Question
In 2020, Moldex had sales of $300 million.Operating costs, depreciation and interest were $190 million, $40 million and $15 million respectively. It's corporate tax rate
In 2020, Moldex had sales of $300 million.Operating costs, depreciation and interest were $190 million, $40 million and $15 million respectively. It's corporate tax rate is 40%. The company reported $40 million in operating current assets and $14 million in operating current liabilities. It also reported net property, plant and equipment of $65 million Preferred Shares of $80 million and paid $4 million in preferred dividends.
For 2019, net operating working capital was $30 million, net property, plant and equipment was $60 million and Preferred Shares of $90 million.
Net investment in operating capital during 2020 was $1 million.
Required:
With respect to 2020:
(a) What was the company's net income?
(b) What was the company's NOPAT?
(c) What was the company's Free Cash Flows from Operations?
(d) What was the gross investment in property, plant and equipment during the year?
(e) What was the company's Free Cash Flow to the Firm for the year?
(f) What is the company's Free Cash Flow to Common Equity for the year?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
A financial analysis question Lets break down the problem step by step Part a Net Income 1 Operating ...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started