Question
Laiho Industries: Balance Sheets as of December 31 (thousands of dollars) 2021 2020 Cash $ 103,328 $ 89,775 Accounts receivable 99,869 83,630 Inventories 37,401 33,957
Laiho Industries: Balance Sheets as of December 31 (thousands of dollars) | ||||||
2021 | 2020 | |||||
Cash | $ | 103,328 | $ | 89,775 | ||
Accounts receivable | 99,869 | 83,630 | ||||
Inventories | 37,401 | 33,957 | ||||
Total current assets | $ | 240,598 | $ | 207,362 | ||
Net fixed assets | 67,281 | 41,134 | ||||
Total assets | $ | 307,879 | $ | 248,496 | ||
Accounts payable | $ | 28,883 | $ | 21,710 | ||
Accruals | 31,556 | 23,818 | ||||
Notes payable | 16,674 | 14,294 | ||||
Total current liabilities | $ | 77,113 | $ | 59,822 | ||
Long-term debt | 77,257 | 64,657 | ||||
Total liabilities | $ | 154,370 | $ | 124,479 | ||
Common stock | 102,000 | 92,000 | ||||
Retained earnings | 51,509 | 32,017 | ||||
Total common equity | $ | 153,509 | $ | 124,017 | ||
Total liabilities and equity | $ | 307,879 | $ | 248,496 |
Calculate 2020 and 2021 net operating working capital (NOWC) and 2021 free cash flow (FCF). Assume the firm has no excess cash.
NOWC2020: $ fill in the blank 41 thousand
NOWC2021: $ fill in the blank 42 thousand
FCF2021: $ fill in the blank 43 thousand
If Laiho increased its dividend payout ratio, what effect would this have on corporate taxes paid? What effect would this have on taxes paid by the company's shareholders?
If Laiho increased its dividend payout ratio, the firm would pay
morelessthe same amount of
- corporate taxes and the company's shareholders would paytaxes on the dividends they would receive.
Assume that the firm's after-tax cost of capital is 11.5%. What is the firm's 2021 EVA?
$ fill in the blank 46 thousand
Assume that the firm's stock price is $21 per share and that at year-end 2021 the firm has 10 million shares outstanding. What is the firm's MVA at year-end 2021?
$ fill in the blank 47 thousand
morelessthe same amount of
Step by Step Solution
There are 3 Steps involved in it
Step: 1
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