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The Company's Value of Operation




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


Paper#35113 | Written in 18-Jul-2015

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