igzaw Company has Sales amounting to P400,000 with expected increase of 25% next year. Net earnings after tax is P80,000, with 20% dividend payout. If the Current Asset is P250,000 and Spontaneous liability is P130,000, what is the AFN for the company?
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Jigzaw Company has Sales amounting to P400,000 with expected increase of 25% next year. Net earnings after tax is P80,000, with 20% dividend payout. If the Current Asset is P250,000 and Spontaneous liability is P130,000, what is the AFN for the company?
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- The Berndt Corporation expects to have sales of 12 million. Costs other than depreciation are expected to be 75% of sales, and depreciation is expected to be 1.5 million. All sales revenues will be collected in cash, and costs other than depreciation must be paid for during the year. Berndts federal-plus-state tax rate is 40%. Berndt has no debt. a. Set up an income statement. What is Berndts expected net income? Its expected net cash flow? b. Suppose Congress changed the tax laws so that Berndts depreciation expenses doubled. No changes in operations occurred. What would happen to reported profit and to net cash flow? c. Now suppose that Congress changed the tax laws such that, instead of doubling Berndts depreciation, it was reduced by 50%. How would profit and net cash flow be affected? d. If this were your company, would you prefer Congress to cause your depreciation expense to be doubled or halved? Why?A company has annual after-tax operating cash flows of P2,000,000 per year which are expected to continue in perpetuity. The company has a cost of equity of 10%, a before tax cost of debt of 5% and an after tax weighted average cost of capital of 8% per year. Corporation tax is 20%. What is the theoretical value of the company? Choices P25m P50m P20m P40mA company has annual after-tax operating cash flows of P2,000,000 per year which are expected to continue in perpetuity. The company has a cost of equity of 10%, a before tax cost of debt of 5% and an after tax weighted average cost of capital of 8% per year. Corporation tax is 20%. What is the theoretical value of the company? A. 40,000,000 B. 20,000,000 C. 25,000,000 D. 50,000,000
- Calculate a firm's free cash flow if it has net operating profit after taxes of P60,000, depreciation expense of P7,000, an interest expense of P1,000, a net fixed asset investment of P30,000, a net current asset requirement of P15,000 and a tax rate of 30%.A company has annual after-tax operating cash flows of P2,000,000 per year which are expected to continue in perpetuity. The company has a cost of equity of 10%, a before tax cost of debt of 5% and an after tax weighted average cost of capital of 8% per year. Corporation tax is 20%. What is the theoretical value of the company?ABC Sdn Bhd has a gross sales of RM 12000000 for year 2021. This company needs to pay 10% for annual fixed capital, 15% for operation capital and 10% for business taxes. Based on the net profit, they plan to invest 50% of the amount into a stock market. Estimate the amount of his money after THREE (3) years for the following cases:(i) Profit forecast is based on fixed interest rate of 10% per annum.(ii) The profit forecast is 10% per annum compounded every SIX (6) month.
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- Calculate a firm's free cash flow if it has net operating profit after taxes of P60,000, depreciation expense of P10,000, net fixed asset investment requirement of P40,000, a net current asset requirement of P30,000 and a tax rate of 30%CB corp. is expected to generate net income of $40 million next year and will pay $20 in after tax interest expense next year. The company is expected to reunvest 20% of its aftet tax operating earnings and will have ROC equal to 10% in perpetuity. If the weighted average cost of capital for CB Corp is 10% , what is todays present value of the firm equal to A. $150 million B. $60 million C. $120 million D. $600 millionThe Leap Corporation expects next year’s net income to be P15 million. The firm’s debt ratio is currently 40%. Leap has P12 million of profitable investment opportunities, and it wishes to maintain its existing debt ratio. According to the residual distribution model (assuming all payments are in the form of dividends), how large should Leap's dividend payout ratio be next year?
