-Long Term Common Stock, $10 par Retained Earnings $ 122,200 125,600 55,000 35,000 15,600 5,000 6,000 47,000 46,000 15,600 21,000 63,000 47,000 (16,000) $ 234,200 59,000 21,000 21,000 16,000 11,200 16,800 2,600 2,700 2,000 31,000 4,000 22,100 240,000 160,000 28,600 28,600 Dividends 10,000 Sales Revenue 235,000 Cost of Goods Sold…Use the financial ratios of company A and company B to answer the questions below. Company A Company B Yr t+1 Year t Yr t+1 Year t Current ratio 0.55 0.59 0.56 0.55 Accounts receivable turnover 6.22 6.25 5.06 4.87 Debt to total assets 40.5% 40% 67.8% 65.9% Times interest earned 8.80 30.6 5.97 6.33 Free cash flows (in millions) ($3,819) $3,173 $168 $550 Return on stockholders’equity 7.7% 7.7% 26.6% 23.3% Return on assets 4.3% 4.3% 8.9% 7.9% Profit margin…Requirement 1. Compute these ratios: Working Capital Current Debt-to- Ratio Cash Ratio Debt Ratio Equity Ratio Round ratios to two 14.44 212400 7.73 decimal places or format as percentages or Accounts Days Sales currency as appropriate. Inventory Days Sales in Gross ProfitReceivable in Turnover Inventory Percentage Turnover Receivables 2019 Total Assets = Rate of Rate of Asset Return on Return on Turnover Stockholders' Earnings Total Assets Ratio Equity Per Share 2019 SHE = Price/ Earnings *Current Stock Price is Dividend $10.00 per share Ratio* Dividend Yield Payout Dividend per share= Requirement 2. Based on the ratios computed above, analyze the company's ability to pay its debts (both current and long term). Refer to at least 3 specific ratios in your analysis. Requirement 3: Based on the ratios computed above, analyze the company's management of inventory. Refer to at least 2 specific ratios in your analysis. Requirement 4: Based on the ratios computed above, analyze the company's…
- O Accounts payable Accounts receivable Accruals Category Additional paid in capital Cash Common Stock COGS Current portion long-term debt Depreciation expense Interest expense Inventories Long-term debt Not fixed assets Notes payable Operating expenses (excl. depr.) Retained earnings Sales Taxes Prior Year Current Year 3,153.00 5,992.00 6,936.00 9,031.00 5,792.00 6,116.00 20,429.00 13,896.00 ??? Category 222 2,850 22,561.00 500 952.00 4,008.00 46,360 350 What is the firm's cash flow from financing? 1,259.00 1,120.00 3,060.00 6,658.00 16,820.00 22,100.00 75,431.00 74,071.00 6,567.00 19,950 20,000 35,524.00 34,531.00 45,432.00 2,850 Submit 18,594.00 500 1,019.00 920 Answer format: Number: Round to: 0 decimal placesCash Accounts receivable (net) Inventories Total current assets Noncurrent assets Current liabilities Long-term liabilities Shareholders' equity Net income Interest expense Income tax expense Sanchez Corporation Selected Financial Information The debt to equity ratio for 2016 is: OA) 0.80 OB) 0.44 Oc) 0.67 OD) 0.13 12/31/16 $ 20,000 100,000 190,000 310,000 230,000 200,000 40,000 300,000 $40,000 10,000 20,000Category Prior Year Current Year Accounts payable ??? Accounts receivable 320,715 397,400 Accruals 40,500 33,750 Additional paid in capital 500,000 541,650 Cash 17,500 47,500 Common Stock 94,000 105,000 COGS 328,500 431,516.41 Current portion long-term debt 33,750 35,000 Depreciation expense 54,000 55,946.66 Interest expense 40,500 41,874.31 Inventories 279,000 288,000 Long-term debt 336,467.85 401,942.46 Net fixed assets 946,535 999,000 Notes payable 148,500 162,000 Operating expenses (excl. depr.) 126,000 161,499.58 Retained earnings 306,000 342,000 Sales 639,000 854,554.01 Taxes 24,750 48,384.56 ??? What is the current year's return on equity (ROE)? Submit Answer format: Percentage Round to: 2 decimal places (Example: 9.24%, % sign re rounded to 4 decimal places (ex: 0.0924))
- The comparative accounts payable and long-term debt balances for a company follow. Current Year Previous YearAccounts payable $111,000 $100,000Long-term debt 132,680 124,000Based on this information, what is the amount and percentage of increase or decrease that would be shown on a balance sheet with horizontal analysis?Category Prior Year Current Year Accounts payable ??? ??? Accounts receivable 320,715 397,400 Accruals 40,500 33,750 Additional paid in capital 500,000 541,650 Cash 17,500 47,500 Common Stock 94,000 105,000 COGS 328,500 428,571.00 Current portion long-term debt 33,750 35,000 Depreciation expense 54,000 54,035.00 Interest expense 40,500 42,155.00 Inventories 279,000 288,000 Long-term debt 339,577.00 401,377.00 Net fixed assets 946,535 999,000 Notes payable 148,500 162,000 Operating expenses (excl. depr.) 126,000 162,171.00 Retained earnings 306,000 342,000 Sales 639,000 849,094.00 Taxes 24,750 47,192.00 What is the current year's entry for long-term debt on a common-sized balance sheet? (ROUND TO 4 DECIMAL PLACES.)SalesOperating costs (excluding depreciation and amortization) EBITDADepreciation and amortization Earnings before interest and taxes Interest Earnings before taxesTaxes (40%)Net income available to common stockholders Common dividendsSEBRINGCORPORATION: BALANCESHEETSFORYEARENDINGDECEMBER31 (FIGURES ARE STATED IN MILLIONS) Assets: Cash and marketable securities Accounts receivableInventories Total current assets Gross Fixed Assets Less DepreciationNet plant and equipment Total assets 2005 2004 $3,600.0 $3,000.0 $3,060.0 $2,550.0 $540.0 $450.0 90.0 75.0 $450.0 $375.0 65.0 60.0 $385.0 $315.0 154.0 126.0 $231.0 $189.0 $15.0 $13.0 2005 2004 $ 36.00 $ 30.00 $ 340.00 $ 250.00 $ 457.00 $ 351.00 $ 833.00 $ 631.00 $ 1,065.00 $ 825.00 $ (165.00) $ (75.00) $ 900.00 $ 750.00 $ 1,733.00 $ 1,381.00 $ 324.00 $ 270.00 $ 201.00 $ 155.00 $ 216.00 $ 180.00 $ 741.00 $ 605.00 $ 450.00 $ 450.00 $ 1,191.00 $ 1,055.00 $ 150.00 $ 150.00 $ 392.00 $ 176.00 $ 542.00 $ 326.00 $ 1,733.00 $ 1,381.00…