Creditors and net new long-term debt

Assignment Help Finance Basics
Reference no: EM131401928

During 2009, Raines Umbrella Corp. had sales of $731,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $575,000, $95,000, and $132,000, respectively. In addition, the company had an interest expense of $98,000 and a tax rate of 35 percent. (Ignore any tax loss carryback or carryforward provisions.) Assume Raines Umbrella Corp. paid out $20,000 in cash dividends, spending on net fixed assets and net working capital was zero, and no new stock was issued during the year. What is the firm's Cash Flow from Assets, Cash Flow to Shareholders, Cash Flow to Creditors and net new Long-term Debt?

Reference no: EM131401928

Questions Cloud

Understanding of the stages of prenatal development : Write a 350- to 700-word reflection in which you describe the following: Your understanding of the stages of prenatal development
What kind of marketing materials do you anticipate : Read And the Soul Shall Dance (pages 220-248 in your textbook) and develop a marketing strategy for a production in your town/city. While a dollar figure is not given, consider that your marketing campaign has a modest budget.
Specifications on a currency futures contract : Discuss the specifications on a currency futures contract.
Describe the background and basic issue of your chosen topic : Describe the background and basic issue of your chosen topic. Describe the basic argument of opposing viewpoints. Identify the strengths and weaknesses of both views. Choose which view you agree with.
Creditors and net new long-term debt : Assume Raines Umbrella Corp. paid out $20,000 in cash dividends, spending on net fixed assets and net working capital was zero, and no new stock was issued during the year. What is the firm's Cash Flow from Assets, Cash Flow to Shareholders, Cash ..
Draw marginal cost marginal revenue and average total cost : Draw marginal cost, marginal revenue, and average total cost curves for a typical perfectly competitive firm and indicate the profit-maximizing level of output and total profit for that firm. Is the firm in long-run equilibrium? Why or why not?
Why was it important to randomize in assigning the subjects : Why was it important to randomize in assigning the subjects to the two groups?- What would be the advantages and disadvantages of using 100 subjects instead of 30?
Why writing annotated bibliographies is an important skill : Begin with an introduction. State the purpose of the paper and explain why writing annotated bibliographies is an important skill
Write an essay about a concept that interests you : "Write an essay about a concept that interests you and that you want to study further. When you have a good understanding of the concept, explain it to your readers, considering carefully what they already know about it and how your essay might a..

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the expected value of wealth

a. What is the expected value of wealth? b. Construct a graph of this utility function. c. Is this person risk averse, risk neutral, or a risk seeker? d. What is this person's certainty equivalent for the prospect?

  There is a selling cost of 330 what is the after-tax cost

a firm is paying an annual dividend of 3.36 for its preferred stock which is selling for 62.70. there is a selling

  Calculate the value of a 5000 par value bond paying quartely

Calculate the value of a $5,000-par-value bond paying quarterly interest at an annual coupon interest rate of 10% and having 10 years until maturity if the required return on similar-risk bonds is currently a 12% annual rate paid quarterly.

  A evaluate the required return for an asset with a beta of

a. evaluate the required return for an asset with a beta of .90 when the risk-free rate and market return are 6 and 10

  Working capital management and health care

Summarize at least three articles on working capital management. Cite a minimum of three primary source references with publication dates less than 18 months old.

  Calculate the cost of purchasing the equipment

The company would depreciate the equipment over 4 years, using straight-line depreciation. A 4-year lease calls for a payment of $350,000 at the beginning of each year. If the equipment is purchased, the company will borrow from its bank at an..

  The initial outlay for purchase and installation of equipmen

You are considering a project which is projected to have revenues in the next five years of $3, $4, $5, $5, and $2 (million). Variable costs are assumed to be 50% of revenue and fixed costs are $1.4 million per year. The firm's WACC is 7%. The initia..

  Computing the firm dividend

Firm X has a tax rate of 30%. The price of its new preferred stock is $63 and its flotation cost is $3.15. The cost of new preferred stock is 12%. What is the firm's dividend?

  Belton is issuing a s1000 par value bond that pays 7

belton is issuing a s1000 par value bond that pays 7 percent annual interest and matures in 15 years. investors are

  Put the rest into an ira

1) You earned a $100,000 bonus.  The IRS deducts 20%.  You put the rest into an IRA (Roth) which earns 3% each year.  You don't pay any additional taxes.  How much do you have after 20 (annual compounding) years?

  How agency problems may lead to non value-maximizing

Explain how agency problems may lead to non value-maximizing motives for mergers. Discuss the various academic theories offered as the rationale for motives induced by the agency problem.

  What is the current value of vandell''s stock

Vandell's free cash flow (FCF0) is $2 million per year and is expected to grow at a constant rate of 5 percent a year; its beta is 1.4. What is the value of Vandell's operations? If Vandell has $10.82 million in debt, what is the current value of Van..

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