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Case A For 2020, Solvent Corp. reported net sales of $ 415 million, 6% up from the previous year. Its operating profit (EBIT) amounted to
Case A For 2020, Solvent Corp. reported net sales of $ 415 million, 6% up from the previous year. Its operating profit (EBIT) amounted to $ 40 million in the same period. Due to substantial investments in net working capital, the company's net book value grew from $ 215 million to $ 230 million, while net fixed assets remained stable at $ 130 million. The firm managed to maintain its capital structure with a debt-to-equity ratio of 0.75 and a 40% Equity Ratio. Assuming a corporate income tax rate of 25% and interest rate of 5%, please determine the following: o Net Profit Margin (5 points) O Working Capital Requirement (WCR) and working capital ratio over sales for 2018 (5 points) O Post-tax Return On Invested Capital (ROIC) for 2020 (10 points) O Free Cash Flow (FCF) for 2020 (10 points)
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