different cash flow strategies in mind as you read this chapter. 47 48 Part 1: Fundamental Concepts of Corporate Finance Intrinsic Value‚ Free Cash Flow‚ and Financial Statements erage cost of capital (WACC). This chapter focuses on FCF‚ including its calculation from financial statements and its interpretation when evaluating a company and manager. In Chapter
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1. Calculate TRUST’s company after-tax WACC. The risk-free rate was 4.21%‚ the market risk premium was 6% and the company tax rate was 30%. The WACC should be rounded to four decimal places. After-tax WACC = rD (1-Tc) D/V + rE E/V rE = rf + βequity(rm – rf) rE = 0.0421 + 0.81(0.06) rE = 0.0907 E = number of outstanding shares x current share price E = 60 million x $3.43 E = $205.8 million D = $44 million bank loans + $1.2 million short-term hire purchase commitments D = $45.2 million
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Debt-Equity Ratio | | | FCF (millions) | 1335 (Turkish lira) | -1155 (euros) | | | | Ratio Year of 2011 | Turkish | ICAG | Current Ratio (CA/CL) | 3794054/3951410 = 0.9602 | 7624953/8447873 = 0.9026 | Return on Equity | 3.24 | | Net Margin | | | Solvency Ratio (After Tax Net Profit + Depreciation)/(LT+ST Liabilities) | 27.42 | | Price Earnings Ratio | 3.40 | | Return on Invested Capital | | | EBITDA Margin | | | Debt-Equity Ratio | | | FCF (millions) | | |
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to overall private label market of $70 billion HPL is a major player in private label personal care industry. Question 2: Using assumptions made by Executive VP of Manufacturing‚ Robert Gates (Exhibit 5 and table on page 3)‚ estimate the project’s FCFs. Are Gates’ projections realistic? If not‚ what changes would you consider making? FREE CASH FLOW CALCULATION | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | | | | | | | | | | | | | | |
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ABC‚ 123: The Impact of a Mobile Phone Literacy Program on Educational Outcomes Jenny C. Aker‚ Christopher Ksoll and Travis J. Lybbert Abstract We report the results from a randomized evaluation of a mobile phone education program (Project ABC) in Niger‚ in which adult students learned how to use mobile phones as part of a literacy and numeracy class. Overall‚ students demonstrated substantial improvements in literacy and numeracy test scores‚ suggesting that the adult literacy curriculum is effective
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- 13 - 14 - 15) 17 Other income 18 Earnings before interest & taxes (EBIT) Interest expense 19 Pretax income 20 Current taxes Deferred taxes Net income Addition to retained earnings Dividends 21 Operating Cash Flow (OCF) 22 Total Project Cash Flow (FCF) Year: 2% 8×9+10 0 10% 8×12 16 + 17 1 5‚000 $20.00 0.00 100.00 $10.00
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INDIAN INSTITUTE OF TECHNOLOGY BHUBANESWAR Digital Signal Processing Lab Report 6 Submitted by Name Allam Levi Ratnakar B Suresh Roll Number 08EEB025 08EEB026 Problem: Design a model for the plant h (z) =0.2600+0.9300z¯¹+0.2600z¯² using direct modeling (Adaptive Algorithm LMS/RMS). The channel is associated with the following functions. where p(k) is the output of each of linear part of the channels Theory: The aim of this experiment is to create a model for a plant with given parameters
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Mercury Athletic Footwear Valuing the Opportunity [Author] CASE ANALYSIS Mercury Athletic Footwear Table of Contents 1. Is Mercury an appropriate target for AGI? Why or why not? ............................ 3 2. Review the projections by Liedtke. Are they appropriate? How would you recommend modifying them? ....................
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Corporate Finance: The Core (Berk/DeMarzo) Chapter 7 - Fundamentals of Capital Budgeting 1) Which of the following statements is false? A) Because value is lost when a resource is used by another project‚ we should include the opportunity cost as an incremental cost of the project. B) Sunk costs are incremental with respect to the current decision regarding the project and should be included in its analysis. C) Overhead expenses are associated with activities that are not directly attributable to a single business
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W22Extra: Tax and Gearing: More Questions Multiple Choice 1) Which of the following statements is false? A) In general‚ the gain to investors from the tax deductibility of interest payments is referred to as the interest tax shield. B) The interest tax shield is the additional amount that a firm would have paid in taxes if it did not have leverage. C) Because Corporations pay taxes on their profits after interest payments are deducted‚ interest expenses reduce the amount of corporate tax
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