Answer:
Net Income = $282,870
EPS = $0.57
Explanation:
See the image to get the step by step solution
Answer:
Hot dog stand
Explanation:
a in person sell in public
Answer:
The firm's operating cash flow is $291000
Explanation:
Operating cash flow is arrived by using the format below:
Net income after tax
Add back dereciation and amortization
Add and (deduct) Reduction in working capital(Increase in working capital)
Add back interest expense on loans
Add back tax expense for the year
Then deduct:
Actual interest paid
Actual tax paid
Using the proforma above,Kerber's Tennis Shop Inc. is shown as:
Net income after tax+Interest expense(add)+reduction in net working capital(add)-increase in creditors' payment(minus)
As a result,operating cash flow=$220000+$91000-$20000
=$291000
Answer:
9.42%
Explanation:
According to the CAPM,
market required rate of return = risk free rate + (beta x market risk premium)
for stock A :
3.7% + (0.65 X 8.8%) = 9.42%
The market required rate of return isn't equal to the expected return based on the calculation.
for stock B :
3.7% + (1.22 X 8.8%) = 14.44%
for stock B, they both match
Answer:
The answer is: O'Brien's MVA is $12,000,000
Explanation:
We first take the total book value of equity $20,000,000
Then e calculate the market value of the company (stock price per share times shares outstanding) = $32 per share x 1,000,000 shares = $32,000,000
The market value added (MVA) is the difference between market value and equity value:
MVA = $32,000,000 - $20,000,000 = $12,000,000
