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25. Given the summarized financial information below, calculate the Net Operating Profit After Taxes (NOPAT) for the Clean as a Whistle Corporation (they manufacture toilet
25. Given the summarized financial information below, calculate the Net Operating Profit After Taxes (NOPAT) for the Clean as a Whistle Corporation (they manufacture toilet paper). Assume a corporate income tax rate of 30% (24% federal and 6% state tax). Also assume that the beta for the common stock of this company is 1.40, the risk-free rate of return is 1.5% per year, and the expected market risk premium is 5%. The current stock price is $180 per share, and there are 10 Million shares outstanding. The average yield to maturity of the company debt is 6%, and the outstanding debt is priced at 100% of par (i.e., the book value of debt is equal to the market value of debt). (4 points) Sales Cost of Sales Depreciation Operating Income (EBIT) Interest Earnings Before Tax (EBT) Taxes @ 30% Net Income $ Million 1000 690 100 210 10 200 60 140 Accounts Receivable Inventory Net Assets Total Assets 200 400 600 1200 Accounts Payable Current Portion of Long-Term Debt Long-Term Debt (LTD Total Equity Total Liabilities and Owners Equity 200 50 400 550 1200
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