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FINANCE - Three Misc. Problems




Question;1)TTaa Company had the following data for last year: Earnings before interest and taxes $5,000,000Net depreciation expenses $1,000,000Interest expenses $1,000,000Applicable income tax rate 25%Operating current assets $24,000,000Operating current liabilities $4,000,000Net plant and equipment $28,000,000Estimated after tax cost of capital 10%Assume that the company had only depreciation as non cash items or transactionsFind 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 timesCurrent ratio 4 timesDSO 30 daysROE 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) $40,000FCF is expected to grow at a constant rate of5%The weighted cost of capital (WACC) 10%Current non-operating marketable securities $30,000Long term debt $200,000Preferred stocks 0Outstanding common stocks 20,000The company never paid dividendsFind1. the company's value of operation2. company's total value3. intrinsic value of company?s common equity4. the intrinsic per share stock price


Paper#49598 | Written in 18-Jul-2015

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