10 OT Depot's capitalization amounted to $29,031 million. In 2012 debt investors received interest income of $648 million. Net income to shareholders was $4,487 million. (Assume a tax rate of 35%.) Calculate the economic value added assuming its cost of capital is 10%. (Do not round
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- nt i Net sales (all credit) Less: Cost of goods sold Gross profits Less: Other operating expenses EBITDA Less: Depreciation and amortization EBIT Less: Interest EBT Less: Taxes Net income Determine the firm's 2021 tax liability. Tax liability Oakdale Fashions, Inc.'s, 2021 income statement is reported below. (Use corporate tax rate of 21 percent for your calculations.) Oakdale Fashions, Inc., Income Statement for 2021 Determine the firm's 2021 net income. Net income $ 660,000 253,000 $ 407,000 128,000 $ 279,000 18,800 $ 260,200 89,500 $ 170,700 $ Saved < Prev K myPay 2 of 12 ww Next aos mefaECONOMICS At the end of 2011 Home Depot's total capitalization amounted to $29,031 million. In 2012 debt investors received interest income of $648 million. Net income to shareholders was $4,487 million. (Assume a tax rate of 35%.) Calculate the economic value added assuming its cost of capital is 10%. (Do not round intermediate calculations. Give your answer in millions rounded to 2 decimal places.)2- A rough rule of thumb for the chemical industry is that OMR 1 of annual sales required OMR 2 of fixed capital investment. In a chemical processing plant where this rule applies, the total capital investment is OMR 3200000 and the working capital is 18% of the total capital investment. The annual net total product cost amounts to 1500000 OMR. If the income tax rates on gross earnings total 21%, determine the following: (a) Percent of total capital investment returned annually as gross earning. (b) Percent of total capital investment returned annually as net profit.
- NPV Calculate the net present value (NPV) for the following 12-year projects. on the acceptability of each. Assume that the firm has a cost of capital of 7%. a. Initial investment is $1,000,000; cash inflows are $ 160,000 per Year b. Initial investment is $2,500,000; cash inflows are $320,000 per Year Using Excel to answer. Show all FormulasINR Ltd’s earnings per share next year is expected to be $2.10 and this is expected to grow at5% p.a. for the foreseeable future. Its required rate of return on equity has been estimated at 9%p.a. INR Ltd has a policy of reinvesting 40% of its earnings. The present value of INR Ltd’sgrowth opportunities is closest to: A. $7.78.B. $8.17.C. $11.11.D. $12.11IS Grong 15. If you purchased 10 shares of Goldman Sachs stock for $1,200 five years ago and continue to hold the stock today but its value has risen to $1,500, how much will you owe in capital gains tax on your 10 shares? Assume the tax rate on capital gains is set at 15%. A) $0 $45 C) $180 D) $225
- The Evanec Company's next expected dividend, Ds, is $2.76; ts growth rate c 4; and ts common stock now sells for $28.00. Nex stock (externa equity) can be sald to net 532.30 per share. a. What is Evanec's cost o retained earmings, r? Do not round intermediate calculations, Round your answer to two decimal places. places.A process plant making 5000kg /day of a product selling for $1.75 per kg has annual directproduction costs of $2 million at 100 percent capacity and other fixed costs of $700,000. What isthe fixed charge per kg at the break-even point? If the selling price of the product is increased by10 percent, what is the dollar increase in net profit at full capacity if the income tax rate is 35percent of gross earnings?The Amherst Company has a net profits of $11 million, sales of $194 milion, and 4.8 milion shares of common stock outstanding. The company has total assets of $115 milion and total stockholders' equity of $54 milion. It pays S1.08 per share in common dividends, and the stock trades at $20 per share, Given this information, determine the following a. Amherst's EPS. b. Amhersts book value per share and price-to-book-value ratio. c. The firm's PE ratio. d. The company's net profit margin. e. The stock's dividend payout ratio and its dividend yield. 1. The stock's PEG ratio, given that the company's aarnings have been growing at an average annual rate of 8.8%
- Assume that a firm has the following data for the year ended 12/31/2019: Sales: $300 Depreciation expense: $20 Interest expense: $40 Tax expense: $40 Net worth: $150 In addition, the company's net worth in 2018 was $150. Assume that in 2020, sales, cost of goods sold, and S, G, & A expenses remain the same, depreciation expense increases, interest expense increases, and tax expense decreases. Which of the following statements is true? 1. Gross margin will decrease. II. Operating margin will decrease. III. Net income will increase. IV. Return on beginning equity will increase. I only I and II only I, II and III only I, II, III, and IV5 Mr. H Salt purchased an 1/8 interest in a producing oil well for $45,000. Recoverable oil reserves for the well were estimated at that time at 15,000 barrels, 1/8 of which represented Mr. Salt's share of the reserves. During the subsequent year, Mr. Salt received $12000 as his 1/8 share of the gross income from the sale of 1000 barrels of oil. From this amount, he had to pay $3000 as his share of the expense of producing the oil. Compute Mr. Salt's depletion allowance for the year.Economics QUESTION 4 An asset with initial cost base of 6 million was bought 5 years ago. At the end of the current year (fifth year) the asset is sold by 1.1 million. The asset belongs to the 7 years MACRS property class. Knowing that the gains(loss) tax rate is 40%, what is the net proceeds resulted from selling this asset? $897,400 2,044,012 978,700 O 2,371,600