Company had no amortization charges also no non-operating

Assignment Help Finance Basics
Reference no: EM139406

Q. XYZ newly reported $48,909 of sales, $16,389of operating costs other than reduction, also $5,402 of depreciation. Company had no amortization charges also no non- operating income. It had $8,000 of bonds outstanding which carry the 10% interest rate. Compute the firm's taxable income, or earnings before taxes (EBT)?

XYZ's EBIT is= $12 million. Depreciation expense is= $0.5 million also interest expense is $0.5 million. Corporate tax rate is= 30%. Company has 10 million in operating current assets also $3 million operating present liabilities. It has= $12 million in net plant also equipment. After-tax cost of capital (WACC) is 8%. Suppose that only non-cash item is reduction. Total net operating capital last year was= $15 million.

i) Find out the company's free cash flow for the year?

ii) Donner United has total owner's equity of= $18,800. Firm has present assets of= $23,100, present liabilities of= $12,200, also total assets of= $36,400. Find out the value of long-term debt?

Reference no: EM139406

Questions Cloud

Savings account for each of five years : You plan to deposit $250 into the savings account for each of five years, beginning 1 year from now. Interest rate is 9% compounded annually. Find out the future value in each of the following cases.
Find out the present value of given each petuities : Find out the present value of given each petuities. Each petuity with $1000 annual payment discounted.
Compounded semi-annually for first four years : invested for total 6 years at 6% compounded semi-annually for first four years followed by 12%compounded quarterly for final 2 years.
Business owners equity at commencement of year : If opportunity cost of capital is 14%, compute the present value of business owners' equity at commencement of year.
Company had no amortization charges also no non-operating : Operating costs other than reduction, also $5,402 of depreciation. Company had no amortization charges also no non- operating income.
National newsmagazine publishes : National newsmagazine publishes the article on efforts to limiting smoking in public places.
Shaw for breaking of contract : On April 14, 1994, Bill Shaw, retired policeman, offered to sell Thurgood his 1965 Mustang convertible for= $1,000.
Deduce formula for weights of stocks : Deduce formula for weights of stocks A also B at which variance of portfolio P is minimal.
Goal is to generate a portfolio with the expected return : If your goal is to generate a portfolio with the expected return of 14.25%, how much money will you invest in stock A. In Stock B.

Reviews

Write a Review

 

Finance Basics Questions & Answers

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Eva analysis

Using an EVA analysis, should Laidlaw acquire the new piece of equipment?

  Star wall street trader is negotiating his 1st contract

A star Wall Street trader is negotiating his 1st contract. His opportunity cost is= 10%. He has been presented the 3 year contracts which are given below.

  Explain fully the reasons for your choice

Could this be balance sheet for St. Ann's Credit Union or Bank of America. Explain fully the reasons for your choice.

  How would investors and management view eva and fcf?

How would investors and management view EVA and FCF? Try one that you are familiar with-you shop at their store, eat at their restaurants, or wear their clothes. On their Web site, try to find their annual financial report.

  Calculation of cost of capital for western communications

Calculation of cost of capital for Western Communications

  Calculate the risk

Calculate the risk and expected return for each asset.

  Determine the npv at time period zero of the cash flows

Recall that this step determines the amount that could be deposited today, to satisfy the education funding need

  Determine the effective quarterly rate

Determine the effective quarterly rate and the nominal annual rate, What is the spreadsheet function to find the nominal annual rate above

  Replacement cost of the similar house

Replacement cost of the similar house, with similar materials also quality is= $240,000. House is totally destroyed in the tornado.

  A life insurance policy with the taxable value

A life insurance policy with the taxable value of= $450 or a non-taxable increase in health insurance coverage valued at= $340.

  Compute current value of futures position

Compute current value of futures position based on the rate calculated above plus the 2 points.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd