Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Finance Corporate Valuation Need Answers Thx. All multiple-choice questions are based on the financial statement below. FINM3005 Unicycle Company: Financial Data Year (Smillion) 2020 (Actual)

image text in transcribed

image text in transcribed

image text in transcribed

Finance Corporate Valuation Need Answers Thx.

All multiple-choice questions are based on the financial statement below. FINM3005 Unicycle Company: Financial Data Year (Smillion) 2020 (Actual) 2021 (Forecast) 2022 (Forecast) Income Statement Sales of Unicycles 5500 600.0 700.0 Dividends Income 10.0 10.0 10.0 Cost of Goods Sold 220.0 -240.0 -280.0 SG&A Expenses (Operating) -130.0 -165.0 -180.0 Gain on Asset Sales -20.0 - 100 -5.0 Depreciation - 15.0 -20.0 -25.0 EBIT 175 0 175.0 220.0 Net Interest -140 -30.4 -329 Pre-Tax Profit 161.0 144.6 1871 Tax -48.3 -434 -561 Net Profit 112.7 101.2 131.0 Balance Sheet Assets Operating Cash and Equivalents Trade Receivables Inventory Financial Investments Property. Plant and Equipment Total Assets 45.0 1100 95.0 1500 500.0 9000 620 120.0 120.0 180.0 600.0 10820 700 140.0 140.0 200.0 700.0 12500 1200 3800 4000 900.0 180.0 410.8 491.2 1082.0 210.0 427 8 6122 1250.0 220 Funding Trade Payables Debt (Note: Trading at par) Ordinary Equity Total Funding Additional Information: Number of issued shares (in Million) Shares issued end of March 2020 (in Million) Share price Equity Beta Expected market return 10-year government bond yield Implied interest rate Tax rate Capital structure Assumptions for 2023 onwards: 60 $7.00 1.20 8.0% 20% 8.0% 30% Currently at fong-term target Growth of 3 0% (revenues, NOPLAT, FCF, etc) RONIC of 80% Tax rate of 30% applies to all income Al cash flows occur at year-end Fiscal year ends are also calendar year end's We are currently standing at the end of year 2020 Use beginning-of-the-year balance sheet values for ratio calculations og ROIC, E NOPLAT, / ICM ROA, = M/Total Asset Simplifying conventions What is the company's NOPLAT for the financial year 2022? What is the company's NOPLAT for the financial year 2022? Select one: O a. $147.0 O b. $157.5 O c. $154.0 O d. $210.0 O e. $150.5 What is the operating invested capital (IC) for financial year 2022? Select one: O a $1040.0 O b. $1050.0 O c. $840.0 O d. $1250.0 O e. $4122 What is the free cash flow from operations (FCF) for financial year 2022? Select one: O a. $7.5 O b. $32.5 O c. $50.5 O d. $2.5 e. $157.5 What is the Capital Turnover for financial year 2022? Select one: O a. 0.77 Ob. 0.78 O c. 0.97 O d. 0.83 Oe. 1.02

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Marketplace Lending Financial Analysis And The Future Of Credit Integration Profitability And Risk Management

Authors: Ioannis Akkizidis, Manuel Stagars

1st Edition

1119099161, 978-1119099161

More Books

Students also viewed these Finance questions

Question

e. What do you know about your ethnic background?

Answered: 1 week ago

Question

b. Why were these values considered important?

Answered: 1 week ago