Calculate fields-struthers investment in operating capital

Assignment Help Financial Management
Reference no: EM131575510

You are considering an investment in Fields and Struthers, Inc., and want to evaluate the firm’s free cash flow. From the income statement, you see that Fields and Struthers earned an EBIT of $66 million, had a tax rate of 30 percent, and its depreciation expense was $5 million. Fields and Struthers’ gross fixed assets increased by $32 million from 2014 and 2015. The firm’s current assets increased by $28 million and spontaneous current liabilities increased by $16 million.

Calculate Fields and Struthers’ operating cash flow for 2015. (Enter your answer in millions of dollars rounded to 1 decimal place.)

Calculate Fields and Struthers' investment in operating capital for 2015. (Enter your answer in millions of dollars.)

Calculate Fields and Struthers' free cash flow for 2015. (Enter your answer in millions of dollars rounded to 1 decimal place.)

Reference no: EM131575510

Questions Cloud

What is bank cost of preferred stock : Holdup Bank has an issue of preferred stock with a $9 stated dividend that just sold for $85 per share. What is the bank's cost of preferred stock?
Estimate of the company cost of equity : Stock in Country Road Industries has a beta of 1.41. what is your best estimate of the company's cost of equity?
Beginning-of-year balance for gross fixed assets : Calculate the beginning-of-year balance for gross fixed assets.
Using the capital budgeting method : Suppose a businessman has an idea to build an electric motor cycle. Using the capital budgeting method, is this project financially worthwhile?
Calculate fields-struthers investment in operating capital : Calculate Fields and Struthers' investment in operating capital for 2015.
How does management greed influence budget decisions : How does management greed influence budget decisions?
What is company cost of equity capital : If the risk-free rate is 6 percent and the expected return on the market is 14 percent, what is the company's cost of equity capital?
What is company cost of equity : The Down and Out Co. just issued a dividend of $2.31 per share on its common stock. what is the company's cost of equity?
What is the project payback-what is the project mirr : Project L costs $45,000, its expected cash inflows are $15,000 per year for 8 years and its WACC is 10%. What is project's payback? What is the project's MIRR?

Reviews

Write a Review

Financial Management Questions & Answers

  Important determinant of a household consumption spending

What is the most important determinant of a household's consumption spending?

  What net investment is required to acquire the icx system

What net investment is required to acquire the ICX system and replace the old system?- Compute the annual net cash flows associated with the purchase of the ICX system.

  Evaluate the company working capital adequacy

DELTA AIRLINES Evaluate the company’s working capital adequacy, its cash flow, its financing history (has it borrowed money from financial institutions, or issued bonds, stocks, etc.) and future plans If the company issues stock, is it growth or inco..

  Target debt–equity ratio-annual cash flows

Blue Angel, Inc., a private firm in the holiday gift industry, is considering a new project. The company currently has a target debt–equity ratio of .35, but the industry target debt–equity ratio is .30.  The project will be financed at Blue Angel’s ..

  Portfolio analysis-calculate the expected return

Portfolio analysis-Calculate the expected return over the 4-year period for each of the three alternatives

  Assume the swap bank is quoting five-year dollar interest

Do problem 1 over again, this time assuming more realistically that a swap bank is involved as an intermediary. Assume the swap bank is quoting five-year dollar interest rate swaps at 10.7% - 10.8% against LIBOR flat.

  What is booths additional funds needed for coming year

What is Booth's additional funds needed (AFN) for the coming year?

  Average accounting return-internal rate of return

There are several measures available to financial managers to assist them in deciding whether a specific project should be undertaken for the benefit of the company, including Average Accounting Return, Internal Rate of Return (IRR), Net Present Valu..

  The optimum capital structure and value of the firm

A firm has an operating profit of $300,000, interest of $35,000, and a tax rate of 40 percent. The firm has an after tax cost of debt of 5 percent and a cost of equity of 15 percent. The firm's target capital structure is set at a mix of 40 percent d..

  Is the oil land partnership property-why

James and Suzanne engaged in the grocery business as partners. In one year they earned considerable money, and at the end of the year they invested a part of the profits in oil land, taking title to the land in their names as tenants in common. The i..

  Does the offer sound too good to be true

Jay Wechsler agrees to purchase a car from a local dealer, the Con Car Co. The purchase price is $15,000. Jay has the cash to pay the entire amount and wants to do so. Con's sales manager ises the following argument to convince him to finance the car..

  Find future values of these ordinary annuities

Find the future values of these ordinary annuities. Compounding occurs once a year.

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