Question: Find the enterprise valuation cash flow expected for the current year given the following information: Capital expenditures (CAPEX) = $150,000 Depreciation and amortization expenses =

Find the enterprise valuation cash flow expected for the current year given the following information:

Capital expenditures (CAPEX) = $150,000

Depreciation and amortization expenses = $40,000

Earnings before interest and taxes (EBIT) = $400,000

Effective income tax rate =30%

LAST YEAR CURRENT YEAR Required cash Surplus cash Accounts receivable Inventories Accounts payable Accrued liabilities Bank loan (short-term) $ 50,000 20,000 200,000 300,000 100,000 40,000 90,000 75,000 40,000 250,000 360,000 120,000 50,000 110,000

Step by Step Solution

★★★★★

3.31 Rating (175 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Enterprise Valuation Cash Flow a 4000001 30 280000 ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

151-B-F-E (352).docx

120 KBs Word File

Students Have Also Explored These Related Finance Questions!

Describe how the enterprise valuation cash flow is determined. That is, identify the components included in determining the enterprise valuation cash flow.

Kiara (single) is a 50 percent shareholder of Guardian Corporation (an S Corporation). Kiara does not do any work for Guardian Corporation. Guardian Corporation reported $312,000 of business income...

During 2014, Nebraska Wheat Company had operating expenses of $83,500 and income tax expenses of $13,000. Depreciation expense of $20,000 for 2014 was included in operating expenses. The ending...

ASAP! PLEASE ANSWER ALL QUESTIONS FOR A THUMBS UP RATING, THANK YOU! 1) The Effective Annual Rate (EAR) for not taking the discount with credit terms 2/10 net 30 would be about 45%. True False 2)...

Find the enterprise valuation cash flow expected for the current year given the following information: Capital expenditures ( CAPEX ) = $ 1 5 0 , 0 0 0 , Depreciation and amortization expenses = $ 4...

Find the enterprise valuation cash flow expected for the current year given the followng information: (CAPEX) = $180,000 Depreciation and amortization expenses = $40,000 (EBIT) = $400,000 Effective...

A venture has the following information: Capital Expenditure (CAPEX) = $200,000 Depreciation and Amortization Expense = $50,000 EBIT = $450,000 Income Tax Rate = 25% In addition, Year Required Cash...

Preparing a statement of Cash Flows (Indirect Method) 103,000 10,000 Rainbow Company's income statement and comparative balance sheets follow. RAINBOW COMPANY RAINBOW COMPANY During 2015, the...

Using the capital budgeting framework below, pick out relevant assumptions from the excel above and provide a discounted cash flow analysis to find out the NPV's of both options. Capital Budgeting...

Using the financial statement data provided, adapted from the financial statements of Marathon Petroleum, along with the following assumptions, estimate the value (per share) of the companys common...

a. Would you consider the presentation to be a multiple- step income statement or a single-step income statement? Comment. b. Does it appear that there is a 100% ownership in all consolidated...

A shipper has three options to send an expensive cargo worth $35,000 across the pacific and the holding cost for the same is $730 per year. Firstly, opting for a slow cargo ship with a freight cost...

Nuray Corp. preferred stock pays a $ . 5 0 annual dividend. What is the value of the stock if your required rate of return is 1 0 % ?

1.9 An insurance company claims department reports that 45% of the claims they dealt with over the last month related to motor policies, and 30% of those involved drivers under 25 years of age. The...

Access the U.S. Census Bureau Web site at http://www.census.gov. Find relevant information for trends in U.S. population growth for a specific business idea. Comment on the manufacturing statistics...

For a specific business idea, find labor wage data for the types of employees who will be involved. Examples of relevant Web sites include the Bureau of Labor Statistics Web site at...

Access the Federal Reserve Board of Governors Web site at http://www.federalreserve.gov/releases/ to find current interest rates (and foreign exchange rates) relevant to your business venture.

to your IR retire. retire. 5-16 You have just graduated from college and begun your new career, and now it is time to buy your first home. Using the information provided at MyLab Finance, determine...

Net present value Using a cost of capital of 10%, calculate the net present valuo for the project shown in the following table and indicate whether it is acceptable. The net present value (NPV) of...

1.Create a table and derive the probability distribution for total dollar losses in this case. Note that this is total dollar losses, not number of losses. Make sure you label your table correctly. $...