What are the after-tax cash flows for the company

Assignment Help Finance Basics
Reference no: EM13265176

Assume a corporation has earnings before depreciation and taxes of $100,000, depreciation of $25,000, and that it has a 25 percent tax bracket. What are the after-tax cash flows for the company?

Reference no: EM13265176

Questions Cloud

Find the annualized two period forward rate beginning : Suppose you are given the following risk-free spot rates for zero bonds maturing in 1,2, 3, 4 years, respectively : R1 = 0:05, R2 = 0:055, R3 = 0:0574, R4 = 0:06. Find the annualized two period forward rate beginning at period 2.
Explain classical theory for blackbody radiation occur : Why did the discrepancy between experiments and classical theory for blackbody radiation occur at high and not low frequencies
What is the profit on new sales : The collection cost on these accounts is 4% of new sales, the cost of producing and selling is 79% of sales and the firm is in the 26% tax bracket. What is the profit on new sales?
Determine the change in length of the rod : An aluminum rod is 24.0 cm long at 20°C and has a mass of 350 g. If 14,000 J of energy is added to the rod by heat, what is the change in length of the rod
What are the after-tax cash flows for the company : Assume a corporation has earnings before depreciation and taxes of $100,000, depreciation of $25,000, and that it has a 25 percent tax bracket. What are the after-tax cash flows for the company?
Compute the energy of a mole of photon : Calculate the energy of a mole of photon with wavelength of (a) 200nm (ultraviolet), (b) 150pm(X ray), and (c)1.00cm (microwave).
By how much will their earnings after tax change : By how much will their earnings after tax change if they choose the more aggressive financing plan instead of the more conservative?
Explain reproduce heat capacities of monatomic metals : How did the Dulong-Petit law fail to reproduce heat capacities of monatomic metals at low temperatures and how did Einstein explain and rectify this failure
Determine what is the minimum fft length n : A digital oscillator delivers two sinusoidal signals at 10 kHz and 12 kHz, sampled at 60 kSa/s. What is the minimum FFT length N that will result in a leakage-free FFT if both tones are present?

Reviews

Write a Review

Finance Basics Questions & Answers

  Determine the average inventory

Corporation ABC has expected sales of 12,000 units this year, an ordering cost of $6 per order and carrying costs of $1.60 each unit. Determine the average inventory?

  Economic functions financial intermediaries perform

Suppose you have been asked to write a report for a group of new stock brokers about the American Stock Exchange and the NASDAQ.

  Managing exchange rate risk

Assume China suddenly decided to change its mind. Overnight, instead of increasing its value China decided to devalue downwards the Yuan by 20% in order to increase the attractiveness of its exports.

  Find the composite cost of capital

A company plans to increase $4 million through borrowing at an interest rate of 16% and to raise $1 million by issuing common stock. The company's stock has a beta coefficient of 2,

  Finding the bond value

What was your average annual capital gains yield over the past three years on this bond ('07-'10)? Note: just find the capital gains yield, not the "total" yield.

  What is the unlevered value of the firm

The company is in the process of issuing $2 million of bonds at par that carry a 5% annual coupon. What is the unlevered value of the firm (in millions)? (Note: You should use MM capital structure model with corporate taxes, but without personal t..

  Lockbox system to reduce collection time

It takes a corporation about six days to receive and deposit checks from customers management is planning a lockbox system to reduce collection time.

  Find the forward rate

If you were to buy 10 Sept 2011 Euribor futures at 99.35 & sell them at 99.40 three days later, how much money would you have made or lost? Every future has a tick value of €25

  Determine the portfolios required return

A portfolio manager has a $10 million portfolio, which consists of $1 million invested in ten separate stocks. The portfolio beta is 1.2. The risk-free rate is 5 percent and the market risk premium is 6 percent.

  Financial basics to be considered for short term borrowing

What financial basics should be considered when determining the most appropriate amount of short term borrowing

  Interest versus dividend income

Compute the firms tax on its operating earnings only. Find out the tax and the after-tax amount attributable to the interest income from Zig Manufacturing bonds.

  Computing the stock price

The growth rate for McDonalds is expected to be 10 percent for one year. After that, the dividend rate is expected to grow at a rate of 6 percent indefinitely.

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!

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