Cal Cak Cale Given Given Given Cale Given Given Cale Calc Cale Cale Cak Given Cale...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Cal Cak Cale Given Given Given Cale Given Given Cale Calc Cale Cale Cak Given Cale Cal Cak Cale Use the free cash flow framework below for this question. Income Statement Part Free Cash Flow Framework Part 1 Earnings before interest and taxes x(1-tax rate) Net Operating Profit After Taxes (NOPAT) Balance Sheet Part Free Cash Flow Framework Part 2 Cash Accounts receivable Inventories Operating current assets Accounts payable Accruals Operating current liabilities Operating current assets Operating current liabilities Net Operating Working Capital (NOWC) Net Operating Working Capital (NOWC) Net plant and equipment Total net operating capital (INOC) Income Statement Part minus Balance Sheet Part Part 1 minus Part 2 Net Operating Profit After Taxes (NOPAT) Investment in total net operating capital TNOC n- (TNOC n-1) Free Cash Flow (FCF) What's left for investors 650 60% 390 550 2,750 1,650 4,950 1,100 550 1,650 4,950 1,650 3,300 3,300 4,000 7,300 390 100 290 n-1 500 2,500 1,500 4,500 1,000 500 1,500 4,500 1,500 3,000 3,000 4,200 7,200 Income Statement Part Balance Sheet Part Change 10,00% 10.00% 10.00% 10,00% 10,00% 10,00% 10.00% 10,00% 10.00% 10.00% 10,00% -4.76% 1.39% What does a free cash flow framework in general tell us and what does this specific company free cash flow tell us about the company? (This question is worth 5 points.) Cal Cak Cale Given Given Given Cale Given Given Cale Calc Cale Cale Cak Given Cale Cal Cak Cale Use the free cash flow framework below for this question. Income Statement Part Free Cash Flow Framework Part 1 Earnings before interest and taxes x(1-tax rate) Net Operating Profit After Taxes (NOPAT) Balance Sheet Part Free Cash Flow Framework Part 2 Cash Accounts receivable Inventories Operating current assets Accounts payable Accruals Operating current liabilities Operating current assets Operating current liabilities Net Operating Working Capital (NOWC) Net Operating Working Capital (NOWC) Net plant and equipment Total net operating capital (INOC) Income Statement Part minus Balance Sheet Part Part 1 minus Part 2 Net Operating Profit After Taxes (NOPAT) Investment in total net operating capital TNOC n- (TNOC n-1) Free Cash Flow (FCF) What's left for investors 650 60% 390 550 2,750 1,650 4,950 1,100 550 1,650 4,950 1,650 3,300 3,300 4,000 7,300 390 100 290 n-1 500 2,500 1,500 4,500 1,000 500 1,500 4,500 1,500 3,000 3,000 4,200 7,200 Income Statement Part Balance Sheet Part Change 10,00% 10.00% 10.00% 10,00% 10,00% 10,00% 10.00% 10,00% 10.00% 10.00% 10,00% -4.76% 1.39% What does a free cash flow framework in general tell us and what does this specific company free cash flow tell us about the company? (This question is worth 5 points.)
Expert Answer:
Answer rating: 100% (QA)
A free cash flow framework is a financial analysis tool that helps investors understand how much cas... View the full answer
Related Book For
Fundamentals Of Corporate Finance
ISBN: 9780135811603
5th Edition
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
Posted Date:
Students also viewed these accounting questions
-
Jenny Cochran, a graduate of the University of Tennessee with 4 years of experience as an equities analyst, was recently brought in as assistant to the chairman of the board of Computron Industries,...
-
. Assume that you were recently hired as Wilson's assistant and that your first major task is to help her develop the formal financial forecast. She asks you to begin by answering the following...
-
The financial statements of Lioi Steel Fabricators are shown below-both the actual results for 2012 and the projections for 2013. Free cash flow is expected to grow at a 6% rate after 2013. The...
-
In the context of supply and demand under international trade, when will a country decide to export a particular good? Import a good? Who gains and loses under each decision?
-
An object moving in a straight line doubles its velocity each second for the first 10 s. Let the initial speed be 2 m/s. (a) Sketch a smooth function v(t) that gives the velocity. (b) What is the...
-
Gavin Jones figured out a clever way to get 24 samples of monthly returns in just over one year instead of only 12 samples; he takes overlapping samples; that is, the first sample covers Jan. 1 to...
-
If grandfathering is accepted as the basis for allocating initial emission permits what is the likely impact on early action (action before trading schemes commence) being taken to reduce emissions?...
-
Godfreid Company has accounts receivable of $95,400 at March 31, 2017. Credit terms are 2/10, n/30. At March 31, 2017, there is a $2,100 credit balance in Allowance for Doubtful Accounts prior to...
-
How is the fixed overhead budget variance calculated? The difference between the standard fixed overhead rate and the actual fixed overhead rate multiplied by the actual hours used The difference...
-
WTI is planning to launch a new component. Production volume will be limited, with only 128 components to be produced in total. WTI expects the manufacture of the first component to take 25 direct...
-
Consider the following equation. 2x + y = 17 Step 1 of 2: Determine the missing coordinate in the ordered pair (-1, ?) so that it will satisfy the given equation.
-
QUESTION 1 Description: In your homework you had to create a linked list and a hash table using your linked list class. In that solution you used a linked list class within a hash table class. For...
-
NIKE ADS https://musebycl.io/sports/nike-unleashes-pulsating-womens-soccer-ad-2022-euros https://www.forbes.com/sites/timnewcomb/2022/03/17/women-athletes-participate-...
-
Complete the program so that each cell of array sum contains the sum of the corresponding cells of valA and valB: class Exercise3 { public static void main(String[] args) { int[] valA = {13, -22, 82,...
-
Estimate the 5 - day 9 9 % VaR for the portfolio assuming that its annual volatility calculated on the basis of weekly returns from the most recent 1 - year time window is 3 1 . 7 5 % .
-
Find and simplify. f(x)=3x (a) f(x + h) f(x) (b) f(x + h) - f(x) h
-
OSHA publishes the results of inspections, including the type of violation and proposed penalties. Click on Citations and Notification of Penalty . A list of inspections will appear. Select a company...
-
Why is disclosure of depreciation or amortization methods and rates so important?
-
You are looking to buy a car and can afford to pay $200 per month. If the interest rate on a car loan is 0.75% per month for a 60-month loan, what is the most expensive car you can afford to buy?
-
Download the spreadsheet from the books Web site containing the data for Figure 11.1. a. Compute the average return for each of the assets from 1929 to 1940 (the Great Depression). b. Compute the...
-
The risk-free rate is 3% and you believe that the S&P 500s excess return will be 10% over the next year. If you invest in a stock with a beta of 1.2 (and a standard deviation of 30%), what is your...
-
If the least-squares regression line has slope b1 = 5, and two x-values differ by 3, the predicted difference in the y-values is _____________________. In Exercises 57, fill in each blank with the...
-
For each of the following plots, interpret the y-intercept of the least-squares regression line if possible. If not possible, explain why not. a. The least-squares regression line is = 1.98 +...
-
Substituting the value of the explanatory variable for x in the equation of the least-squares regression line results in a prediction for y. In Exercises 812, determine whether the statement is true...
Study smarter with the SolutionInn App