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What is the cash flow from investing

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Reference no: EM132495260

Net Income 15,000

Depreciation Exp 2,000

Change in Operating Assets 1,200

Change in PP&E 2,000

Change in long-term liab. 1,200

Dividends paid 1,500

Question 1: What is the Cash Flow from Financing?

Question 2: What is the Cash Flow from Investing?

Net Income 121,000

Depreciation Expense 4,000

Accounts Receivable (30,000)

Change in net PP&E 15,000

Accounts Payable (5,000)

New bank loan 12,000

Dividends paid 1,500

Question 3: What is the current ratio given a balance sheet with the following account balances

Cash 10,000

Accounts Receivable 252,000

PP&E 725,000

Accounts Payable 93,000

Bank Loan 425,000

Common Stock 1,000,000

Question 4: A project plan has the following forecast results with a WACC of 11%

What is the Net Present Value?

Initial Outlay: -70,000

Year 1 13,000

Year 2 15,000

Year 3 18,000

Year 4 20,000

Year 5 25,000

Question 5: What is the internal rate of return given the following information about the project:

Initial Outlay -50,000

Year 1 20,000

Year 2 22,000

Year 3 18,000

Question 6: An investor purchases a share of stock for $82. She sells it in one year for $92 and receives a dividend of $2.95. What is the rate of return the investor achieved?

Question 7: A The expected return for a stock is 10% with a forecast growth rate of 2.5%. The company recently paid a dividend of $3.50. What is the highest price an investor should pay for the stock?

Question 8: What is the growth in the expected stock price change for a company is trying to value their stock's return in an uncertain economy. (Hint: use the same method for calculating Expected Return for different economic states) They need to use the most likely result for their planning. They estimate a 10% probability that will result in a stock price drop of 7%, a 60% probability for no change in the stock, and a 30% probability for a stock price increase of 15%

Question 9: Find the weighted after-tax cost of bonds given the following information:

Total Market Value = 500, bond market value is 200, Bond interest rate is 4.5%, tax rate is 30%

Question 10: A company has a balance sheet with the following information: A/R $500,000, Inventory $400,000, and Equipment (at net) of $1,000,000. It also has A/P of $250,000, long-term debt of $400,000, and owners' equity of $900,000. What is the Discretionary Financing Needed?

Question 11: Year A company has retained earnings of 2,500,000 at the end of 2018. Forecast income is 400,000 for 2019 and the company has a policy of having a dividend payout ratio of 17%. What is the forecast ending retained earnings at the end of 2019?

Question 12: What is the sustainable growth rate given the following?

Sales 100,000

Expenses 50,000

Tax rate 30%

Assets 400,000

Equity 200,000

Div Payout ratio 10%

Question 13: A project will generate additional sales of $50,000 per year. Expenses to support the increase of sales will be $32,000 with depreciation expense of $5,000. If the tax rate is 30%, what will the differential cash flow be?

Reference no: EM132495260

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