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Question 1 The revenues are given below. Operating margin is at 23%, tax rate at 24% and sales-to- capital of 1.6. Find the cash
Question 1 The revenues are given below. Operating margin is at 23%, tax rate at 24% and sales-to- capital of 1.6. Find the cash flow to the firm in year 4. 0 2 3 4 76,559 68,903 79,239 91,124 104,793 9775 2172 18318 15894 Question 2 The revenues are given below. Operating margin is at 23%, tax rate at 24% and sales-to- capital of 1.6. Find the reinvestment rate in year 4. 0 1 76,559 68,903 2 79,239 3 4 91,124 104,793 O 66.1 0.16 0.467 12.1 Question 3 5 pts Tim Atte 5 pts 5 pts Building on the previous question. In steady state, it is assumed that the revenues will grow at 2 percent/year. Operating margin and taxes will remain at the current rates. If the WACC=ROIC in steady state is assumed to be 8 percent, what is the reinvestment rate in the terminal year? 0.25 0.20 0.02 0.025 D Question 4 Using the information from questions 1-3, compute the terminal year cash flow. 18684 14013 O 4671 14988 5 pts 1 H
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