Companies can identify their competitors from both _______

Grove Inc. is a publicly traded chemical company that reported the following financial statements for the most recent year. $1,0

Oksi-84 [34.3K]

Answer:

FCFF = $335.50

Explanation:

Formula of Free Cash Flow to the firm ( FCFF) :

FCFF= Net Income+ Interest(1- tax rate)+ Depreciation+ working capital changes- capital investment

Now let us note some critical points and assumptions which are necessary to solve the question.

As the question says that the company will maintain its existing after tax return on capital invested next year, hence that means that the net income for the next year remains the same, which is $140.

It is also that the company expects it's Operating Income(EBIT) to increase by 6% every year, hence it's operating income(EBIT) for the next year will be $250*(1.06)= $265

Tax rate remains the same, that is, (60/200*100)= 30%

As there is no details with respect to working capital changes and any capital investment made, hence it is assumed to zero changes and no additional investment.

It is assumed that the depreciation method being followed is straight line method, hence depreciation value next year would be the same, that is, 150

Now let's finalise our income statement:

EBIT = $265 given in the question

Interest = ( $65) backward calculation

Taxable Income = $200

Taxes (30%) = ($60)

Net income = $140 given in question.

Hence our FCFF will be :

$ 140 + $65*(1-0.30) + $150 = $335.50

8 0

3 years ago

Tancredi Corporation has two manufacturing departments--Machining and Customizing. The company used the following data at the be

olganol [36]

Answer:

Results are below.

Explanation:

<u>First, we need to calculate the predetermined overhead rate:</u>

Fixed overhead= 33,500

Total variable overhead= (1.8*5,000) + (3*5,000)= 24,000

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= (33,500 + 24,000) / 10,000

Predetermined manufacturing overhead rate= $5.75

<u>Now, we can determine the total cost for each Job:</u>

Direct material= $12,800

Direct labor= $17,600

Allocated overhead= (3,400 + 2,000)*5.75= $31,050

Total cost= $61,450

Direct material= $7,000

Direct labor= $1,600

Allocated overhead= (1,600 + 3,000)*5.75= $26,450

Total cost= $35,050

6 0

3 years ago

A 20-year maturity bond with par value $1,000 makes semiannual coupon payments at a coupon rate of 8%. a. Find the bond equivale

kipiarov [429]

Answer:

The answer is 4.26 percent

Explanation:

This is a semiannual paying coupon.

N(Number of periods) = 40 periods ( 20 years x 2)

I/Y(Yield to maturity) = ???

PV(present value or market price) = $950

PMT( coupon payment) = $40 ( [8 percent÷ 2] x $1,000)

FV( Future value or par value) = $1,000.

We are using a Financial calculator for this.

N= 40; PMT = 40; FV= $1,000; PV= -950 CPT I/Y = 4.26

Therefore, the bond's yield-to-maturity is 4.26 percent

7 0

3 years ago

company pays each of its workers on a per diem basis. if another worker is hired, fixed costs will increase while variable cost

JulijaS [17]

A company pays each of its workers on a per diem basis. If another worker is hired,

variable costs will increase while

fixed cost will remain the same.

<h3>What is the difference between fixed and variable?</h3>

The amount of product generated determines the fluctuation in variable costs. Raw materials, labor, and commissions are examples of variable expenses. Regardless of the level of production, fixed expenses stay constant. Lease and rental payments, insurance, and interest payments are fixed costs.
Costs that change as the volume increases are known as variable costs. Raw materials, piece-rate labor, production supplies, commissions, shipping expenses, packing costs, and credit card fees are a few examples of variable costs. The "Cost of Goods Sold" is the name given to the variable costs of production in some accounting statements.
Some examples of fixed costs are rent, lease payments, salary, insurance, property taxes, interest fees, depreciation, and possibly certain utilities. For instance, a new business owner would probably start off with fixed costs like rent and managerial wages.
Property taxes, rent, salary, and the cost of benefits for non-sales and management staff are examples of fixed costs. They are one of the three categories of expenses that most companies face. Costs that are changeable or semi-variable are the others.

A company pays each of its workers on a per diem basis. If another worker is hired,

variable costs will increase while

fixed cost will remain the same.

To learn more about fixed cost, refer to:

brainly.com/question/3636923

#SPJ4

5 0

1 year ago

A country with a relatively low level of real GDP per person is considering adopting two policies to promote economic growth.The

IceJOKER [234]

Answer:

The correct answer is the letter d. Neither the first nor the second.

Explanation:

GDP (gross domestic product) growth is influenced by various factors, consumption, investment, technology, external sector, etc. The policy of restricting foreign trade by placing barriers to trade has reduced GDP as it burdens one of the drivers of economic growth, for example by reducing exports to the rest of the world and thus GDP. Similarly, restricting foreign portfolio investment contributes to non-GDP growth, as foreign investments play an important role in increasing companies' capitalization, helping them to make more investments. Therefore, both economic policies are wrong.

4 0

3 years ago

Companies can identify their competitors from both​ ________ points of view.

Companies can identify their competitors from both ________ points of view.