Colter Steel has $5,300,000 in assets. Temporary current assets $ 2,600,000 Permanent current assets 1,580,000 Fixed assets 1,120,000 Total assets $ 5,300,000 Assume short-term interest rates are 11 percent and long-term rates are 2 percentage points lower than short-term rates. Earnings before interest and taxes are $1,120,000. The tax rate is 20 percent. If long-term financing is perfectly matched (synchronized) with long-term asset needs, and the same is true of short-term financing, what will earnings after taxes be? Earnings after taxes
Q: Kindly analyze the stock performance
A: Data given: 52 Week High=22.70 52 Week Low=18.00
Q: contract settles at $6.91/bu. How much money is put into or taken out of your margin account by the…
A: Please note that since the number of bushels that is hedged is not given, we are assuming that only…
Q: The financial staff of Cairn Communications has identified the following information for the first…
A: Projected sales are $22million Operating cost is $7million Depriciation is $4million Interest…
Q: Five years of realized returns for Falcon Freight Inc. (Falcon) are given in the following table:…
A: Average return refers is helpful in the measurement of the performance of the portfolio based on…
Q: General Electric has just issued a callable (at par) 10-year, 5.7% coupon bond with annual coupon…
A: Annual Coupon rate is 5.7% Time period is 10 years Curret Price of Bond is $102.43 Callable at par…
Q: Mortgages, loans taken to purchase a property, involve regular payments at fixed intervals and are…
A: House Cost = $1 Million Down Payment = $300,000 Mortgage = $700,000 Time Period = 30 Years Interest…
Q: John Doe buys 125 shares of Microgen Inc. at $35 a share and holds the stock for a year. Patricia…
A: The margin purchase of stocks refers to the practice of borrowing from a broker and then using the…
Q: Lucy Corporation is a calendar-year taxpayer with the following income and expense items for the…
A: Data given: Gross profit from sales 300000 Dividend received 30000 Salary expense 150000…
Q: Ishan and Hazel plan to retire at age 60 with a retirement income of $48,000 a year from their…
A: Retirement Income $48,000 Retire at age(Years) 60 Retirement Income Till(Years) 90 Quarterly…
Q: B eBook The J.R. Ryland Computer Company considering a plant expansion to enable the company to…
A: a) i) Expected Value of Medium scale = (50 * 0.20) +(150 * 0.20) + (200 * 0.6) = 10 + 30 + 120 = 160…
Q: What should the savings balance be at the end of the 5th month if the compound interest rate earned…
A: Information Provided: Initial deposit = $2000 Second deposit after 2 months = $2500 First…
Q: Leila is saving for her retirement by making deposits of $22,000 on each birthday into a savings…
A: Given, The annual deposits are $22,000 Effective annual rate is 3.3%
Q: . A company had cash and marketable securities worth $200,000 accounts payables worth $51,000,…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: o i need formulas Annual Interest Rate: 3.69% Length of Loan (in years): Loan Amount:…
A: Loans are paid by the equal installments and these installments carry the payment for interest and…
Q: Given an effective annual rate j₁ = 6.12500%, find the equivalent nominal rate ¡(12). O a. 4.82719%…
A: Effective annual rate is the rate where the interest is determined after considering the compounding…
Q: Table attached shows the historical returns for Companies A, B and C If one investor has a…
A: The expected return of the stock refers to the profits that the stock provides on average. It is…
Q: ould I expect a lump sum from a deal at the end of 3 years if I start investing today at amount of…
A: Future value of ordinary annuity is future lump sump amount to be received at the end of period…
Q: Lloyd Inc. has sales of $150,000, a net income of $16,500, and the following balance sheet: ROE wil…
A: We have undertake a transaction bring the current ratio to the target level. This will result into…
Q: 1. What is depreciation?
A: As per Bartleby guidelines, If multiple questions are posted, only the first 1 question will be…
Q: Two months ago, Thomasian Engineer TE had P5,000,000.00 in his UST Security Bank (USTSB) Account.…
A: Time Value of Money states that a dollar today is worth more than a dollar sometime later. This is…
Q: (Related to Checkpoint 9.1) (Floating-rate loans) The Bensington Glass Company entered into a loan…
A: Floating rate changes in every period depending on the reference point. When LIBOR is taken as a…
Q: You observe that the current interest rate on short-term U.S. Treasury bills is 4.86 percent. You…
A: Nominal rate = 0.0486 Inflation rate = 0.0165 Real rate of interest = ? Real rate of interest is…
Q: You currently have $300,000. You want to invest it in the following three assets: 10-year US…
A: Portfolio Return, Risk, and Sharpe Ratio: The return on the portfolio is the weighted average return…
Q: our grandfather wants to establish a scholarship in his father's name at a local university and has…
A: Perpetuity type of annuity pay the money forever and the present value of perpetuity depends on the…
Q: What is the per share value of an ETFs assets minus its liabilities?
A: We need to find the term that explains per share value of an ETFs assets minus its liabilities.
Q: counts Receivables ventory tal Current Asset tal Net Fixed Assets tal Assets 0 0 0 1422 61 Total…
A: Balance sheet shows the overall position of the firm in terms of assets and liabilities and equity…
Q: Convert the following cash flow pattern to a uniform series of end-of-year costs over a seven year…
A: The cash flow diagram here shows cash outflows. As the arrows are pointed downwards these are cash…
Q: You are trying to plan your investments for the next year. You have decided that the market will…
A: (Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the…
Q: Determine the risk-neutral value of a eight-month European put option to sell a FLB (First Local…
A: We have to price the put option. We will use the Black Scholes Option pricing model. It's a fairly…
Q: (Related to Checkpoint 9.6) (Inflation and interest rates) What would you expect the nominal rate of…
A: Real interest rate = 0.041 Inflation rate = 0.069 Nominal rate of interest = ? Nominal rate of…
Q: A firm has the following balances on the balance sheet: 2021 190,820 60,970 30,920 Net fixed assets…
A: Given, Sales of $1,500,000 Costs $905,000 Depreciation is $45000
Q: What should be the simple discount rate if a loan amount of P500,000 with a loan term of 3 years…
A: Loan amount (P) = P500,000 Loan proceeds (C) = P480,000 Loan term (t) = 3 Years Simple discount rate…
Q: A local entreprenuer asks you to invest $10,000 in a business venture. Based on your estimate, you…
A: Data given: Initial investment (Year 0) = $10,000 CF1=0 CF2=0 CF3=0 CF4=$4900 CF5=$14500
Q: A cash flow starts in year 1 at 5000 and increases by 500 each year through year 7. Determine the…
A: Now the cash flow increases by 500 per year. The formula for computing the cash flow from year 2…
Q: The XYZ company is a US-based MNC & deals with various financial instruments as its core business…
A: Speculators and arbitrageurs: Speculators take positions in a security with the aim of making a…
Q: At a recent company meeting, Geraldine Erwin, sales manager of Dastoria, a flavored-beverage…
A: Value of sales today is calculated using following equation Value of sales today = Sales six months…
Q: Joe is a new investor and has been closely watching a company by the name of USA Ltd., a…
A: Beta for USA ltd is 1.9 times. It means that If the overall market rises/falls by 1%, then USA ltd…
Q: Required information You need $6,000 on 4/1/2016 and you have two options. Option A: Borrow money…
A: A loan refers to the amount that is being given to the borrower by the lender in exchange if the…
Q: Maturity (years) YTM 5.03% 2 5.54% 3 5.73% 5.98% 6.06%
A: Risk free rate is the amount that can be earned without any risk and without any problem and bonds…
Q: You invested $5,000 in an account 16 years ago. This account paid 8% compounded monthly for the…
A: Given, Amount invested is $5,000 Term is 16 years
Q: Senyor Pigafetta borrowed today from Ginoong Lapulapu P300,000.00 and agreed to repay the loan with…
A: M = Mortgage amount P300,000.00 i = Monthly interest rate 0.01 (i.e. 0.12 / 12) t = Number of…
Q: In 1626, Dutchman Peter Minuit purchased Manhattan Island from a local Native American tribe.…
A: Given, The purchase price is $24 Rate is 5.5%
Q: what do you mean by proceeds in this question? is it only the interest calculated or the matured…
A: In the question, it was asked to calculate " Proceeds from redemption" Redemption means company…
Q: Solve and show solution. D
A: Concept. 1. HPR = ending price ÷ beginning price 2. HPY =( ending price - beginning price ) ÷…
Q: The COVID-19 pandemic is over, and you decide to celebrate by going on a vacation to Japan. The…
A: We have exchange rates between two currency for two different points in time. We have to see how one…
Q: Workman Software has 10.2 percent coupon bonds on the market with 16 years to maturity. The bonds…
A: Bonds are debt instruments that companies issue to raise funds. Companies pay fixed periodic coupons…
Q: Fill in the Balance Sheet. (Do not round intermediate calculations. Round your answers to 2 decimal…
A: As per Bartleby guidelines,If a question with multiple sub-parts are posted, first 3 sub-parts will…
Q: Identify whether the situations described in the following table are examples of uneven cash flows…
A: Annuity: These are periodic payments and the size of the payments is equal. Uneven Cash Flows:…
Q: . An investor can invest money with a particular bank and earn a stated interest rate of 4.40%;…
A: Nominal interest rate is interest rate without compounding but effective rate is considered after…
Q: 1) Calculate the present worth (P+) of the given cash flow, i= 10% 0 A- $100 3 $150 6 $200 7 $250 8…
A:
Colter Steel has $5,300,000 in assets.
Temporary current assets | $ 2,600,000 |
---|---|
Permanent current assets | 1,580,000 |
Fixed assets | 1,120,000 |
Total assets | $ 5,300,000 |
Assume short-term interest rates are 11 percent and long-term rates are 2 percentage points lower than short-term rates. Earnings before interest and taxes are $1,120,000. The tax rate is 20 percent.
If long-term financing is perfectly matched (synchronized) with long-term asset needs, and the same is true of short-term financing, what will earnings after taxes be?
Earnings after taxes |
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
- The Berndt Corporation expects to have sales of 12 million. Costs other than depreciation are expected to be 75% of sales, and depreciation is expected to be 1.5 million. All sales revenues will be collected in cash, and costs other than depreciation must be paid for during the year. Berndts federal-plus-state tax rate is 40%. Berndt has no debt. a. Set up an income statement. What is Berndts expected net income? Its expected net cash flow? b. Suppose Congress changed the tax laws so that Berndts depreciation expenses doubled. No changes in operations occurred. What would happen to reported profit and to net cash flow? c. Now suppose that Congress changed the tax laws such that, instead of doubling Berndts depreciation, it was reduced by 50%. How would profit and net cash flow be affected? d. If this were your company, would you prefer Congress to cause your depreciation expense to be doubled or halved? Why?Nighthawk Steel, a manufacturer of specialized tools, has $4,700,000 in assets. Temporary current assets Permanent current assets Capital assets $1,400,000 1,520,000 1,780,000 Total assets $4,700,000 Short-term rates are 10 percent. Long-term rates are 15 percent. (Note that long-term rates imply a return to any equity). Earnings before interest and taxes are $1,000,000. The tax rate is 20 percent. If long-term financing is perfectly matched (hedged) with long-term asset needs, and the same is true of short-term financing, what will earnings after taxes be? For an example of perfectly hedged plans, see Figure 6-8. Earnings after taxesColter Steel has $5,250,000 in assets. Temporary current assets. Permanent current assets Fixed assets Total assets $ 2,500,000 1,575,000. 1,175,000 $ 5,250,000 Assume short-term interest rates are 10 percent and long-term rates are 4 percentage points lower than short-term rates. Earnings before interest and taxes are $1,110,000. The tax rate is 40 percent. If long-term financing is perfectly matched (synchronized) with long-term asset needs, and the same is true of short-term financing. what will earnings after taxes be? Earnings after taxes
- Nighthawk Steel, a manufacturer of specialized tools, has $5,220,000 in assets. Temporary current assets Permanent current assets Capital assets Total assets $1,240,000 1,740,000 2,240,000 $5,220,000 Short-term rates are 4 percent. Long-term rates are 6.5 percent. (Note that long-term rates imply a return to any equity). Ear before interest and taxes are $1,080,000. The tax rate is 25 percent. Assume the term structure of interest rates becomes imm with short-term rates going to 9 percent and long-term rates 4.5 percentage points lower than short-term rates. If long-term financing is perfectly matched (hedged) with long-term asset needs, and the same is true of short-term financing, earnings be after taxes? Eor an example of perfectly hedged plans see Figure 6-8. Earning after taxes $Acer Systems, a manufacturer of gaming consoles, has $5,520,000 in assets. Temporary current assets Permanent current assets Capital assets Total assets $1,340,000 1,840,000 2,340,000 $5,520,000 Short-term rates are 5 percent. Long-term rates are 7.5 percent. (Note that long-term rates imply a return Earnings before interest and taxes are $1,130,000. The tax rate is 25 percent. Assume the term structure a becomes inverted, with short-term rates going to 10 percent and long-term rates 5 percentage points lowe rates. If long-term financing is perfectly matched (hedged) with long-term asset needs, and the same is true of sh what will earnings be after taxes? For an example of perfectly hedged plans, see Figure 6-8. Earning after taxes $Nighthawk Steel, a manufacturer of specialized tools, has $5,220,000 in assets. Temporary current assets Permanent current assets Capital assets Total assets $1,240,000 1,740,000 2,240,000 $5,220,000 Short-term rates are 4 percent. Long-term rates are 6.5 percent. (Note that long-term rates imply a return to any equity). Ear before interest and taxes are $1,080,000. The tax rate is 25 percent. Assume the term structure of interest rates becomes im with short-term rates going to 9 percent and long-term rates 4.5 percentage points lower than short-term rates. If long-term financing is perfectly matched (hedged) with long-term asset needs, and the same is true of short-term financing earnings be after taxes? For an example of perfectly hedged plans, see Figure 6-8. Earning after taxes $
- Colter Steel has $4,550,000 in assets. Temporary current assets $ 1,100,000 Permanent current assets 1,505,000 Fixed assets 1,945,000 Total assets $ 4,550,000 Assume the term structure of interest rates becomes inverted, with short-term rates going to 13 percent and long-term rates 2 percentage points lower than short-term rates. Earnings before interest and taxes are $970,000. The tax rate is 20 percent. If long-term financing is perfectly matched (synchronized) with long-term asset needs, and the same is true of short-term financing, what will earnings after taxes be?Nighthawk Steel, a manufacturer of specialized tools, has $5,040,000 in assets. Temporary current assets Permanent current assets Capital assets Total assets $1,180,000 1,680,000 2,180,000 $5,040,000 Short-term rates are 5 percent. Long-term rates are 7.5 percent. (Note that long-term rates imply a return to any equity). Earnings before interest and taxes are $1,050,000. The tax rate is 25 percent. Assume the term structure of interest rates becomes inverted, with short-term rates going to 10 percent and long-term rates 5 percentage points lower than short-term rates. If long-term financing is perfectly matched (hedged) with long-term asset needs, and the same is true of short-term financing, what will earnings be after taxes? For an example of perfectly hedged plans. see Figure 6-8 Earning after taxesNighthawk Steel, a manufacturer of specialized tools, has $4,950,000 in assets. Temporary current assets Permanent current assets Capital assets Total assets $1,900,000 1,545,000 1,505,000 $4,950,000 Short-term rates are 9 percent. Long-term rates are 14 percent. (Note that long-term rates imply a return to any equity). Earnings before interest and taxes are $1,050,000. The tax rate is 40 percent. If long-term financing is perfectly matched (hedged) with long-term asset needs, and the same is true of short-term financing, what will earnings after taxes bé? For an example of perfectly hedged plans, see Figure 6-8. Earnings after taxes
- S Nighthawk Steel, a manufacturer of specialized tools, has $4,950,000 in assets. Temporary current assets Permanent current assets Capital assets Total assets $1,900,000 1,545,000 1,505,000 $4,950,000 Short-term rates are 9 percent. Long-term rates are 14 percent. (Note that long-term rates imply a return to any equity). Earnings before interest and taxes are $1,050,000. The tax rate is 40 percent. If long-term financing is perfectly matched (hedged) with long-term asset needs, and the same is true of short-term financing, what will earnings after taxes be? Eor an example of perfectly hedged plans. see Figure 6-8. Earnings after taxeses Nighthawk Steel, a manufacturer of specialized tools, has $5,450,000 in assets. Temporary current assets Permanent current assets Capital assets Total assets $2,900,000 1,595,000 955,000 $5,450,000 Short-term rates are 7 percent. Long-term rates are 12 percent. (Note that long-term rates imply a return to any equity). Earnings before interest and taxes are $1,150,000. The tax rate is 20 percent. If long-term financing is perfectly matched (hedged) with long-term asset needs, and the same is true of short-term financing, what will earnings after taxes be? For an example of perfectly hedged plans, see Figure 6-8. Earnings after taxes $Nighthawk Steel, a manufacturer of specialized tools, has $4,200,000 in assets. Temporary current assets Permanent current assets Capital assets Total assets $1,000,000 2,000,000 1,200,000 $4,200,000 Short-term rates are 4 percent. Long-term rates are 6.5 percent. (Note that long-term rates imply a return to any equity). Earnings before interest and taxes are $860,000. The tax rate is 25 percent. Assume the term structure of interest rates becomes inverted, with short-term rates going to 9 percent and long-term rates 4.5 percentage points lower than short-term rates If long-term financing is perfectly matched (hedged) with long-term asset needs, and the same is true of short-term financing, what will earnings be after taxes? For an example of perfectly hedged planssee Figure 6-8. Earning after taxes $ 459,000.00 O