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SVEN [57.7K]
4 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]4 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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A ____ is an amount of money. Usually, has a specific purpose and is stored in one place, such as a bank account.
Leviafan [203]
Accounting is the answer
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4 years ago
If a business finds out that its older consumers value different things than its younger consumers, it might have an opportunity
vlabodo [156]

Answer:

demographic segmentation

Explanation:

Based on the information provided within the question it can be said that in this scenario they might have an opportunity to use demographic segmentation. This type of market segmentation focuses on a populations factors of age, race, religion, gender, family size, ethnicity, income, and education, and hobbies, in a certain location. Which their values falls under the categories of education, religion, and hobbies.

7 0
4 years ago
Read 2 more answers
The Stationery Company purchased merchandise on account from a supplier for $9,100, terms 2/10, n/30. The Stationery Company ret
yaroslaw [1]

Answer:

$7,840

Explanation:

The terms 2/10, n/30 means that if the amount is paid in maximum 10 days, the client will receive a 2% discount. If he/she doesn't make the payment in this period, the total amount has to be paid within 30 days.

As Stationary Company returned merchandise with an invoice amount of $1,100, you have to subtract this amount from the initial value of the merchandise they purchased:

$9,100-$1,100= $8,000

Then, you have to calculate the 2% discount they will get from the $8,000 for paying the invoice within the discount period:

$8,000*2%= $160

$8,000-$160= $7,840

According to this, the answer is that the amount of cash required for the payment is $7,840.

7 0
4 years ago
Bryce Corporation has pretax accounting income of $100,000. Bryce has interest on municipal bonds of $7,000. Depreciation for ta
Ket [755]

Answer:

$90,000

Explanation:

It is given that :

The pretax accounting income of Bryce Corporation               100,000

The interest on the municipal bonds                                            - 7,000

The depreciation                                                                            - 5,000

The difference in bad debt expense (3000-1000)                   <u>    +2,000</u>

So the total income of Bryce Corporation                                  $ 90,000                      

4 0
3 years ago
In analyzing company operations, the controller of the corporation found a $250,000 favorable flexible-budget revenue variance.
goldenfox [79]

Answer: C. changes in unit selling prices.

Explanation:

The options given are:

a. the total flexible budget variance

b. the total static budget variance

c. changes in unit selling prices

d. changes in the number of units sold

Based on the information given, the variance can be wholly explained by changes in unit selling prices.

This is due to the fact that the flexible budget revenue variance is calculated and gotten as the difference between the budgeted revenue and the actual revenue at thesame activity level.

Therefore, the number of units will be thesame in both the actual results and the flexble budget. Then, the difference will be as a result of the change in the unit selling price.

8 0
3 years ago
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