Bailey Corporation recently reported the following income statement (dollars are in thousands): $ales Operating costs excluding depreciation

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Bailey Corporation recently reported the following income statement (dollars are in thousands):

$ales Operating costs excluding depreciation and amortization EBITDA Depreciation and amortization EBIT Interest EBT Taxes (40%)

Xet income

$14,000,000 7,000,000

$ 7,000,000 3,000,000

$ 4,000,000 1,500,000

$ 2,500,000 1,000,000

$ 1,500,000 Bailey's total operating capital is $20 billion and its after-tax cost of capital is 10 percent.

Therefore, Bailey's total after-tax dollar cost of operating capital is $2 billion. During the past year, Bailey made a $1.3 billion net investment in its operating capital.

a. What is Bailey's NOPAT for the year?

b. What is Bailey's net cash flow for the year?

c What is Bailey's operating cash flow for the year?

d. What is Bailey's tree cash flow tor the year?

e. What is Bailey's EVA tor the year?

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Fundamentals Of Financial Management Concise

ISBN: 9780324258721

4th Edition

Authors: Eugene F. Brigham, Joel F. Houston

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