Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Some finance questions I'm having trouble with. thanks so much in advance. Free Cash HOW Bailey Corporation's nancial statements {dollars and shares are in millions}

image text in transcribedimage text in transcribed

Some finance questions I'm having trouble with. thanks so much in advance.

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed
Free Cash HOW Bailey Corporation's nancial statements {dollars and shares are in millions} are pmvwded here. Balance Sheets as of December 31 2014 2013 AME Cash and equivalents S 15,000 $ 12,000 Amounts receivable 35,000 30,000 inventories 33,605 26,000 Total current assets $ 83,605 $ 68,000 Net plant and equipment 52,000 47,000 Tutal assets $135,505 $1 15,000 Liabilities and Equity Accounts payable $ 10,600 5 9,500 Notes payable 6,300 5,250 Accruals 7,400 7,000 Total current lwabilities $ 24,300 $ 21,150 Long-term bonds 10,000 Total debt at 34,300 Common stock (5,000 shares) 50,000 Retained earnings 41,305 Common equity $ 101,305 Total assetB $135,605 Income Statement for Year Ending December 31, 2014 Sales Operating costs excluding depreciation and amortization EBITDA Depreciation 81 amortization EBIT Interest EBT Taxes (40%) Net income 10,000 $ 31,?50 50,000 23,250 $ 03,250 $115,000 $232,000 190,000 $ 42,000 4,000 $ 38,000 550 $ 3?,450 14,930 $ 22,470 Dividends paid 4,415 Enter your answers in millions. For exampie, an answer of 525,000,000,000 should be entered as 25,000. a. What was net operating working capital for 2013 and 2014? 2013 $ miliiGn 2014 $ n'liliiGn a. What was Bailey's 2014 free cash ow? 5 million c. Constmct Bailey's 2014 statement of stockholders equity. Common stock Shares Amount Balances, 12:31,!13 million 3 million 2014 Net Income Cash Dividends Addition (Subtraction) to retained earnings Balances, 1331;14 milllon 5 million Retallled Earnings miliiG" miliiG" miliiG" miliiG" Total stockholders' Equity miill miill miill d. What was Bailey's 2014 EVA? Assume that its weighted average cost of capital is 10%. Round your answer to the nearest cent. :3 million e. What was Bailey's MVA at year-end 2014? Assume that its stock price at December 31, 2014 was $20. $ million

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Recommended Textbook for

Elements of Electromagnetics

Authors: Matthew

3rd Edition

019513477X, 978-0195134773

Students also viewed these Finance questions

Question

Where do your students find employment?

Answered: 1 week ago