1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Marizza181 [45]
3 years ago
15

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. The firm also had $4 billion in debt outstanding on the books, rated AA (carrying a yield to maturity of 8%), trading at par (up from $3.8 billion at the end of 1992). The beta of the stock is 1.05, and there were 200 million shares outstanding (trading at $60 per share), with a book value of $5 billion. Union Pacific paid 40% of its earnings as dividends and working capital requirements are negligible. (The treasury bond rate is 7%.)A. Estimate the free cash flow to the firm in 1993.B. Estimate the value of the firm at the end of 1993.C. Estimate the value of equity at the end of 1993, and the value per share, using the DCF approach.
Business
1 answer:
levacccp [35]3 years ago
5 0

Answer

The answer and procedures of the exercise are attached in the following archives.

Explanation  

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

Download xlsx
You might be interested in
Crimson Corp. has a component that is a discontinued operation. The component incurred a loss from operations of $40,000. The co
zavuch27 [327]

Answer:

$60,000 income tax benefit

Explanation:

Since Crimson Corp. had a loss from operations and sold the asset for a loss we know that they lost money with the asset and an income tax benefit was generated. To calculate the income tax benefit we need to add both losses: $40,000 (operation) + $160,000 (sale) = $200,000 in total losses.

$200,000 x 30% = $60,000 income tax benefit

6 0
3 years ago
Most global firms find it is better to have expatriates rather than local staff at the management positions of their foreign ope
pshichka [43]

Answer:A True most global firms find it is better to have expatriates rather than local staff at management positions to their foreign operations because expatriates require less training and development.

8 0
3 years ago
What is the amount of the payments that Ned Winslow must make at the end of each of 8 years to accumulate a fund of $90,000 by t
nekit [7.7K]

Answer:

Amount to be paid annually by Ned Winslow = $8461.35

Explanation:

Fv = <u>A ( 1 + r)∧n  - 1 </u>

              r

90,000   =   <u>A  ( 1 + 0.08)∧8  - 1</u>

                         0.08

90,000 =   <u>A ( 1.8509 - 1)</u>

                       0.08

90,000  =   10.6366A

A =     90,000/10.6366

=   $8,461.35

3 0
3 years ago
Read 2 more answers
Mr Howard opens a restaurant that sells sandwiches and the cost of the material to make the sandwich is 5.00. He wants a 40% mar
Tema [17]

Answer:

$3.56

Explanation:

having the 40% allows you to keep the sandwich price lower

4 0
3 years ago
Alexis, a customer service supervisor at ABC Airlines, typically seeks the full participation of her team members when planning,
Natalija [7]

Answer:

consultation

Explanation:

Influence Tactics are different methods used by leaders in order to influence their subordinates/employees to move or change their current work direction. Therefore based on this scenario it seems as though Alexis is using a tactic known as a consultation. In the context of the nine generic influence tactics, consultation refers to getting employees to participate in the act of planning and making decisions.

3 0
2 years ago
Read 2 more answers
Other questions:
  • You visit an animal shelter and are in a financial position to either adopt a single dog for $500 or donate the $500 to marginal
    9·1 answer
  • What does the boilerplate of a press release do? A. Summarizes the information that is included in the press release B. Lists em
    6·1 answer
  • Why dress code important ?
    11·1 answer
  • If you write a check on a bank to purchase a used Honda Civic, you are using money primarily as
    5·1 answer
  • In 2007, Wagner Associates appropriated $65,000 of retained earnings to satisfy the restrictive covenant of a loan agreement. Wh
    7·2 answers
  • There are three economy situations and two stocks Information is as follows Economy Stock A Stock B Booming 0.3 10 20 Neutral 0.
    8·1 answer
  • Rick's Internet Corporation's balance in Retained Earnings is $30,000. The board of directors directs that $15,000 be appropriat
    8·1 answer
  • Can someone please help me?????
    8·1 answer
  • According to the law of supply, price and quantity move
    6·2 answers
  • The marketing mix comprises four basic marketing strategies, collectively known as the four p's- product, place, price, and popu
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!