What will be the forecast for roberts'' year

Assignment Help Finance Basics
Reference no: EM131106420

At the end of last year, Roberts Inc. reported the following income statement (in millions of dollars):
Sales $3,000
Operating costs excluding depreciation 2,450
EBITDA $ 550
Depreciation 250
EBIT $ 300
Interest 125
EBT $ 175
Taxes (40%) 70
Net income $ 105

Looking ahead to the following year, the company's CFO has assembled this information:

• Year-end sales are expected to be 10% higher than the $3 billion in sales generated last year.

• Year-end operating costs, excluding depreciation, are expected to equal 80% of yearend sales.

• Depreciation is expected to increase at the same rate as sales.

• Interest costs are expected to remain unchanged.

• The tax rate is expected to remain at 40%.

On the basis of that information, what will be the forecast for Roberts' year-end net income?

Reference no: EM131106420

What is the irr of each alternative

what is the present value of costs of each alternative? Round your answers to the nearest dollar, if necessary. Enter your answers as a whole number. For example, do not ent

Is the valuation of the total cash flows more uncertain

Both suppliers are very reputable and there would be no exposure to country risk when using either supplier. Is the valuation of the total cash flows of Carlisle Co. more unce

What rate of return will you earn on these money multiplier

A leading broker has advertised money multiplier certificates that will triple your money in nine years; that is if you buy one for $333.33 today, it will pay you $1,000 at

What are the total returns

What is the yield to maturity on a 10-year, 9% annual coupon, $1,000 par value bond that sells for $887.00? That sells for $1,134.20? What does a bond selling at a discount

Example of a situation in which you believe

Give an example of a situation in which you believe a Type I Error is more serious. Give an example of a situation in which you believe a Type II Error is more serious. In e

What is the project apv

A project costs $15 million and is expected to produce cash flows of $3 million a year for 10 years. The opportunity cost of capital is 14%. If the firm has to issue stock t

Which option strategy would you pursue

Which option strategy would you pursue? Be specific, thus I want you to look up current options for Duke Power and tell me which option you would choose, why, and how much y

Current health care financing and funding models

Compare the three (3) current health care financing and funding models (i.e., employee based, government based, and individual based) used with the healthcare delivery syste


Write a Review

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