Calculate the amount of financing needed for Molycorp in 2012.

Hint: financing amount is use of cash (capital expenditures, repayment of debt, investment in net working capital, interest expenses) minus source of cash (cash holdings minus minimum required cash).

 

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Exhibit 3 Molycorp Income Statement, 2009-2012 (millions of dollars) Revenue Costs of Goods Sold Gross Profit SG&A Research & Development (R&D) Depreciation Earnings Before Interest and Tax (EBIT) Net Interest Restructuring and Other Charges Profit Before Tax (PBT) Tax Expense (Credit) Minority Interest Net Income Common Dividends $ Year Ending 12/31 2009 7.1 $ 21.8 (14.7) 12.7 1.2 (28.6) 0.2 (0.2) (28.6) (28.6) 0.0 2010 35.2 $ 28.8 6.4 45.2 2.3 6.9 (48.1) 2011 396.8 154.2 242.7 0.0 56.7 7.7 15.2 163.1 (0.2) 0.4 3.0 15.8 (50.8) 146.9 28.6 0.8 (50.8) 117.5 0.0 6 Months Ending 6/30 2011 2012 $ 125.9 55.1 70.8 Sources: S&P Capital IQ (accessed 11/8/13), and Molycorp Annual Reports, various years. 22.5 3.0 5.4 39.9 (0.2) 40.1 (6.4) 1.0 45.6 0.0 $ 189.0 145.3 43.8 65.6 9.7 11.1 (42.6) 9.7 47.6 (99.9) (29.5) (0.7) (69.7) 0.0 Exhibit 3 Molycorp Income Statement, 2009-2012 (millions of dollars) Revenue Costs of Goods Sold Gross Profit SG&A Research & Development (R&D) Depreciation Earnings Before Interest and Tax (EBIT) Net Interest Restructuring and Other Charges Profit Before Tax (PBT) Tax Expense (Credit) Minority Interest Net Income Common Dividends $ Year Ending 12/31 2009 7.1 $ 21.8 (14.7) 12.7 1.2 (28.6) 0.2 (0.2) (28.6) (28.6) 0.0 2010 35.2 $ 28.8 6.4 45.2 2.3 6.9 (48.1) 2011 396.8 154.2 242.7 0.0 56.7 7.7 15.2 163.1 (0.2) 0.4 3.0 15.8 (50.8) 146.9 28.6 0.8 (50.8) 117.5 0.0 6 Months Ending 6/30 2011 2012 $ 125.9 55.1 70.8 Sources: S&P Capital IQ (accessed 11/8/13), and Molycorp Annual Reports, various years. 22.5 3.0 5.4 39.9 (0.2) 40.1 (6.4) 1.0 45.6 0.0 $ 189.0 145.3 43.8 65.6 9.7 11.1 (42.6) 9.7 47.6 (99.9) (29.5) (0.7) (69.7) 0.0

Answer rating: 100% (QA)

To calculate the amount of financing needed for Molycorp in 2012 we need to consider the use of cash and the source of cash based on information provi... View the full answer