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Zanzabum
4 years ago
15

Tropetech Inc. has an expected net operating profit after taxes, EBIT(1 – T), of $1,200 million in the coming year. In addition,

the firm is expected to have net capital expenditures of $180 million, and net operating working capital (NOWC) is expected to increase by $15 million. How much free cash flow (FCF) is Tropetech Inc. expected to generate over the next year?
Business
1 answer:
Nata [24]4 years ago
7 0

Answer:

$1,005 million

Explanation:

The computation of the free cash flow is shown below:

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

= $1,200 million - $180 million - $15 million

= $1,005 million

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

Since the value of the depreciation and amortization is not given. So, we do not consider it

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Imagine that the price elasticity of demand for non-mandatory veterinary vaccines for your dog is unit elastic. Initially, price
aliya0001 [1]

Answer:

c. $100,000

Explanation:

Since in the question it is given that the price elasticity of demand is unit elastic that means it is equal to one plus the total revenue do not changed if there is a change in price and the quantity demanded

So in this case, the new revenue is

New revenue = Price × Quantity

= $100 × $1,000

= $100,000

Hence, the correct option is c.

5 0
3 years ago
Which type of scientific statement is defined as a hypothess D
Lilit [14]
A hypothesis is a educated guess made about the predicted outcome of the experiment. They are made before starting the scientific experiment.
4 0
3 years ago
Read 2 more answers
Snowdrops Co. is growing at a very fast rate. As a result, the company expects to increase its dividend to $0.50, $1.00, $1.50,
erik [133]

Answer:

B. $19.09

Explanation:

D1 = $0.50

D2 = $1.00

D3 = $1.50

D4 = $2.00

D5 = D4(1+g)

and <em>g</em> is given as 6%

D5 = 2.00(1.06) = 2.12

Next, find the PV of each dividend at a discount rate of 14%

PV(D1) = 0.50/(1.14) = 0.4386

PV(D2) = 1.00/(1.14²) = 0.7695

PV(D3) = 1.50/(1.14³) = 1.0125

PV(D4) = 2.00/(1.14^4) = 1.1842

Find the present value of the terminal value (D5 onwards);

PV(D5 onwards) = \frac{\frac{2.12}{0.14-0.06} }{1.14^{4} } \\ \\ =\frac{26.5}{1.68896} \\ \\ =15.6901

Sum up the PVs to find the current value of the stock;

= 0.4386 + 0.7695 + 1.0125 + 1.1842 + 15.6901

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Therefore, the current value = $19.09

8 0
3 years ago
A company receives $360 for a 12-month trade magazine subscription on August 1. The adjusting entry on December 31 is a debit to
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Answer:

The answer is true

Explanation:

Unearned Subscription Revenue is the revenue that has not been earned but the money has been received ahead of the service. It is termed as a liability because the customer can terminate the contract anytime.

As the customer enjoys the service, subscription revenue will be recognized monthly by the calculated proportion and this unearned subscription revenue will decrease by the same amount.

12-month subscription is $360

Therefore, the subscription charge for each month will be $30($360/12months).

August 1 through December 31 is 5 months.

Therefore, the amount for adjusting entry on this day will be $150(5 months x $30).

Note: Debit increases asset and expenses while credit decreases it. And debit decreases liability, equity, revenue while credit increases it.

8 0
3 years ago
When making a product line decision, a company may focus on lost contribution margin and avoidable fixed costs or prepare compar
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A company may focus on lost contribution margin or prepare comparative income statement when making a product line decision

<h3>What is income statement?</h3>

An income statement can be regarded as financial statement which helps to display company's income and expenditures.

It is a financial statement that shows you the company's income and expenditures. It also shows whether a company is making profit or loss.

Hence, when making a product line decision, a company may focus on lost contribution margin and avoidable fixed costs or prepare comparative income statement.

Learn more about income statement here : brainly.com/question/21851842

7 0
3 years ago
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