You are an industry analyst for the energy sector. You are analyzing financial reports from two...

 

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You are an industry analyst for the energy sector. You are analyzing financial reports from two companies: Black Gold Corp. and New Energy Inc. Corporate tax for both firms is 35%. Your associate analyst has calculated and compiled in the following table, a list of important figures you need for the analysis: Black Gold Corp. New Energy Inc. EBIT Depreciation $ 278,800 $ 102,000 $ 92,004 $ 33,660 Total operating capital $ 1,224,000 $ 636,480 Net investment in operating capital WACC $ 612,000 $ 265,200 11.85% 11.88% What is the free cash flow and ROIC for New Energy Inc.? You are an industry analyst for the energy sector. You are analyzing financial reports from two companies: Black Gold Corp. and New Energy Inc. Corporate tax for both firms is 35%. Your associate analyst has calculated and compiled in the following table, a list of important figures you need for the analysis: Black Gold Corp. New Energy Inc. EBIT Depreciation $ 278,800 $ 102,000 $ 92,004 $ 33,660 Total operating capital $ 1,224,000 $ 636,480 Net investment in operating capital WACC $ 612,000 $ 265,200 11.85% 11.88% What is the free cash flow and ROIC for New Energy Inc.?

Answer rating: 100% (QA)

To calculate the free cash flow and return on invested capital ROIC for New Energy Inc we need the f... View the full answer