Solution-Company incremental operating cash flow

Company incremental operating cash flow

Reference no: EM131066522

Company Y is trying to add a new line of production that would produce 3000 jars of fruits a year, and generate $3.5 in revenue for each jar sold. The gross margin is estimated to be 23%. Also, Company Y will have to pay 3% commissions to sales team to promote and sell the product. Given that depreciation expense equals $2000, and its tax rate is 36%, what is the company' s incremental operating cash flow?

Reference no: EM131066522

Questions Cloud

Purchase of a new piece of equipment : Company X is considering the purchase of a new piece of equipment to be used in their manufacturing plant. The equipment will cost $6,000 and will increase annual cash inflow by $2,200.

What is the company net income : What is the company's net income for 2015? (Do not round intermediate calculations. A negative answer should be indicated by a minus sign.)

What is the firm cost of equity if its debt cost : The Hatfields Corporation is a zero growth firm with an expected EBIT of $250,000 and corporate tax rate of 40 percent. Hatfields uses $1,000,000 of debt financing, and the cost of equity to an unlevered firm in the same risk class is 15%. a) What is..

All the equity used is from reinvested earnings : Quinlan Enterprises stock trades for $50 per share. It is expected to pay a $2.50 dividend at year end (D1 = $2.50), and the dividend is expected to grow at a constant rate of 5.50% a year. The before-tax cost of debt is 7.50%, and the tax rate is 40..

Company incremental operating cash flow : Also, Company Y will have to pay 3% commissions to sales team to promote and sell the product. Given that depreciation expense equals $2000, and its tax rate is 36%, what is the company' s incremental operating cash flow?

Summarize call provisions and sinking fund provisions : Summarize call provisions and sinking fund provisions. Explain how these types of provisions individually make bonds more or less risky for a) an investor, and b) the issuer.

Please share your thoughts on fund expenses : Please share your thoughts on Fund Expenses. Would you be more likely to invest in a level load, front end, or back end load fund? Why? Do you believe the fees in active management are worth it in certain circumstances? Describe when

Do you have any concerns about new standards systems : Do you have any concerns about new standards and assessment systems creating inequitable school practices or experiences for K-12 students?

Valuation of apple stock : What would you say about the valuation of Apple's stock currently relative to Google and Facebook using only the P/E multiples apparoch?

User Account

All Pages

Company incremental operating cash flow

Reference no: EM131066522

Reference no: EM131066522

Questions Cloud

Reviews

Write a Review

Finance Basics Questions & Answers

Purpose of auditing-other assurance services

What are the major advantages of futures contracts compared

What is the total ordering cost

For threats or commitments to be effective

Ow many shares of stock will be outstanding after the stock

Question on capital budgeting techniques

Direct method or stop-down method for cost allocation

What amount for the governmental activities accounts

Assume that you are a portfolio manager for a large mutual

Decision making question on investment

Discussing global currency

The firm is considering by using debt in its capital

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT