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?

User Account

All Pages