Reference no: EM13908775
Sales $8,000,000, operating costs excluding depreciation & amortization $4,400,000, EBITDA $3,600,000, Depreciation and amortization $800,000, EBIT $2,800,000, Taxes (40%) $880,000, and Net income $1,320,000.
The CEO would like to see higher sales and forecasted net income of $2,500,000. Assume that operating costs (excluding depreciation and amortization) are 5% of sales and that depreciation and amortization and interest expenses will increase by 10%. The tax rate which is at 40%, will remain the same. What level of sales would generate $2,500,000 in net income?
|
Identified number of promising projects
: A company has identified a number of promising projects, as indicated in Table 2. The cash flows for the first 2 years are shown (they are all negatives). The cash flows in later years are positive, and the net present value of each project is shown...
|
|
What will be new required rate of return
: Kazeem Systems Corp has a beta coefficient of 1.7 and a required rate of return of 15%. The market risk premium is currently 5%. If the inflation premium increases by 2 percentage points, and Kazeem acquires new assets which increase its beta by 50%,..
|
|
About the bond valuation
: (Bond Valuation) Crawford Inc. has two bond issues outstanding, both paying the same annual interest of $85, called Series A and Series B. Series A has a maturity of 12 years, whereas Series B has a maturity of 1 year. What would be the value of each..
|
|
Recreate the firms cash flow statement
: You are asked to recreate the firm's cash flow statement. The firm had $100,000 in the bank at the end of the prior year and its working capital accounts except cash remain constant during the year. What was the firm's end of the year cash balance? R..
|
|
What level of sales would generate in net income
: The CEO would like to see higher sales and forecasted net income of $2,500,000. Assume that operating costs (excluding depreciation and amortization) are 5% of sales and that depreciation and amortization and interest expenses will increase by 10%. T..
|
|
Hart company records standard costs in its accounts
: Refer to Exercise 23-8. Hart Company records standard costs in its accounts and its material variances in separate accounts when it assigns materials costs to the Goods in Process Inventory account. In Exercise 23-8, Hart Company made 3,000 bookshelv..
|
|
The interest rate is percent in similar quality loans
: Assume a bank loan requires an interest payment of $85 a year and principal payment of $1,000 at the end of the loan date/year life how much could this loan be sold for to another bank if the loans of similar quality care of a 8.5% interest rate that..
|
|
Offered the opportunity to invest in a project
: You have been offered the opportunity to invest in a project that will pay $4549 per year at the end of years one through three and $10305 per year at the end of years four and five. If the appropriate discount rate is 12.72 percent per year, what is..
|
|
Where do atheism and christianity agree and disagree on view
: What difference might someone's belief about the origin of the universe make in how the person lives his or her life?
|