Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please Answer all of the questions below with the Balance sheet. Laiho Industries: Balance sheet as of December 3 1 ( thousands of dollars )

Please Answer all of the questions below with the Balance sheet.
Laiho Industries: Balance sheet as of December 31(thousands of dollars)
A. Sales for 2023 were $455,150,000 and EBITDA was 15% of sales. Furthermore,
depreciation and amortization were 18% of net fixed assets, interest was $8,583,000,
the corporate tax rate was 25%, and Laiho pays 47.25% of its net income as dividends.
Given this information, construct the firm's 2023 income statement.
B. Construct the statement of stockholders' equity for the year ending December 31,2023, and the
2023 statement of cash flows.
C. Calculate 2022 and 2023 net operating working capital (NOWC) and 2023 free cash flow (FCF).
Assume the firm has no excess cash.
D. 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?|
E. Assume that the firm's stock price is $22 per share, and that at year-end 2023 the firm has 10
million shares outstanding. What is the firm's MVA at year-end 2023?
image text in transcribed

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_2

Step: 3

blur-text-image_3

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

Banking Secrecy And Global Finance

Authors: Donato Masciandaro, Olga Balakina

1st Edition

1137400099, 978-1137400093

More Books

Students also viewed these Finance questions

Question

What role does agency play in a partnership? In a corporation?

Answered: 1 week ago

Question

9. Describe the characteristics of power.

Answered: 1 week ago

Question

10. Describe the relationship between communication and power.

Answered: 1 week ago