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SVEN [57.7K]
3 years ago
15

Lauryn’s Doll Co. had EBIT last year of $56 million, which is net of a depreciation expense of $5.6 million. In addition, Lauryn

’s made $5.3 million in capital expenditures and increased net working capital by $2.7 million. Assume that Lauryn’s has a reported equity beta of 1.7, a debt-to-equity ratio of 0.4, and a tax rate of 30 percent. What is Lauryn’s FCF for the year?
Business
1 answer:
Kaylis [27]3 years ago
7 0

Answer:

$36.8 million

Explanation:

The computation of the free cash flow is shown below:

= EBIT × (1 -Tax Rate) + Depreciation & Amortization - Change in Net Working Capital - net capital Expenditure.

= $56 million × ( 1 - 0.30) + $5.6 million - $2.7 million - $5.3 million

= $39.20 million + $5.6 million - $2.7 million - $5.3 million

= $36.8 million

All other information which is given is not relevant. Hence, ignored it

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Which of the following statements are true regarding​ externalities? ​(Check all that apply​.) A. Deadweight loss can be either
ella [17]

Answer:

d

Explanation:

A good has positive externality if the benefits to third parties not involved in production is greater than the cost. an example of an activity that generates positive externality is research and development. Due to the high cost of R & D, they are usually under-produced. Government can encourage the production of activities that generate positive externality by granting subsidies.

A good has negative externality if the costs to third parties not involved in production is greater than the benefits. an example of an activity that generates negative externality is pollution. Pollution can be generated at little or no cost, so they are usually overproduced. Government can discourage the production of activities that generate negative externality by taxation. Taxation increases the cost of production and therefore discourages overproduction. Tax levied on externality is known as Pigouvian tax.

Government can regulate the amount of externality produced by placing an upper limit on the amount of negative externality permissible

Coase theorem has been proposed as a solution to externality. According to this theory, when there are conflicting property rights, bargaining between parties involved can lead to an efficient outcome only if the bargaining cost is low

Another solution to negative externality is through the activities of charities. Charities can raise donations to limit or regulate the activities of firms that constitutes a negative externality.

6 0
3 years ago
A business received an offer from an exporter for 10,000 units of product at $13.50 per unit. The acceptance of the offer will n
OverLord2011 [107]

Answer:

Effect on income= $15,000 increase

Explanation:

Giving the following information:

A business received an offer from an exporter for 10,000 units for $13.50 per unit.

Unit manufacturing costs:

Variable 12

<u>Because it is a special offer and there is unused capacity, we will not take into account the fixed costs.</u>

Effect on income= number of units*unitary contribution margin

Effect on income= 10,000*(13.5 - 12)

Effect on income= $15,000 increase

4 0
3 years ago
List three factors to consider when choosing a financial institution
jasenka [17]

When you are considering a financial institution you should consider what type of accounts you want to have, how much money you have and if you want to invest. Different financial institutions offer different rates and benefits for their members so it makes sense to figure out your options based on what you want in return.

8 0
3 years ago
Shiffon Electronics manufactures music players. Its costing system uses two cost​ categories, direct materials and conversion co
lys-0071 [83]

Answer:

1,100 units; 1,050 units

Explanation:

Calculation to determine the equivalent units for direct materials and conversion​ costs, respectively, for​ March

DIRECT MATERIALS CONVERSION COSTS L

Completed and transferred out

1,000 units 1,000 units

(300 units+800 units - 100 units)

Add Work in process, ending

100 units 50 units

(50% Complete*100 units=50 units)

Total equivalent units

1,100 units 1,050 units

Therefore the equivalent units for direct materials and conversion​ costs, respectively, for​ March will be 1,100 units; 1,050 units

4 0
3 years ago
A business usually becomes listed in the Fortune 500 during its _______ stage.
Deffense [45]
A business usually becomes listed in the Fortune 500 during its SUCCESSFUL stage.
Fortune 500 refers to the yearly list of the best and the biggest 500 companies that are doing very well in the US market world as judged by the Fortune Magazine. These companies usually have huge asset balance, which is still growing in size. The major criteria used to choose the qualified companies is the size of their revenues.
7 0
4 years ago
Read 2 more answers
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