DST operates in the pharmaceutical sector. This year, it made a net profit of $200 million...

Transcribed Image Text:

DST operates in the pharmaceutical sector. This year, it made a net profit of $200 million and paid dividends of $48 million. This year, its cash balance increased by $25 million over last year. Please choose the correct answer to the following questions from the available values in the lists below. Click on the reply label and drag the box indicated. 1. What is the amount of cash flow available to shareholders (FCFE) of the company DST? (3 points) + 2. If the change in its non-cash working capital (FDR) is $15 million from last year and the company finances 25% of its FDR and net capital expenditures with debt, what would be the value of DST's net capital expenditures during the year? (3 points) 3. On ex-dividend day, DST stock price fell $2. If the typical DST shareholder pays 38% tax on dividends and 20% on capital gains, estimate the number of outstanding shares of the DST company. (1 mark) DST operates in the pharmaceutical sector. This year, it made a net profit of $200 million and paid dividends of $48 million. This year, its cash balance increased by $25 million over last year. Please choose the correct answer to the following questions from the available values in the lists below. Click on the reply label and drag the box indicated. 1. What is the amount of cash flow available to shareholders (FCFE) of the company DST? (3 points) + 2. If the change in its non-cash working capital (FDR) is $15 million from last year and the company finances 25% of its FDR and net capital expenditures with debt, what would be the value of DST's net capital expenditures during the year? (3 points) 3. On ex-dividend day, DST stock price fell $2. If the typical DST shareholder pays 38% tax on dividends and 20% on capital gains, estimate the number of outstanding shares of the DST company. (1 mark)

Answer rating: 100% (QA)

To calculate the amount of cash flow available to shareholders FCFE we need to consider the net prof... View the full answer