User Account

All Pages

What is the company depreciation expense

Assignment Help Finance Basics
Reference no: EM132478368

Last year, Nast Company had net operating profit after-taxes (NOPAT) of $300 million. Its EBITDA was $500 million and net income amounted to $300 million. During the year, Nast made $100 million in net capital expenditures (remember that net capital expenditures equal gross capital expenditures less depreciation), and its net operating working capital increased by $10 million. Finally, Nast's finance staff has concluded that the firm's total after-tax capital costs were $175 million (which is calculated by multiplying the company's WACC by its total invested capital), and its tax rate is 25%. Assume that the company does not have any amortization charges. Based upon this information, answer the following four questions.

a. What is the company's depreciation expense?

b. What is the company's interest expense?

c. What is the company's free cash flow?

d. What is the company's EVA?

Reference no: EM132478368

Questions Cloud

Determine records cash receipts originally recorded : Records show that $3,600 of cash receipts originally recorded as unearned studio Revenue had been earned as of December 31.
Annuity payment and ear : You want to buy a car, and a local bank will lend you $35,000. The loan would be fully amortized over 4 years (48 months), and the nominal interest rate
Inherent risk of capital budgeting : What are the different methods of Capital Budgeting in consideration of the inherent risk of capital budgeting.
Calculate the system npv : Assume the firm has 5% cost of capital. Calculate the system's NPV. How would I set up the formula?
What is the company depreciation expense : a. What is the company's depreciation expense? b. What is the company's interest expense?
What reported value of company a investment in compant b : The fair market value of the investment on 12/31/15 was 90,000. What is the reported value of company A's investment in company B?
Beneficial for me to invest in hsbc : For instance, would it be beneficial for me to invest in HSBC(005) stock, like would you support it, why or why not?
Compute cost of ending inventory and cost of goods sold : Assuming the price level increased from 1.00 at January 1 to 1.50 at December 31, 2021, Compute cost of ending inventory and cost of goods sold
How china while preserving a space for tradition and unity : Student in China during the May 4th and New Cultural Movement, which thinker or ideas do you imagine would have had the greatest impact on you?

Reviews

Write a Review

Finance Basics Questions & Answers

  Relationship between default risk and bond ratings

Explain the relationship between default risk and bond ratings. Please explain thoroughly.

  Make a decision on whether or not to go ahead

Rondo, make a decision on whether or not to go ahead with a project. I'd like you to do a net present value (NPV) analysis on this special production project. The project will require an initial investment in a piece of manufacturing equipment. The p..

  What was swan depreciation and amortization expense

Swan's Bicycle Boats had a degree of accounting operating leverage equal to 1.50 during the most recent period. If the firm's EBITDA was $5,000 and its fixed costs were equal to $1,750, then what was Swan's depreciation and amortization expense du..

  What would the operating margin have to be for the firm

If the overall size of the market is $ 200 million, the firm's cost of capital is 12% and the typical life of a project in the firm is 15 years.

  What are some advantage businesses

What are some advantage businesses have when they communicate with their customer online?

  What is the firm dividend yield

The shares of the Dyer Drilling Co. sell for $40. The firm has a P/E ratio of 20. Sixty percent of earnings is paid out in dividends.

  Should ccc take the discount

The supplier is now offering a quantity discount of $0.03 per gallon if CCC orders 10,000 gallons at a time. Should CCC take the discount? WHY?

  What is the yield to maturity

Interest rates have declined since it was issued, and it is now selling at 111.545% of par, or $1,115.45. What is the yield to maturity?

  Describe the impact of the solicitation process

Based on Cost and Price analysis for contractors, subcontractors, and government agencies:Describe the impact of the solicitation process and how it determines the preparation of your bid.

  The current price is 48 per share and there are four

gates window mfg. is considering a rights offer. the company has determined that the ex-rights price would be 45. the

  Price the bonds from the above table with quarterly coupon

Price the bonds from the above table with quarterly coupon payments.

  Primary goal of investor-owned corporations

What is the primary goal of investor-owned corporations? Most Not-for-profit healthcare corporations?

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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