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Ilya [14]
3 years ago
8

Next year, Flying Cow is expected to earn an EBIT of $4,000,000, and to pay a federal-plus-state tax rate of 30%. It also expect

s to make $1,000,000 in new capital expenditures to support this level of business activity, as well as $45,000 in additional net operating working capital (NOWC).
Given these expectations, it is reasonable to conclude that next year Flying Cow will generate an annual free cash flow (FCF) of ___________ (rounded to the nearest whole dollar).
Business
1 answer:
lara [203]3 years ago
3 0

Answer:

$1,755,000

Explanation:

The computation of the free cash flow is shown below:

Free cash flow = EBIT × (1 -Tax Rate) - Change in Net Working Capital - net capital Expenditure

= $4,000,000 × (1 - 0.30) - $45,000 - $1,000,000

= $2,800,000  - $45,000 - $1,000,000

= $1,755,000

We simply applied the above formula to determine the free cash flow

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The Red Bud Co. pays a constant dividend of $2.00 a share. The company announced today that it will continue to do this for anot
kiruha [24]

Answer:

<u>Share of this stock worth today if the required rate of return is 7.6 percent is $3.59</u>

Explanation:

stock worth today = 2/1.076 + 2/1.076^2

stock worth today = $ 3.59

4 0
3 years ago
Susan asked mary to turn up the radio, so mary increased the volume from level 5 to level 7. mary could hear the difference but
den301095 [7]
They differ in their difference threshold. This is being defined when their sensory stimuli is different, making the individual perceive them also, as different. This occurs in the scenario given above for Susan couldn't hear the level 7 volume when Mary could already hear it.
8 0
3 years ago
Given the following two potential locations to construct an urgent care, use incremental B/C ratio to determine which location,
White raven [17]

Answer:

The incremental benefit cost ratio is less than 1 therefore we must select site 1.

Explanation:

The incremental BCR can be determined using the following formula

\Delta BC_R = \frac{AW_B-AW_D-AW_M}{AW_i}

AW_C=1,000,000(A/P, 8% , 10)

⇒ AW_C= 1,000,000 \times \frac{0.08}{1-1.08^-^1^0}

⇒ AW_2=2,000,000(A/P, 8%, 20)

⇒ AW_2= 2,000,000 \times \frac{0.08}{1-1.08^-^2^0}

⇒AW_C_2 = $203,704.42

Incremental initial investment = 203,704.42 - 149,029.49

= $ 54,674.93

Incremental benefits = 580,000 - 520,000 = 60,000

Incremental O&M = 75,000 - 80,000 = - $ 5000

Incremental Disbenefits = 140,000 - 90,000 =$ 50,000

\Delta BC_R = \frac{60,000-50,000-(-5000)}{54,674.93} \\\\\Delta BC_R=0.2743

All solving using the present worth method also incremental benefit cost ratio comes out to be 0.2743.

The incremental benefit cost ratio is less than 1 therefore we must select site 1.

3 0
3 years ago
Blade pays tax of $5,000 on taxable income of $50,000 while Caden pays tax of $12,000 on taxable income of $100,000. What type o
serg [7]

Answer:

Correct option is (c)

Explanation:

Progressive tax rate depends upon the income of the individual. In other words, progressive tax rate increases as income increases. So, higher income group have to pay more taxes as compared to lower income group.

Proportion of tax collected from high income group is more in case of progressive tax rates. In this case, Blade's tax rate is 10% that is 5,000/50,000 and Caden's tax rate is 12% that is 12,000/100,000.

So, tax rate is higher for Caden as compared to rate applicable on Blade's income.

8 0
3 years ago
Which of the following is NOT a fall protection method? A. Guardrails B. Personal fall arrest systems C. Safety belts D. Safety
iris [78.8K]
The answer to this Question is B
7 0
3 years ago
Read 2 more answers
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