Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

QI) ZREX Corporation has net sales of $743,000 at the end of 2019. During this period, cost of good sold (COGS) is $443,000 and depreciation

image text in transcribed
QI) ZREX Corporation has net sales of $743,000 at the end of 2019. During this period, cost of good sold (COGS) is $443,000 and depreciation is $88,570. Interest paid by ZREX in 2019 is 9% of its long-term debt. Finally, effective corporate tax rate for New Robotic Corporation is 20%. Following is the Balance Sheet of ZREX 2019 and 2018 respectively. 2019 57.400 5 2018 00 motele Test 1931 a) What is the Net Income of ZREX Corporation in 2019? (5pts) Sales: COGS EBITDA: Tax (20% b) What is the OCF of ZREX Corporation in 2019? (5pts) c) What is the CAPEX of ZREX Corporation between 2019 and 2018? (5pts) d) What is the Change in Working Capital of ZREX Corporation between 2019 and 2018? (5pts) e) What is the FCF of ZREX Corporation? (5pts) f) Challenge Question-Extra Credit: Free Cash Flows are projected to grow by 10% for three years following 2019 and 4% after then (forever). What would be the stock price of ZREX Corporation, if discount rate is 8% and number of shares outstanding is 100,000? (Bonus:10pts) QI) ZREX Corporation has net sales of $743,000 at the end of 2019. During this period, cost of good sold (COGS) is $443,000 and depreciation is $88,570. Interest paid by ZREX in 2019 is 9% of its long-term debt. Finally, effective corporate tax rate for New Robotic Corporation is 20%. Following is the Balance Sheet of ZREX 2019 and 2018 respectively. 2019 57.400 5 2018 00 motele Test 1931 a) What is the Net Income of ZREX Corporation in 2019? (5pts) Sales: COGS EBITDA: Tax (20% b) What is the OCF of ZREX Corporation in 2019? (5pts) c) What is the CAPEX of ZREX Corporation between 2019 and 2018? (5pts) d) What is the Change in Working Capital of ZREX Corporation between 2019 and 2018? (5pts) e) What is the FCF of ZREX Corporation? (5pts) f) Challenge Question-Extra Credit: Free Cash Flows are projected to grow by 10% for three years following 2019 and 4% after then (forever). What would be the stock price of ZREX Corporation, if discount rate is 8% and number of shares outstanding is 100,000? (Bonus:10pts)

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

Students also viewed these Accounting questions