What is the firm net operating profit after taxes

Assignment Help Finance Basics
Reference no: EM133112109

A firm has $100,000 in revenue. Cost of goods sold is $45,000 and depreciation expense is $25,000. The firm has issued $100,000 in bonds that yield 6%. It has 50,000 shares of common equity outstanding that currently sell for $1.50 each. The required rate of return on the company's stock is 9%. The firm's average tax rate is 30%. What is the firm's net operating profit after taxes (NOPATY?

Reference no: EM133112109

Questions Cloud

Calculate the net present value of cash flow stream : 1. Calculate the net present value (NPV) of the following cash flow stream if the required rate is 12%:
Ownership fraction based on today valuation : If a VC want to invest $2 Million today, what is the ownership fraction based on today valuation?
What were the balances of interest expense : If the balance of interest expense in the trial balance column was $800, what were the balances of interest expense in the adjusted trial balance
Enterprise value before the share repurchase : -Firm D is an all-equity firm. It currently has a stock price of $20 with 10 million shares outstanding. It has $100 million cash and no debt. Suppose firm D us
What is the firm net operating profit after taxes : A firm has $100,000 in revenue. Cost of goods sold is $45,000 and depreciation expense is $25,000. The firm has issued $100,000 in bonds that yield 6%. It has 5
What is total profit or loss : Little Friskies has an option that has a strike price of $26.20 and expires today. the value of the stock today is 30.38. When the option was quoted at 3.22, yo
Are G Ltd share options dilutive or anti-dilutive : Are G Ltd's share options dilutive or anti-dilutive? How do we compute diluted EPS for a company that has dilutive options
What is the maximum price : Here is a small part of the order book for Mesquite Foods:
Distribute cash to shareholders : Why would a company use simultaneously a dividend and a repurchase as ways to distribute cash to shareholders?

Reviews

Write a Review

Finance Basics Questions & Answers

  Explain the key reasons for purchasing mutual fund shares

Ray Sutton has worked in the management services division of Strategic Consultants for the last five years. He currently earns and yearly salary of about 95,000.

  Compute the realized rate of return for an investor

Compute the realized rate of return for an investor who purchased the bonds when they were issued and held them until they were called.

  What impact does this have on the efficient frontier

You have been hired at the investment firm of Bowers & Noon. Now add the risk-free asset. What impact does this have on the efficient frontier

  Compute the current price of the bonds

Compute the current price of the bonds if the present yield to maturity is

  Demand and supply functions and free-trade world price

Consider Island a small exporting country with the following demand and supply functions and the free-trade world price $12 per unit.

  Set up a trial equalization

The accompanying balances were removed from the record of Rahul on 31st March, 2003. You are asked for to set up a trial equalization as on that date in the best possible structure.

  Calculate the expected return and standard deviation

Stock A has expected return of 12 percent and standard deviation of 40 percent. Stock B has an expected return of 18% and standard deviation of 60%. The correlation coeffecient between stocks A and B is 0.2.

  What price should the bonds sell for

The Cardinal Corporation has bonds outstanding with 20 years to maturity and a par value of $1000. The bonds pay semi-annual coupon payments at a coupon rate.

  Net amount received by the corporation

If the spot rate at the time of maturity is A$.70, what is the net amount received by the corporation if it acts rationally?

  Compute the expected return of the s&p 500 index

The beta for the S&P 500 index, computed with respect to this tangency portfolio, is .54. Compute the expected return of the S&P 500 index, assuming that this 80%/20% mix really is the tangency portfolio when the risk-free rate is 5 percent.

  Describe the variability in conditions

After the participants completed a puzzle and ate the candy they were asked how delicious they thought the good was on a scale.

  What is the current bond price

The bonds make semiannual payments and have a par value of $1,000. If the YTM on these bonds is 6.3 percent, what is the current bond price?

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