Calculate difference in cash flow between the two firms

Assignment Help Financial Management
Reference no: EM131499920

The Rogers Corporation has a gross profit of $702,000 and $277,000 in depreciation expense. The Evans Corporation also has $702,000 in gross profit, with $47,300 in depreciation expense. Selling and administrative expense is $227,000 for each company. 

a. Given that the tax rate is 40 percent, compute the cash flow for both companies

b. Calculate the difference in cash flow between the two firms.

Reference no: EM131499920

Questions Cloud

Evaluate the published experimental research study focusing : psy635:Evaluate the published experimental research study focusing on and identifying the specific threats to validity that apply to the chosen study.
What is the current price of the stock if current dividend : Cox Footwear pays a constant annual dividend. What is the current price of the stock if the current dividend yield is 2.9 percent?
What is the cartel price : Assume that the demand curve for milk is given by Q = 100 - 10P, where P is the price per gallon and Q is the quantity demanded per year.
What will be the future value of that savings account : You are planning to deposit the tax savings in a savings account for the next 14 years at 8 percent, what will be the future value of that savings account?
Calculate difference in cash flow between the two firms : The Rogers Corporation has a gross profit of $702,000 and $277,000 in depreciation expense. Calculate the difference in cash flow between the two firms.
Identify the major concepts-methods utilized in the group : Identify the major concepts/methods utilized in the group. For example, are their books utilized, prayers utilized, principles or guidelines or any rituals util
Explain what factors could have affected the results : What do the results suggest? Explain What factors could have affected the results? How can these results be used to make changes on campus?
Prepare a full set of general purpose financial reports : ACCT5014 Intermediate Corporate Accounting Semester 1 2017 Individual or Group Assignment. TOPIC:  Preparation of Financial Statements and Report. Prepare a full set of general purpose financial reports for 2017
Evaluate the current myers-briggs type indicator : Examine your figure or character from the perspective of Jung's theoretical approach to personality and describe your chosen figure.

Reviews

Write a Review

Financial Management Questions & Answers

  What is the current value of the lease

Your car dealer is willing to lease you a new car for $299 a month for 60 months. Payments are due on the first day of each month starting with the day you sign the lease contract. If your cost of money is 4.9%, what is the current value of the lease..

  Black water corp just issued zero-coupon bonds

Black water Corp just issued zero-coupon bonds with a par value of $1,000. The bond has a maturity of 25 years and a yield to maturity of 8.29%, compounded semi-annually. What is the current price of the bond?

  How much does your payment go down in the better option

You buy a house for $150,000 using a 30-year mortgage at 4.5% interest to be paid monthly.1. What is your payment? 2.Your generous parents agree to give you $10,000 toward your home 4.They offer either to make a down payment (lessening the principal ..

  How much must the company set aside each year for purpose

ACME has a management contract with its newly hired president. The contract requires a lump sum payment of $25 million be paid to the president upon the completion of her first ten years of service. The company wants to set aside an equal amount of f..

  What should be ranyards current stock price

Ranyard's beta is 1.13, and the last dividend per share paid was $4.21. The market risk premium is estimated to be 7.56%, and the real rate of interest is 2.04%. The liquidity risk premium is 0.7%. Analysts expect the company to grow at a rate of 3.5..

  About the weighted average cost of capital

The target capital structure for QM Industries is 37 percent common stock, 9 percent preferred stock, and 54 percent debt. If the cost of common equity for the firm is 18.6 percent, the cost of preferred stock is 10.6 percent, the before-tax cost of ..

  Determine your net return after taxes and inflation

You purchased 1000 shares of stock in Cumberland Software for $3 per share on January 1, 2006. Over the next four years you received 7 cents per share annually in dividends. On December 31, 2009 you sell all your shares of Cumberland Software for $16..

  Compute the book value per share

We know the following about Bob & Co. Total assets are $1000m, E is $700m, cash is $500m and the # of shares is 1m. We estimate that the market value of equity is 2 times the book value of it. Finally, a fire sale of the firm would bring 70% of the v..

  Using the strategy and positioning analysis

Complete the following assignment using the "Strategy and Positioning Analysis" template. Describe the organization's background, industry, and product or service. Describe your target market in detail, including information on the geographic, demogr..

  The bonds make semiannual payments

You are given the following information for Watson Power Co. Assume the company’s tax rate is 35 percent. Debt: 6,000 6.7 percent coupon bonds outstanding, $1,000 par value, 25 years to maturity, selling for 103 percent of par; the bonds make semiann..

  What is karls recognized gain

LO.8, 10 Karl purchased his residence on January 2, 2014, for $260,000, after having lived in it during 2013 as a tenant under a lease with an option to buy clause. On August 1, 2015, Karl sells the residence for $315,000. On June 13, 2015, Karl purc..

  Suppose health care costs

Suppose health care costs in the U.S. account for 10% of current GDP, but are growing at a continuously compounded rate of 4.8% rate,

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