Sora Industries has 60 million outstanding shares, $120 million in debt, S40 million in cash, and the following proj Year 1 3 4 Earnings and FCF Forecast ($ million) 1 Sales 433.0 468.0 516.0 547.0 574.3 2 Growth vs. Prior Year 8.1% 10.3% 6.0% 5.0%
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- Ogier Incorporated currently has $800 million in sales, which are projected to grow by 10% in Year 1 and by 5% in Year 2. Its operating profitability ratio (OP) is 10%, and its capital requirement ratio (CR) is 80%? What are the projected sales in Years 1 and 2? What are the projected amounts of net operating profit after taxes (NOPAT) for Years 1 and 2? What are the projected amounts of total net operating capital (OpCap) for Years 1 and 2? What is the projected FCF for Year 2?Strickler Technology is considering changes in its working capital policies to improve its cash flow cycle. Stricklers sales last year were 3,250,000 (all on credit), and its net profit margin was 7%. Its inventory turnover was 6.0 times during the year, and its DSO was 41 days. Its annual cost of goods sold was 1,800,000. The firm had fixed assets totaling 535,000. Stricklers payables deferral period is 45 days. a. Calculate Stricklers cash conversion cycle. b. Assuming Strickler holds negligible amounts of cash and marketable securities, calculate its total assets turnover and ROA. c. Suppose Stricklers managers believe the annual inventory turnover can be raised to 9 times without affecting sale or profit margins. What would Stricklers cash conversion cycle, total assets turnover, and ROA have been if the inventory turnover had been 9 for the year?The forecast for Global Exports' free cash flows for next year is provided in the table below. Selected Financial Information Global Exports Inc. ($000s) Operating Cash Flow Net Working Capital CAPEX Debt Shares Outstanding O $7.32 O $6.74 Assume that free cash flow is paid at the end of each year and we are at the beginning of next year. Last year's values are for the year end yesterday. Analysts expect Global Exports' cash flow to grow at 1% in perpetuity. The WACC for Global is 8%. What is the fair price for Global Exports' shares today? O $6.14 Last Year 93,435 325,000 22,876 450,255 50,000 O $6.85 Next Year 103,462 344,000 28,975 485,850 50,000
- A company expects sales of $420 million next year assuming a 20% increase from the previous year. The firm anticipates $29.17 million in retained earnings after taxes and dividends have been paid, assuming that $1 million in depreciation expense have been deducted. Working capital is expected to represent 40% of change in sales. Required: Determine the amount of surplus (or deficit) in funds. k (INPUT YOUR ANSWER IN K, ROUNDED TO 2 DECIMAL PLACES. FOR EXAMPLE: 1.23. USE THE MINUS SIGN TO INDICATE A NEGATIVE ANSWER. FOR EXAMPLE: -1.23)The forecast for Global Exports’ free cash flows for next year is provided in the table below. Selected Financial Information Global Exports Inc. ($000s) Last Year Next Year Operating Cash Flow 74,230 78,076 Net Working Capital -12,240 -13,460 CAPEX 8,720 15,400 Debt 80,100 100,200 Shares Outstanding 10,000 10,000 Assume that free cash flow is paid at the end of each year and we are at the beginning of next year. Last year’s values are for the year end yesterday. Analysts expect Global Exports’ cash flow to grow at 3% in perpetuity. The WACC for Global is 11%. What is the fair price for Global Exports’ shares today? Responses $62.37 $62.37 $69.85 $69.85 $73.27 $73.27 $71.86 Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.A company is projected to generate revenues of $304 million and $423 million over the next two years. After that, the company is assumed to enter its terminal phase with steady growth. Given the following information, how much is each share worth today? Answer in dollars rounded to one decimal place. Forecasted operating margin: 43.2%. Forecasted tax rate: 18.3%. Forecasted reinvestment rate: 57%. Forecasted steady growth rate of free cash flow: 1.7% per year. Cost of capital: 9.2%. Debt: $34 million. Cash: $29 million. Shares outstanding: 13 million.
- Using AFN formula in financial forecasting approach, given the following accounting information assuming that the firm's profit margin remains constant and the company is at full capacity. Sales = 6,000,000 Percentage increase projected for next year sales = 20% Net income this year = 600,000 Retention ratio = 50% Accounts Payabale = 1,100,000 Notes Payable = 180,000 Accrued expenses = 500,000 Projected excess funds available next year is = 200,000 Spontaneous liabilities increase is?Using AFN formula in financial forecasting approach, given the following accounting information assuming that the firm's profit margin remains constant and the company is at full capacity. Sales = 6,000,000 Percentage increase projected for next year sales = 20% Net income this year = 600,000 Retention ratio = 50% Accounts Payabale = 1,100,000 Notes Payable = 180,000 Accrued expenses = 500,000 Projected excess funds available next year is = 200,000 Total assets amounted to?Suppose that Gyp Sum Industries currently has the balance sheet shown below, and that sales for the year just ended were $10 million. The firm also has a profit margin of 25 percent, a retention ratio of 30 percent, and expects sales of $8 million next year. Assets Current assets Fixed assets Total assets Liabilities and Equity Additional funds needed Current liabilities $2,000,000 4,000,000 Long-term debt Equity $6,000,000 Total liabilities and equity $1,500,000 1,500,000 3,000,000 $6,000,000 If all assets and current liabilities are expected to shrink with sales, what amount of additional funds will Gyp Sum need from external sources to fund the expected growth? (Enter your answer in dollars not in millions. Negative amount should be indicated by a minus sign.)
- Sora Industries has 62 million outstanding shares, $130 million in debt, $51 million in cash, and the following projected free cash flow for the next four years: Year Earnings and FCF Forecast ($ million) 1 Sales 2 Growth vs. Prior Year 3 Cost of Goods Sold 4 Gross Profit 5 Selling, General, & Admin. 6 Depreciation 7 EBIT 8 Less: Income Tax at 40% 0 433.0 1 468.0 8.1% (313.6) 154.4 (93.6) (7.0) 53.8 (21.5) 2 516.0 10.3% (345.7) 170.3 (103.2) (7.5) 59.6 (23.8) 3 547.0 6.0% (366.5) 180.5 (109.4) (9.0) 62.1 (24.8) 4 574.3 5.0% (384.8) 189.5 (114.9) (9.5) 65.2 (26.1) a. Suppose Sora's revenue and free cash flow are expected to grow at a 5.6% rate beyond year four. If Sora's weighted average cost of capital is 11.0%, what is the value of Sora stock based on this information? The stock price for this case is $. (Round to the nearest cent.)Using the AFN formula in financial forecasting approach, Determine the following for Piano Co. given the following accounting information assuming that the firm’s profit margin remains constant and the company is at full capacity. · Sales this year is P6,000,000· Percentage increase projected for next year sales = 20%· Net income this year amounts to P600,000· Retention ratio = 50%· Accounts payable = P1,100,000· Notes payable = P180,000· Accrued expenses = P500,000· Projected excess funds available next year is determined to be P200,000 Questions: 1. Determine the spontaneous liabilities increase. 2. How much is the increase in Retained Earnings? 3. How much is the total assets?Consider the following information that you propose to use to obtain an estimate of year 2004 EPS for the MacLog Company. Estimated Year 2019 Year 2020 GDP 11,000 Billion GDP growth 3.5% Sales per share $800 Operating profit margin 12% Depreciation/Fixed Assets 14% Fixed asset turnover 2 Interest rate 3.5% Total asset turnover 0.7 Debt/Total assets 45% Tax rate 36% In addition, a regression analysis indicates the following relationship between growth in sales per share for MacLog, and GDP growth is %Δ Sales per share = 0.015 + 0.75(%Δ GDP) Refer to Exhibit 9.6. Calculate the firm's level of Total Assets per share for the year 2020. a. $1,385.77 b. $1,113.58 c. $1,050.65 d. $1,065.67 e. $1,190.06