Reference no: EM131301982
Occidental Petroleum produces and markets crude oil. The following are selected numbers from the financial statements for 1992 and 1993 (in millions).
1992
Revenues $8,494.0, (Less) Operating Expenses ($6,424.0), (Less) Depreciation ($872.0), = EBIT $1,198.0, (Less) Interest Expenses ($510.0), (Less) Taxes ($362.0), = Net Income $326.0, Working Capital ($45.0), Total Debt $5.4 billion
1993
Revenues $9,000.0, (Less) Operating Expenses ($6,970.0), (Less) Depreciation ($860.0), = EBIT $1,170.0, (Less) Interest Expenses ($515.0), (Less) Taxes ($420.0), = Net Income $235.0, Working Capital ($50.0), Total Debt $5.0 billion
The firm had capital expenditures of $950 million in 1992 and $1 billion in 1993. The working capital in 1991 was $190 million, and the total debt outstanding in 1991 was $5.75 billion. There were 305 million shares outstanding, trading at $21 per share.
B) Estimate the cash flows to the firm in 1992 and 1993.
What should have been the exchange rate
: The argentine peso was fixed through a currency board at Ps1.00/$ throughout the 1990s. In january 2002, the Argentine peso was floated. On January 29, 2003, it was trading at Ps3.20/$. What should have been the exchange rate in January 2003 if PPP(P..
|
Preferred stock generally has a stated liquidation value
: Preferred stock can be callable. Preferred stock generally has a stated liquidation value of $1,000 per share. Dividend payments to preferred shareholders are tax-deductible expenses for the issuing firm.
|
What annual rate did the coin appreciate from
: A coin that was featured in a famous novel sold at auction in 2014 for $9,786,000. The coin had a face value of $15 when it was issued in 1794 and had previously been sold for $140,000 in 1973. At what annual rate did the coin appreciate from its fir..
|
What is its sustainable rate of growth
: Stop and Shop Supermarkets has a 4.5% profit margin and a 15% dividend payout ratio. The total asset turnover is 1.6 and its debt-equity ratio is 0.5. What is its sustainable rate of growth?
|
Occidental petroleum produces and markets crude oil
: Revenues $8,494.0, (Less) Operating Expenses ($6,424.0), (Less) Depreciation ($872.0), = EBIT $1,198.0, (Less) Interest Expenses ($510.0), (Less) Taxes ($362.0), = Net Income $326.0, Working Capital ($45.0), Total Debt $5.4 billion.
|
Differences between simple interest and compound interest
: What are the differences between simple interest and compound interest. With regards to money: What are the differences between future value and present value? What considerations do you need to take when considering "time value of money"?
|
Game theory explained
: Read "Game Theory Explained," located on the PBS website. Discuss your perspective on the use of game theory. How do "Nash Equilibrium" and the idea of one "player" impacting another "player" within an organization affect the economic decisions and g..
|
Union has constant growth rate
: Union Pacific Railroad reported net income of $770 million in 1993, after interest expenses of $320 million. (The corporate tax rate was 36%.) It reported depreciation of $960 million in that year, and capital spending was $1.2 billion. Estimate the ..
|
Dividends and working capital requirements are negligible
: Union Pacific Railroad reported net income of $770 million in 1993, after interest expenses of $320 million. (The corporate tax rate was 36%.) It reported depreciation of $960 million in that year, and capital spending was $1.2 billion. Union Pacific..
|