How much net new equity was raised

Assignment Help Financial Management

Reference no: EM131566142

As a soon-to-be business baccalaureate, Your proud parents are wanting you to take over the family business, starting on January 15, 2017. Before accepting this offer, you want to know more about the business. First, you decide to get a better understanding of the cash flows and other financial basics about the business. On December 31, 2016, your parents give you this information about the business for the calendar year 2016:

Financial Summary for 2016 (all numbers in thousands of USD)

Net Sales 850

COGS 400

Depreciation 250

Interest expense 77

Taxes paid 49

Dividends 50

Net capital spending 290

Net increase in Working capital 50

Net new borrowing 300

Total interest-bearing Debt as of 12/31 1,600

Based upon the Financial Summary for 2016 provided above, compute the following numbers:

1. EBIT

2. Taxable income

3. Tax rate (based upon Taxable Income)

4. Net income

5. Addition to retained earnings

6. Operating cash flow

7. Cash flow from assets

8. Cash flow to creditors

9. Cash flow to shareholders

10. How much net new equity was raised (or retired)?

Reference no: EM131566142

Questions Cloud

Million shares with market value : Slico Co. has in issue, 1.5 million shares with a market value of $4 per share. It is expected to pay a dividends of $1.05, which is expected to grow at a rate

Christmas fund club : Savings Accounts Linda has joined a “Christmas Fund Club” at her bank. At the end of each month,

Creating for her recently awarded research grant : Professor Shelley is creating a budget for her recently awarded research grant. How much should she put in her budget for maintenance costs?

Creating budget for her recently awarded research grant : Professor Shelley is creating a budget for her recently awarded research grant. Please note the wording on this problem is a little unclear.

How much net new equity was raised : As a soon-to-be business baccalaureate, How much net new equity was raised (or retired)?

What is mad dogs operating income and net income : What is Mad Dogs Operating Income (EBIT) and Net Income?

Calculate pappy cost of preferred shares : Calculate Pappy’s cost of preferred shares. Calculate Pappy’s weighted average cost of capital.

New machinery whose salvage value is expected to be zero : ESX Ltd is planning on investing $0.2 million to purchase a new machinery whose salvage value is expected to be zero.

What the npv and irr of this investment : What the NPV and IRR of this investment? Should this investment be undertaken?

User Account

All Pages