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Capital Structure Analysis, Capital Budgeting Analysis and form Funding Growth Strategies for Target (TGT)
The acquisition candidate produces an EBITDA of 10% of your current EBITDA and is offered to your firm at a price of multiple of 8 times EBITDA. Assume the following:
List after-tax cash flow analysis to answer the following:
Capital Structure Analysis and Funding Growth Strategies (80 points): Imagine your firm has some attractive investment opportunities that it is considering. The capital budgeting process has been completed and found that these projects have a positive NPV and are desirable. The firm must raise financing for the projects in the amount equal to 5% of the current level of its total assets. As you know, these funds can come from a number of sources: operations, short-term debt, long-term debt (new bond issues), or equity (new stock issues).
Your task is to decide where funds for these projects should come from based on your knowledge of the firm and your knowledge of the current state of the economy (i.e., level of interest rates, state of the stock market, future prospects for the economy/firm). This section is worth 80 points. Your analysis should answer the following questions:
Income Statement
1/31/2021
Revenue
$93,561,000.00
Cost of Goods Sold
$66,177,000.00
Gross Profit
$27,384,000.00
Research and Development Expenses
-
SG&A Expenses
$18,615,000.00
Other Operating Income or Expenses
Operating Expense
$87,022,000.00
Operating Income
$6,539,000.00
Total Non-Operating Income/Expense
-$993,000.00
Pre-tax Income
$5,546,000.00
Icome Taxes
$1,178,000.00
Income After Taxes
$4,368,000.00
Other income
Income From Continuous Operations
Income From Discontinued Operations
Net Income
EBITDA
$9,024,000.00
EBIT
Basic Shares Outstanding
501
Shares Outstanding
505
Basic EPS
$8.72
EPS-Earnings Per Share
$8.64
Balance Sheet
Cash on Hand
$8,511,000.00
Receivables
Inventory
$10,653,000.00
Other Current Assets
$1,592,000.00
Total Current Assets
$20,756,000.00
Property, Plant, and Equipment
$26,879,000.00
Long-term investments
Goodwill And Intanigable Assets
Other Long-Term Assets
$1,386,000.00
Total Long-Term Assets
$30,492,000.00
Total Assets
$51,248,000.00
Total Current Liabilities
$20,125,000.00
Long Term Debt
$11,536,000.00
Other Non-Current Liabilities
$1,939,000.00
Total Long Term Liabilities
$16,683,000.00
Total Liabilities
$36,808,000.00
Common Stock Net
$42,000.00
Retained Earnings(Accumulated Deficit )
$8,825,000.00
Comprehensive Income
-$756,000.00
Other Share Holders Equity
Share Holder Equity
$14,440,000.00
Total Liabilities and Share Holders Equity
On 1/5/2021, an investor buys 8 gold futures contracts, when the futures price is $1,500 per ounce. The contract size is 100 ounces.
Prepare an Income Statement for the period ending 31 July 2014. Prepare a Classified Balance Sheet in the vertical format, as at 31 July 2014.
Define the transfers assets by operation of law?
What kind of diversification took place when State Farm entered the banking field?
List four Possible external factors that could contribute to profit or loss
Today, it is selling this machinery for $14,436. What is the after-tax salvage value if the tax rate is 27 percent?
What amount of ordinary income and separately stated items are allocated to them for years 1 and 2 based on the information above? Complete UpAHill's Form 1120S, Schedule K, for year 1.
Coca-Cola (KO) is the world's largest producer of soft-drink concentrates, syrups, and juices. Its soft-drink brands include Coke, Diet Coke, Cherry Coke, Sprite, Tab, Nestea, and Barq's.
Depreciation expense will be $2,500, interest expense $1,500, and other expenses will be $3,000. Wessel's tax rate is 35%. What will Knox Corp.'s net income be for 2011?
the following items were taken from the balance sheet of nike inc.1cash2291.102accounts receivable2883.903common
Your great aunt left you $20 000 when she died. You can invest the money to earn 12% per year. If you spend $3540 per year out of this inheritance, how long will the money last
The price of a European call that expires in seven months and has a strike price of $62 is $3.15. The underlying stock price is $59.50, and a dividend.
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