What is after-tax cash flow

Assignment Help Financial Management
Reference no: EM131354234

XYZ Co. has revenue for this year of $66,700. The Overhead Costs are $21,250; the Labor Costs are 34,570; and Depreciation is $12,480. The corporate tax rate is 34%. What is the Net Income for XYZ for the year? What is the After-Tax Cash Flow (ATCF)?

Reference no: EM131354234

Questions Cloud

Assume credit terms offered to your firm by suppliers : Assume the credit terms offered to your firm by your suppliers are 3.1/6, Net 30. Calculate the cost of the trade credit if your firm does not take the discount and pays on day 30. The effective annual cost of the trade credit is ______%. (Round to t..
Forgo the discount on its trade credit agreement : Hand-to-Mouth is currently cash-constrained, and must make a decision about whether to delay paying one of its suppliers, or taking out a loan. They owe the supplier $12,000, but the supplier will give them a 2.4% discount if they pay by today (when ..
Lauren have in her account at the end of seven years : Lauren plans to deposit $6000 into a bank account at the beginning of next month and $225/month into the same account at the end of that month and at the end of each subsequent month for the next 7 years. If her bank pays interest at a rate of 4%/yea..
What is the firm market value capital structure : Hankins Corporation has 8.9 million shares of common stock outstanding, 640,000 shares of 7.4 percent preferred stock outstanding, and 189,000 of 8.6 percent semiannual bonds outstanding, par value $1,000 each. What is the firm's market value capital..
What is after-tax cash flow : XYZ Co. has revenue for this year of $66,700. The Overhead Costs are $21,250; the Labor Costs are 34,570; and Depreciation is $12,480. The corporate tax rate is 34%. What is the Net Income for XYZ for the year? What is the After-Tax Cash Flow (ATCF)?
In evaluating capital budgeting proposed project : In evaluating a Capital Budgeting proposed project, you have the expected After Tax Cash Flow, the life of the proposed project and the Weighted Average Cost of Capital (WACC). The most important of these is the ___ because ___
Find the expected dividends : Selena Gomez has asked you to analyze the following stock as a possible investment. It's most recent dividend was $1.95. Selena believes that the dividend will grow at the rate of 3.25% annually for the next 3 years. Find the expected dividends. Find..
Difference between short synthetic and short currency : Why would anyone do a long synthetic or a short synthetic? What is the difference between a long synthetic and a long currency? What is the difference between a short synthetic and a short currency?
Net present value approach to capital budgeting : The decision criterion in the net present value approach to capital budgeting is to accept the project if ______, and otherwise to reject the project.

Reviews

Write a Review

Financial Management Questions & Answers

  Risk-level equivalent to that of overall market

Your portfolio has a beta of 1.23. The portfolio consists of 18 percent U.S. Treasury bills, 28 percent in stock A, and 54 percent in stock B. Stock A has a risk-level equivalent to that of the overall market. What is the beta of stock B?

  Improve ethics in finance and corporate governance

Research and write an essay on what must be done to improve ethics in finance and corporate governance. Your paper should be 4–6 pages in length, and include three outside references.

  Degree of combined leverage for this japanese firm

Firms in Japan often employ both high operating and financial leverage because of the use of modern technology and close borrower-lender relationships. Assume the Mitaka Company has a sales volume of 130,000 units at a price of $30 a unit; variable c..

  Compute the total cost of inventory

Joe's Bar (not its real name) uses 800 kegs of adult beverages per year on a continuous basis (assume 365 days of operations per year). Determine the reorder point d. Compute the Total Cost of Inventory.

  Bond from the previous example assume that this bond

(You have just purchased an outstanding 15-year bond with a par value of $1,000 for $1,145.68. It's annual coupon payment is $75.) For the same bond from the previous example assume that this bond is callable in 7 years a a price of $1,075. What is t..

  Two separate division-discount rate equal to the firm wacc

Swizer Industries has two separate divisions. Division X has less risk so its projects are assigned a discount rate equal to the firm's WACC minus .75 percent. Division Y has more risk and its projects are assigned a rate equal to the firm's WACC plu..

  What is the companys target debt-equity ratio

Fama’s Llamas has a weighted average cost of capital of 11 percent. The company’s cost of equity is 13 percent, and its pretax cost of debt is 9 percent. The tax rate is 40 percent. What is the company’s target debt−equity ratio?

  What is the annual worth of each alternative

DelRay Foods must purchase a new gumdrop machine. Two machines are available. Machine 7745 has a first cost of $8,200, an estimated life of 10 years, a salvage value of $1,000, and annual operating costs estimated at $0.01 per 1,000 gumdrops. What is..

  Coupon bond with ten years to maturity

What is the Macaulay duration of a 5.6 percent coupon bond with ten years to maturity and a current price of $1,057.70? What is the modified duration?

  Electronics paid an annual dividend

Last week, Lester's Electronics paid an annual dividend of $2.75 on its common stock. The company has a longstanding policy of increasing its dividends by 3% annually. This policy is expected to continue. What is the firm's cost of equity if the stoc..

  What is the percentage return earned on the investment

An investor sells a stock short for $50 a share. A year later, the investor covers the position at $44 a share. If the margin requirement is 60 percent, what is the percentage return earned on the investment?

  Should the replacement piece of equipment be acquired

Crackle and Pop Telephone Company is considering an upgrade to their current call-waiting equipment. Their existing hardware was purchased 3 years ago for $150,000, has been depreciated straight line over a 5-year useful life.  should the replacement..

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