The ABC's FCFF is? The ABC's FCFE is? The ABC's sustainable growth rate is? Following ABC's financial
Fantastic news! We've Found the answer you've been seeking!
Question:
The ABC's FCFF is?
The ABC's FCFE is?
The ABC's sustainable growth rate is?
Transcribed Image Text:
Following ABC's financial statements are for questions below Balance Sheet Assets Cash Acc. Receivables Inventory Total CA Fixed Assets Accu. Depre. Net Fixed Assets Total Assets Income Statement: Total Revenues COGS EBITDA Depreciation EBIT Interest Expenses EBT Tax (32%) Net Income 2018 $315 711 2019 Lia. And Equity $372 Acc. Payable 770 Notes Payable Accr. Taxes 846 780 1,806 1,988 Total CL 3,752 4,275 (906) (1,176) Change in Retained Earnings Dividends Long-term Debt Comm. Stock & paid- in Cap 2,846 3,099 Retained Earnings Total Equity $4,652 $5,087 Total Lia. And Equity 2018 $443 450 114 1,007 1,515 525 1,605 2,130 $4,652 2019 $476 465 149 1,090 1,575 525 1,897 2,422 $5,087 2019 $3,323 2,145 1,178 270 908 195 713 228 485 292 193 Following ABC's financial statements are for questions below Balance Sheet Assets Cash Acc. Receivables Inventory Total CA Fixed Assets Accu. Depre. Net Fixed Assets Total Assets Income Statement: Total Revenues COGS EBITDA Depreciation EBIT Interest Expenses EBT Tax (32%) Net Income 2018 $315 711 2019 Lia. And Equity $372 Acc. Payable 770 Notes Payable Accr. Taxes 846 780 1,806 1,988 Total CL 3,752 4,275 (906) (1,176) Change in Retained Earnings Dividends Long-term Debt Comm. Stock & paid- in Cap 2,846 3,099 Retained Earnings Total Equity $4,652 $5,087 Total Lia. And Equity 2018 $443 450 114 1,007 1,515 525 1,605 2,130 $4,652 2019 $476 465 149 1,090 1,575 525 1,897 2,422 $5,087 2019 $3,323 2,145 1,178 270 908 195 713 228 485 292 193
Expert Answer:
Answer rating: 100% (QA)
ANSWER A To calculate the FCFF we need to start with EBIT and make adjustments for taxes interest ex... View the full answer
Related Book For
Equity Asset Valuation
ISBN: 978-0470571439
2nd Edition
Authors: Jerald E. Pinto, Elaine Henry, Thomas R. Robinson, John D. Stowe, Abby Cohen
Posted Date:
Students also viewed these finance questions
-
A treasury bond has maturity T = 10Y and pays at the end of each year a coupon of $5.00 on a face value of $100. The risk-free interest rate for all maturities is 4.0% with continuous compounding....
-
Use the attached "words.txt" file to store the words along with their ranks in an AVL tree. Then provide the user the option to search for any word. If the word exists the program displays the rank...
-
The first case at the end of this chapter and numerous subsequent chapters is a series of integrative cases involving Wal-Mart Stores, Inc. (Walmart). The series of cases applies the concepts and...
-
When dealing with a recession, governments may... a) increase spending b) raise taxes c) increase regulations d) decrease spending
-
The radius of curvature of the convex surface of a planoconvex lens is 95.2 cm. The lens is placed convex side down on a perfectly flat glass plate lhat is illuminated from above with red light...
-
Bill Allen owns Bills Lawncare Service. The business has cash of \($3,000\) and equipment that costs \($12,000\). Debts of the business include accounts payable of \($6,000\) and a \($5,000\) note...
-
Explain the acronyms AIM, SETS, MTF and HFT.
-
Intermountain Technologies, a computer consulting firm, has decided to write off the $11,575 balance of an account owed by a customer. Illustrate the effects on the accounts and financial statements...
-
Find the convexity of a seven - year maturity, 6 . 6 % coupon bond selling at a yield to maturity of 8 . 4 % . The bond pays its coupons annually. ( Do not round intermediate calculations. Round your...
-
Many small-business owners have a difficult time finding financing to start or expand their business. The Small Business Administration is one potential source of financing for many types of small...
-
2. Write the balanced half reactions, and cell reaction for the cell schematic below, calculate the standard cell potential, and note whether the reaction is spontaneous under standard state...
-
Discuss standpipe and hose systems for fire protection and firefighting. You might consider the following questions to help you get started List and discuss the different types of standpipes and the...
-
10. A skateboarder travels down a slope. At which point does he have his greatest kinetic energy? 11. A pendulum is a mass on a string that swings back and forth to some angle. When is the kinetic...
-
Subtract the following terms, if possible. 72x-18x
-
A mid-sized tech company is finalizing a complex software solution for a large international client. The client is unfamiliar with the technical aspects but needs a thorough understanding of the...
-
At December 31, 2011 and 2010, Miley Corp. had 180,000 ordinary shares and 10,000 shares of 4%, $100 par value cumulative preference shares outstanding. No dividends were declared on either the...
-
Provide at least three (3) reasons for believing in the accuracy or inaccuracy of sensory information. 2. Identify and describe at least three (3) factors contributing to the accuracy of sensory...
-
Find the area of the surface generated by revolving the para- metric curve x = cos 1, y = sin? 1 (0 < I sa/2) about the y-axis.
-
Do Pham is evaluating Phaneuf Accelerateur by using the FCFF and FCFE valuation approaches. Pham has collected the following information (currency in euro): Phaneuf has net income of 250 million,...
-
The indicated value of Thunders equity using the build-up method and the capitalized cash flow method (CCM) based on free cash flow to equity is closest to A. $29.41 million. B. $38.46 million. C....
-
Explain how the procedure for using a valuation model to infer market expectations about a companys future growth differs from using the same model to obtain an independent estimate of value.
-
On January 1, 2011, BGA Company had a balance of \(\$ 500,000\) in its Bonds Payable account. During 2011, BGA issued bonds with a \(\$ 150,000\) face value. There was no premium or discount...
-
The following accounts and corresponding balances were drawn from Winston Company's 2012 and 2011 year-end balance sheets. Other information drawn from the accounting records: 1. Winston incurred a...
-
Top Brands, Inc. (TBI), presents its statement of cash flows using the indirect method. The following accounts and corresponding balances were drawn from TBI's 2012 and 2011 year-end balance sheets....
Study smarter with the SolutionInn App