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What is the equity reinvestment rate

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Thomas Plc generated £100 million in net income during the year and reported £30 million in depreciation. The company also had £50 million in capital expenditures, its non-cash working capital increased from £20 to £30 million, and its debt increased by £20 million. At the end of last year, the book value of equity of Thomas Plc was £500 million, it had debt of £500 million and cash of £200 million. If the interest rate on cash balances is 2%, the cost of debt is 5%, the cost of equity is 10%, and the tax rate is 20%, what is the

Question a. Equity reinvestment rate?

Question b. Expected growth in net income for the company?

Reference no: EM132493159

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