What is projected net income

Assignment Help Financial Management
Reference no: EM131545220

A proposed new investment has projected sales of $830,000. Variable costs are 65 percent of sales, and fixed costs are $172,000; depreciation is $73,000. Prepare a pro forma income statement assuming a tax rate of 34 percent. What is the projected net income? (Input all amounts as positive values. Do not round intermediate calculations.) Sales $ Variable costs Fixed costs Depreciation EBT $ Taxes Net income $

Reference no: EM131545220

Questions Cloud

What is the value of three-month european call option : What is the value of a three-month European call option with a strike price of $51?
Percentage change in operating cash flow : What will the percentage change in operating cash flow be?
What is aftertax cash flow from the sale of asset : what is the aftertax cash flow from the sale of this asset?
Considering new three-year expansion project : Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.43 million.
What is projected net income : Prepare a pro forma income statement assuming a tax rate of 34 percent. What is the projected net income?
What is risk-free rate : A non-dividend-paying stock has a current share price of $42.60 and a futures price of $42.95. what is the risk-free rate?
Overall cost of debt is the weighted average : Assume that the overall cost of debt is the weighted average of that implied by the two outstanding debt issues.
Derivative markets problem : What is the highest profit or minimum loss by using one of these two options if the spot price in 6 months is 1.50 per bushel?
Rate of return you expect to earn from buying the shares : what is the rate of return you expect to earn from buying the shares?

Reviews

Write a Review

Financial Management Questions & Answers

  The expected rate of return on the market portfolio

You are considering acquiring a firm that you believe can generate expected cash flows of $28,000 a year forever. However, you recognize that those cash flows are uncertain. a. Suppose you believe that the beta of the firm is 2.2. How much is the fir..

  New supermarkets is major capital budgeting project

Despite increasing revenues over the past three years Whole Foods Market (WFM) has experienced disappointing profits during the same interval. While WFM’s overall revenues increased by approximately 8% in 2015, Opening a series of new supermarkets is..

  Capital structure weights on a market value basis

Dinklage Corp. has 9 million shares of common stock outstanding. The current share price is $81, and the book value per share is $8. The company also has two bond issues outstanding. What are the company's capital structure weights on a book value ba..

  What percentage of your salary must you save each year

If you save a constant percentage of your salary, what percentage of your salary must you save each year?

  Draw the wacc of the firm as a function of its debt ratio

If you are thinking of debt in terms of a (constant) fraction of firm value, would you prefer WACC or APV?- Draw the WACC of the firm as a function of its debt ratio if the only market imperfection is the corporate income taxes.

  What was your total return for past year

You purchased a zero coupon bond one year ago for $116.86. The market interest rate is now 7 percent. If the bond had 31 years to maturity when you originally purchased it, what was your total return for the past year? Assume semiannual compounding.

  The optimal risky portfolio or tangency portfolio

If you do NOT have the option to make a portfolio, which asset you pick? Explain why in two lines max. You call P2 optimal risky portfolio or tangency portfolio

  Explain the meaning of risk-return and risk preferences

Explain the meaning of risk, return, and risk preferences? Why is risk not the chance of taking a loss?

  Businesses prepare pro-forma financial statements

When making capital investment decisions, businesses prepare pro-forma financial statements. Explain pro-forma financial statements and tell what benefit they have to decision-makers. Provide examples.

  What is the present value of the future amount

What is the present value of the following future amount? $495,461 to be received 15 years from now, discounted back to the present at 6.36 percent, compounded daily.

   ay be defined as a measure of uncertainty in set of

1 the value of a financial asset is the .a present value of all of the future cash flows that will be receivedb sum of

  What kind of features or options hedges

What kind of features or options hedges would be called for the following situation? Caufield thrift association finds that it's assets have an average duration of 1.5 years and is liabilities have an average duration of 1.1 years. The ratio of liabi..

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