User Account

All Pages

Depreciation and capital expenditures

Assignment Help Finance Basics
Reference no: EM131402136

Victoria Enterprises expects earnings before interest and taxes (EBIT ) next year of $1.2 million. Its depreciation and capital expenditures will both be $313,000 , and it expects its capital expenditures to always equal its depreciation. Its working capital will increase by $53,000over the next year. Its tax rate is 35%. If its WACC is 8% and its FCFs are expected to increase at 6% per year inperpetuity, what is its enterprisevalue?

Reference no: EM131402136

Questions Cloud

Identify those risk factors associated with the young family : A nurse conducts an assessment on a young family with a new baby boy. The husband has recently been promoted to a higher paying position but is not sure if he will be making enough money to move a new apartment in a safer neighborhood. Based on th..
What would be the likely impact of this law : Suppose an air-quality law is passed that requires 3.75 percent of all the cars sold to emit zero pollution.
Estimate of csh stock price : CSH has EBITDA of $5 million. You feel that an appropriate EV/EBITDA ratio for CSH is 8. CSH has $9 million in debt, $3 million in cash, and 775,000 shares outstanding. What is your estimate of CSH's stock price?
Identify the fallacies of relevance : Identify the fallacies of relevance committed by the following arguments, giving a brief explanation for your answer. If no fallacy is committed, write "no fallacy."
Depreciation and capital expenditures : Victoria Enterprises expects earnings before interest and taxes (EBIT ) next year of $1.2 million. Its depreciation and capital expenditures will both be $313,000 , and it expects its capital expenditures to always equal its depreciation. Its work..
What is its free cashflow : This year, FCF Inc. has earnings before interest and taxes of $9.1 million, depreciation expenses of $0.6 million, capital expenditures of $1.5million, and has increased its net working capital by $575,000. If its tax rate is 30% , what is its fre..
How does a coder find out if the third party payer requires : The textbook says that the common anesthesia time units are 15 minutes, but that some carriers use 30 minutes. Not mentioned in the book is the fact that some carriers require the actual number of minutes rather than increments. Why do you think t..
Estimate pretty good golfers score based on assumption : Use a simulation to estimate a pretty good golfer's score based on these assumptions:- The tee shot hits the fairway 70% of the time.
Corporation sells on credit terms : Size of Accounts Receivable [LO1] The Arizona Bay Corporation sells on credit terms of net 30. Its accounts are, on average, four days past due. If annual credit sales are $9.75 million, what is the company's balance sheet amount in accounts recei..

Reviews

Write a Review

Finance Basics Questions & Answers

  Stock b has an expected return of 181 what is the expected

you own a portfolio of two stocks a and b. stock a is valued at 8000 and has an expected return of 13.2. stock b has

  What is experimental contamination

Does a nonequivalent groups pretest-posttest design eliminate local history as a potential explanation of the results? Explain.

  Computation of break even points

Computation of break even points - Evaluate the number of copies East must sell in order to earn an (operating) profit of $21,000 on this book.

  Estimate of future cash flows from perspective of us parent

What factors did PepsiCo likely consider in deriving its required rate of return on the project in Brazil? Describe the uncertainty that surrounds the estimate of future cash flows from the perspective of the U.S. parent.

  Should the hospital agree to the discount proposal

A profit of $500,000? d.Assume tha 20 percent of hospital's inpatient days come from a managed care plan that wants a 25 percent discount from charges.should the hospital agree to the discount proposal?

  Assignment on the market structure

You have been hired as a consultant by your local mayor to look at the various market structures. Your role is to provide analysis and answers to these important questions that will help the mayor understand the structures of many of the businesse..

  Deniecehas accumulated in her thrift savings plan at her job

Show calculations- Time value of money Deniecehas accumulated $50,000 in her thrift savings plan at her job at the FederalAviation Administration.The governmentputs in 1% of her pay and matches up to another 4% if she puts in 5% out of herpay.

  What is the proper cash flow amount

What is the proper cash flow amount to use as the initial investment in fixed assets when evaluating this project? (Enter your answer in dollars, not millions of dollars, i.e. 1,234,567.)

  What policies that new packaging product such as thetedsbox

Describe what policies that a new packaging product such as theTEDSBOX may need to be aware of if the manufacturer wants to sell his product.

  What would happen to average receivables if mcdowell

mcdowell industries sells on terms of 310 net 30. total sales for the year are 912500. forty percent of the customers

  Results of a picture he has painted

Sherwin Williams will receive $18,500 a year for the next 25 years as a results of a picture he has painted. If a discount rate of 12 percent is applied, should he be willing to sell out his future rights now for $165,000?

  A firm is considering purchasing two assets asset a will

a firm is considering purchasing two assets. asset a will have a useful life of 10 years and cost 3 million it will

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd