Bailey Corporation recently reported the following income statement (dollars are in thousands): $ales Operating costs excluding depreciation
Question:
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?
Step by Step Answer:
Fundamentals Of Financial Management Concise
ISBN: 9780324258721
4th Edition
Authors: Eugene F. Brigham, Joel F. Houston