Answer:
$45,340
Explanation:
Calculation to determine the annual operating cash flow
Sale $260,300
Less: Operating Cost $143,200
Contribution $117,100
($260,300-$143,200)
Less: Fixed Cost $60,700
Less: Depreciation as per table given below $24,800
Profit before tax $31,600
($117,100-$60,700-$24,800)
Tax $11,060
($34%$31,600)
Profit After Tax $20,540
($31,600-$11,060)
Add Depreciation $24,800
Cash Profit After tax $45,340
($20,540+$24,800)
Therefore the annual operating cash flow is $45,340
Answer:
104.6 million
Explanation:
Data provided in the question:
Free cash flows for 2018 = $58.1 million
Investment in operating capital = $41.1 million
Depreciation expense = $15.5
Taxes on EBIT in 2018 = $20.9 million
Now,
EBIT
= Free Cash Flow + Investment in operating capital + Taxes - Depreciation
on substituting the respective values, we get
EBIT = $58.1 million + $41.1 million + $20.9 million - $15.5
or
EBIT = 104.6 million
What table are you talking about?
Answer:
$163 million
Explanation:
The computation of service cost is shown below:-
Service cost = Projected benefit obligation - December 31 - Projected benefit obligation January 1 - Interest cost (340 × 10%) + benefit payment to retiree Dec 31
= $480 million - $340 million - $34 million + $57 million
= $537 million - $374 million
= $163 million
Therefore for computing the service for we simply applied the above formula.
Answer:
(a) $34.61; 11.54
(b) $32.81; 10.94
Explanation:
(a) Stock Price = D ÷ (Ke – G)
Where,
D is dividend next year,
Ke is required rate of return on equity
G is growth rate
Growth rate = ROE × plow-back ratio
= 0.12 × 0.40
= 0.048 or 4.8%
Dividend = Current EPS × (1 - plow back ratio)
= $3 × 0.6
= $1.8
Stock Price:
= $1.8 ÷ (0.10 - 0.048)
= $34.61
P/E Ratio = Stock Price ÷ EPS
= $34.61 ÷ $3
= 11.54
(b) New growth rate = 0.12 × 0.30
= 0.036 or 3.6%
Dividend = Current EPS × (1 - plow back ratio)
= $3 × 0.7
= $2.1
Stock Price = $2.1 ÷ (0.10 - 0.036)
= $32.81
P/E Ratio = Stock Price ÷ EPS
= $32.81 ÷ $3
= 10.94