What is supply net income

Assignment Help Financial Management
Reference no: EM13938289

Dharma Supply has earnings before interest and taxes (EBIT) of $563,000, interest expenses of $259,000, and faces a corporate tax rate of 34 percent.

A. What is Dharma Supply's net income?

B. If it didn't have any debt, Dharma's net income is?

C. The firm’s interest tax savings are?

Reference no: EM13938289

Questions Cloud

Equipment is depreciated straight-line to zero book value : Thornley Machines is considering a 3-year project with an initial cost of $1,050,000. The project will not directly produce any sales but will reduce operating costs by $600,000 a year. The equipment is depreciated straight-line to a zero book value ..
Preffered stock is a hybrid security : Preffered Stock is a hybrid security, because it has some characteristics typical of debt and others typical of equity. The following table lists various characteristics of preferred stock. Determine which of these characteristics is consistent with ..
The firms after-tax cost of new debt : A company is going to issue a $1,000 par value bond that pays a 7% annual coupon. The company expects investors to pay $942 for the 20-year bond. The expected flotation cost per bond is $42, and the firm is in the 34% tax bracket. Compute the followi..
What was your total real return on investment : You bought one of Great White Shark Repellant Co.’s 10 percent coupon bonds one year ago for $770. These bonds make annual payments and mature 7 years from now. Suppose you decide to sell your bonds today, when the required return on the bonds is 11 ..
What is supply net income : Dharma Supply has earnings before interest and taxes (EBIT) of $563,000, interest expenses of $259,000, and faces a corporate tax rate of 34 percent. What is Dharma Supply's net income? If it didn't have any debt, Dharma's net income is?
Describe the health concerns of the community : Describe the health concerns of the community.Identify current environmental risk assessment methods which apply to public health issues.
Calculate the margin of safety in dollars : Calculate expected profit.  Calculate the margin of safety in dollars.
Reasonable estimate for its after-tax cost of debt : Bedrick Co. Can borrow at an interest rate of 7.3% for a period of eight years. Its marginal federal-plus state tax rate is 40%. What is Bedrick's after-tax cost of debt? Bedrick Co. has an outstanding 10-year non-callable Bond with a face value of $..
How are research studies in the united states funded : How are research studies in the United States funded? Does the source of funding impact the focus or reported outcomes of the studies?

Reviews

Write a Review

Financial Management Questions & Answers

  It employs regular-dividend-plus-extras policy

In 2011 the Keenan Company paid dividends totaling $3,960,000 on net income of $18.8 million. Note that 2011 was a normal year and for the past 10 years, earnings have grown at a constant rate of 8%. It continues the 2011 dividend payout ratio. It em..

  Amount of funds year to cover anticipated cash outflow

The Great Giant Corp. has a management contract with its newly hired president. The contract requires a lump sum payment of $25,400,000 be paid to the president upon the completion of her first 8 years of service. The company wants to set aside an eq..

  Using the present worth on incremental investment

It is estimated that the annual heat-loss cost in a small power plant is $5,200. Two mutually exclusive proposals have been formulated that will reduce the loss. If the interest rate is 8% and the plant will benefit from the reduction in heat loss fo..

  Market value of equity and debt

Jonah’s Fishery has EBITDA of $67 million. Jonah’s market value of equity and debt is $433 million and $40 million, respectively. Jonah has cash on the balance sheet of $16 million. What is Jonah’s EV ratio?

  Maturity annualized spot rates

Consider the following annualized spot rates: Maturity Annualized Spot Rates. Based on this information calculate the implied six-month forward rate one-and-a-half years from now.

  What is the post-money valuation of the company

Simone founded her company using $150,000 of her own money, issuing herself 300,000 shares of stock. An angel investor bought an additional 200,000 shares for $100,000. She now sells another 500,000 shares of stock to a venture capitalist for $2 mill..

  Change the interest rate in small increments

If you save $165/mo. for the next 42 years at 12.5% how much will you have at the end of 42 years? If you borrow $105,000 to buy a house at 6.75% what will be the monthly payment on a 30 year mortgage? How much will you have to save per month at 11.5..

  Calculate the stocks coefficient of variation

One way to calculate a stock's beta is to- calculate the stock's coefficient of variation. calculate both the stock's mean return and the std.dev. of the returns.

  What is the projected effective gross income

You intend to develop a rental apartment building that has 100 units. It is in a good market and you will immediately fill it up, though with people moving in and out, and fixing up apartments between tenants, you have a typical vacancy rate of 5%. W..

  What is the default risk premium on the corporate bond

A Treasury bond that matures in 10 years has a yield of 5%. A 10-year corporate bond has a yield of 7.75%. Assume that the liquidity premium on the corporate bond is 0.4%. What is the default risk premium on the corporate bond?

  What is the stocks value if investors require rate of return

Assume that US Med ware is a constant growth company whose last dividend per share (D0) was $1.00. The dividend is expected to grow at a constant rate of 8 percent per year. What is the stock's value if investors require a 15 percent rate of return?

  Present value of an annuity stream-time value money

This assessment has two parts both addressing the subject of Time Value Money (TVM). Both parts should be submitted in the same paper. The main TVM problems relating to healthcare are: a) present value of a lump sum b) present value of an annuity str..

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