How much free cash flow did Wells generate is $1,770
First step is to Determine the Operating income (EBIT)
Sales $8,250
Less Operating costs excluding depreciation ($4,500)
Less Depreciation ($950)
Operating income (EBIT)$2,800
($8,250-$4,500-$950)
Now let determine How much free cash flow did Wells generate using this formula
FCF = EBIT(1 -Tax rate) + Depreciation- Required capital expenditures -Required addition to net operating working capital
Let plug in the formula
FCF = $2,800×(1-0.35)+$950 -$750 -$250
FCF = $2,800×(0.65)+$950 -$750 -$250
FCF = $1,820 + $950 -$750 -$250
FCF = $1,770
Inconclusion How much free cash flow did Wells generate is $1,770
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Answer: Quick stress relief: the ability to quickly relieve stress in the moment.
Emotional awareness: the ability to remain comfortable enough with your emotions to react in constructive ways, even in the midst of a perceived attack.
Explanation:
Answer:
You should "Debit" one account in your general ledger and "Credit" another.
Explanation:
Example - you receive an invoice from your vendor for $100,000 (assuming non-VAT transaction). Your journal entry would look the following:
Debit: Expense $100,000
Credit: Accounts Payable $100,000
Answer:
D. Recognised $13.5 million gross profit on the project in 2021.
Explanation:
Firstly, we will begin by getting how much of the project has been completed
$35 million of the cost has been incurred and a further $83 million left
This means that the total cost would be;
= $35 + $83
= $118
If $35 million of the cost has been incurred, we can find out how far the project is using its proportionality .
= 35/118
= 0.297
= 29.7% of the project has been completed.
The above implies that we can apportion 29.7% of the contract price to 2021.
= 29.7% × $163 million
= $48.411 can be recognised as revenue
The cost till date is $35 and there were no costs in the previous year as this is the first year of the project.
Hence, the gross profit would be;
= $48.411 million - $35 million
= $13.5 million
A firm has a debt-equity ratio of 1, a cost of equity of 16 percent, and a cost of debt of 8 percent. if there are no taxes or other imperfections, what is its unlevered cost of equity? 8%.
<h3>What do you mean debt/equity ratio?</h3>
- The debt-equity ratio serves as a gauge for how equally creditors and owners or shareholders contributed to the capital used by the company. The debt-equity ratio is the simple ratio of the company's long-term debt and equity capital.
- The debt-to-equity (D/E) ratio, which measures a company's financial leverage, is determined by dividing all of its obligations by its shareholders' value.
- Your "debt ratio" is determined by dividing your income by all of your debts. The banks are interested in this. A debt-to-income ratio of around 30% is ideal. 40% and above is crucial. You might not get a loan from a lender.
- The debt-to-equity (D/E) ratio displays the level of debt held by a corporation. Lenders and investors view a high D/E ratio as dangerous since it implies that the company is funding a sizable portion of its prospective growth through borrowing.
What is its unlevered cost of equity?
Levered cost of equity = 16%
Since Debit Equity ratio is 1, Weight of Equity as well as Weight of Debt will be .50 (i.e. Debt 50% and Equity 50%)
Unlevered Cost of Equity = 16% *(0.5÷ 0.5+0.5)
= 16% * (0.5 ÷ 1)
=8%
A firm has a debt-equity ratio of 1, a cost of equity of 16 percent, and a cost of debt of 8 percent. if there are no taxes or other imperfections, what is its unlevered cost of equity? 8%.
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