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please help me answer these questions. CHAPTER 2: FINANCIAL STATEMENTS 1. Assume the following: Revenue - $1,000,COGS $300, SGA- $200, EBIT - $400, Taxable income
please help me answer these questions. CHAPTER 2: FINANCIAL STATEMENTS 1. Assume the following: Revenue - $1,000,COGS $300, SGA- $200, EBIT - $400, Taxable income $350; Net Income $210. What is (a) Depreciation Expense; (b) Interest Expense; (c) Taxes(d) the firm's tax rate? 2. Assume the following: CA = $600; GFA $2,100; NFA - $1,900, NWC = $200, LT. Debt = $1,000 What is (a) TA; (b) AD; (c) CL; and (d) Owners' Equity? 3. With a tax rate of 35%, what is the impact on Ni and a firm's amount of cash from (a) an increase of depreciation expense of $100; and (b) a decrease in interest expense of 5100? 4. If Revenue = $120; COGS = $15; SGA = $12; Depreciation = $11; interest Expense = 50, and the tax rate is 40%, what is OCF? 5. Given the following: OCF = $20; ANWC = minus $5; ANFA = $10; Latest depreciation expense = SS; How much does this company have available to send to its investors? By what names is this measure known? 6. Assume the following: CFFA = $10; Dividends = $3; Long-term debt paid off in the amount of $5, Interest paid = $3. According to the Cash Flow Identity, did this company (a) issue or (b) repurchase stock and in what amount? 7. Assume the following: CFFA = $17; Dividends - $3; Stock repurchased in the amount of S6, Interest paid = $2. According to the Cash Flow Identity, did this company (a) add to (b) reduce its long-term debt and in what amount? CHAPTER 16: CAPITAL STRUCTURE 1. An all-equity firm currently has 2,000,000 shares of stock outstanding and is considering borrowing $6,000,000 at 8% and buying back one half of those shares. What amount of interest would the firm pay on this borrowing? 2. An all-equity firm currently has 2,000,000 shares of stock outstanding and is considering borrowing $6,000,000 at 8% and buying back one-half of those shares. What is the break-even EBIT assuming a tax rate of zero? 3. For the firm in #2 what is its EPS (a) before, and (b) after borrowing the $6,000,000 it its tax rate is zero and its EBIT is $1,000,000? 4. For the firm in #2 what is its EPS (a) before, and (b) after borrowing the $6,000,000 if its tax rate is zero and its EBIT is $800,000? 5. Given the answers to #53 and 4, what can you conclude about (a) the impact of borrowing on EPS, and (b) the role that the level of EBIT vs. its break even level plays in your answer to part (a) of this
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