You are provided with the following pro-forma income statements and balance sheets (at year end) for FXC. All figures a
Posted: Mon May 02, 2022 6:43 am
You are provided with the following pro-forma income
statements and balance sheets (at year end) for FXC. All
figures are in ¥ million.
(a) Calculate the FXC’s Free Cash Flow in 2015. Assume
that the tax rate is 25% and that all the cash is excess cash
(not needed for operations).
(b) Assume that investors require a 15% rate of return
on companies of the same risk as SUL, and that the company
has 50 million shares outstanding. What will FXC 's share price be
on 12/31/2014 if, for each year after 2015, NOPLAT remains
constant, FXC stops all working capital investment and invests
in PP&E only to the extent of depreciation in the same
year?
Year 2015 Total Liabilities and INCOME Equity 550.0 STATEMENT Year 2014 330,0 55.0 Sales 500.0 52.5 Cost of Goods Sold 300.0 Selling Expenses 50.0 112.5 Depreciation 50.0 2.0 EBIT 100.0 25.1 Interest Income 30.4 Interest Expense 24.0 59.0 Taxes 26.5 31/12/2015 Net Income 51.5 2.0 20.0 BALANCE SHEET 31/12/2014 44.0 33.0 Cash 20.0 Accounts Receivable 40.0 Inventory 30.0 97.0 525.0 Total Current Assets 90.0 Net PP&E (Property, 500.0 Plants & Equipments 622.0 25.0 33.0 Total Assets 590.0 Short Term Debt Accounts Payable 25.0 30.0 58.0 183.8 241.8 Total Current 55.0 Liabilities Long Term 175.0 Debt 230.0 380.3 62 2.0 360.0 Total Liabilities 590.0 Equity
statements and balance sheets (at year end) for FXC. All
figures are in ¥ million.
- You Are Provided With The Following Pro Forma Income Statements And Balance Sheets At Year End For Fxc All Figures A 1 (39.75 KiB) Viewed 40 times
that the tax rate is 25% and that all the cash is excess cash
(not needed for operations).
(b) Assume that investors require a 15% rate of return
on companies of the same risk as SUL, and that the company
has 50 million shares outstanding. What will FXC 's share price be
on 12/31/2014 if, for each year after 2015, NOPLAT remains
constant, FXC stops all working capital investment and invests
in PP&E only to the extent of depreciation in the same
year?
Year 2015 Total Liabilities and INCOME Equity 550.0 STATEMENT Year 2014 330,0 55.0 Sales 500.0 52.5 Cost of Goods Sold 300.0 Selling Expenses 50.0 112.5 Depreciation 50.0 2.0 EBIT 100.0 25.1 Interest Income 30.4 Interest Expense 24.0 59.0 Taxes 26.5 31/12/2015 Net Income 51.5 2.0 20.0 BALANCE SHEET 31/12/2014 44.0 33.0 Cash 20.0 Accounts Receivable 40.0 Inventory 30.0 97.0 525.0 Total Current Assets 90.0 Net PP&E (Property, 500.0 Plants & Equipments 622.0 25.0 33.0 Total Assets 590.0 Short Term Debt Accounts Payable 25.0 30.0 58.0 183.8 241.8 Total Current 55.0 Liabilities Long Term 175.0 Debt 230.0 380.3 62 2.0 360.0 Total Liabilities 590.0 Equity