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Sveta_85 [38]
3 years ago
12

Madura Inc. wants to increase its free cash flow by $180 million during the coming year, which should result in a higher EVA and

stock price. The CFO has made these projections for the upcoming year: · EBIT is projected to equal $960 million. · Gross capital expenditures are expected to total to $360 million versus depreciation of $120 million, so its net capital expenditures should total $240 million. · The tax rate is 40%. · There will be no changes in cash or marketable securities, nor will there be any changes in notes payable or accruals. What increase in net operating working capital (in millions of dollars) would enable the firm to meet its target increase in FCF?
Business
1 answer:
RoseWind [281]3 years ago
6 0

Answer:

$156 million

Explanation:

The computation of the change in net working capital  is shown below:

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

$180 million = $960 million × (1 - 40%) + $120 million - change in working capital - $360 million

$180 million = $576 million + $120 million - change in working capital - $360 million

$180 million = $336 million - change in working capital

So, the change in working capital would be

= $336 million - $180 million

= $156 million

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Sergio [31]
Ending merchandise = beginning Merchandise + net purchases- cost of goods sold
Cost of goods sold= beginning merchandise + purchases during the period- ending merchandise
3 0
3 years ago
Marta, the public relations manager of a local library, is meeting with the news media regarding a new reading program for child
Zolol [24]

Marta is performing the <u>spokesperson</u> role.

<u>Explanation:</u>

By communicating projects, successes and / or perspectives, Public Relation managers build and maintain an advantageous public image for their company or customer, and thus serve as a spokesperson. The role of public relations managers is to answer questions from the press and pitch stories to the media, plan publicity kits and coordinate press conferences. A good PR manager is ultra-engaged and maintains the eye on what's going on in the industries of the clients. They also remain up-to-date about current world events and developments that may affect the industries within which they work.

3 0
3 years ago
There are 5 applicants for a job, all of whom have different qualifications. the employer is in a hurry, and does not interview
Alenkinab [10]
To choose the two best, we have a target of two candidates, A & B
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Alternatively, use the combination formula, 
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5 0
3 years ago
One year ago, JK Mfg. deposited $12,000 in an investment account for the purpose of buying new equipment four years from today.
Lyrx [107]

Answer:

Total FV= $46,008.31

Explanation:

Giving the following information:

Deposit 1= $12,000

Deposit 2= $15,000

Deposit 3= $10,000

Interest rate= 0.055

<u>To calculate the future value, we need to use the following formula on each deposit:</u>

FV= PV*(1+i)^n

FV1= 12,000*(1.055^5)= 15,683.53

FV2= 15,000*(1.055^4)= 18,582.37

FV3= 10,000*(1.055^3)= 11,742.41

Total FV= $46,008.31

4 0
3 years ago
An economy is experiencing a high rate of inflation. The government wants to reduce consumption by $36 billion to reduce inflati
Alisiya [41]

Answer:

option c) $ 12 billion

Explanation:

Data provided :

Required reduction in consumption = $ 36 billion

MPC = 0.75

Now,

Total income  = Required reduction in consumption / MPC

or

the Increase in tax = $ 36 billion / 0.75

or

= $ 48 billion

the government can raise the tax = $ 48 billion - $ 36 billion = $ 12 billion

Hence, the answer is option C

5 0
3 years ago
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