Question
ABC is a publicly traded company listed on NASDAQ. In ABCs 10-Q and 10-K public statements, ABC disclosed that it recorded a $200 mil. pre-tax
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ABC is a publicly traded company listed on NASDAQ. In ABCs 10-Q and 10-K public statements, ABC disclosed that it recorded a $200 mil. pre-tax inventory write-off due to fire in the companys warehouse in 2020:Q3; it realized a $30 mil. pre-tax gain (other income) on the sale of a non-core business in 2020:Q3; The company additionally realized a $50 mil. pre-tax gain (other income) on the sale of a non-core business and $45 mil. pre-tax restructuring costs in connection with a downsizing strategy in 2020:Q4. ABC company produced the following reported year-to-date (YTD) income statements during 2020-2021 period.
Reported YTD Income Statement (in mil. dollars) 2020:Q3 2020:Q4 2021:Q3 Sales 3,500 4100 3600 COGS 2,200 2925 3000 Other Income 50 90 40 SG&A 675 700 120 Restructuring Charge 0 45 0 EBIT 675 520 520 Interest Expense 75 102 73 Pre-tax Income 600 418 447 Income Tax (30%) 180 125.4 134.1 Net Income 420 293 313
ABC has 150 mil. basic outstanding shares, with current stock price of $32 per share. The company has the following information about the options/warrants:
Tranche Number of Shares (mil.) Exercise Price Tranche 1 15 $ 5.00 Tranche 2 10 $ 25.00 Tranche 3 20 $ 30.00 Tranche 4 12 $ 35.00 Tranche 5 11 $ 47.00 Tranche 6 5 $ 55.00
What is the amount of ABC's LTM Net Income?
A. 202
B. 104
C. 224
D. 182
E. 120
ABC is a publicly traded company listed on NASDAQ. In ABCs 10-Q and 10-K public statements, ABC disclosed that it recorded a $200 mil. pre-tax inventory write-off due to fire in the companys warehouse in 2020:Q3; it realized a $30 mil. pre-tax gain (other income) on the sale of a non-core business in 2020:Q3; The company additionally realized a $50 mil. pre-tax gain (other income) on the sale of a non-core business and $45 mil. pre-tax restructuring costs in connection with a downsizing strategy in 2020:Q4. ABC company produced the following reported year-to-date (YTD) income statements during 2020-2021 period.
| Reported YTD Income Statement (in mil. dollars) | |||
| 2020:Q3 | 2020:Q4 | 2021:Q3 | |
| Sales | 3,500 | 4100 | 3600 |
| COGS | 2,200 | 2925 | 3000 |
| Other Income | 50 | 90 | 40 |
| SG&A | 675 | 700 | 120 |
| Restructuring Charge | 0 | 45 | 0 |
| EBIT | 675 | 520 | 520 |
| Interest Expense | 75 | 102 | 73 |
| Pre-tax Income | 600 | 418 | 447 |
| Income Tax (30%) | 180 | 125.4 | 134.1 |
| Net Income | 420 | 293 | 313 |
ABC has 150 mil. basic outstanding shares, with current stock price of $32 per share. The company has the following information about the options/warrants:
| Tranche | Number of Shares (mil.) | Exercise Price |
| Tranche 1 | 15 | $ 5.00 |
| Tranche 2 | 10 | $ 25.00 |
| Tranche 3 | 20 | $ 30.00 |
| Tranche 4 | 12 | $ 35.00 |
| Tranche 5 | 11 | $ 47.00 |
| Tranche 6 | 5 | $ 55.00 |
What is the amount of ABC's LTM Net Income?
| A. | 202 | |
| B. | 104 | |
| C. | 224 | |
| D. | 182 | |
| E. | 120 |
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Finance For Housing An Introduction
Authors: Cathy Davis
1st Edition
1447306481, 978-1447306481
