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Andru [333]
2 years ago
15

Tropetech Inc. has an expected net operating profit after taxes, EBIT(1 – T), of $2,400 million in the coming year. In addition,

the firm is expected to have net capital expenditures of $360 million, and net operating working capital (NOWC) is expected to increase by $45 million. How much free cash flow (FCF) is Tropetech Inc. expected to generate over the next year? $2,715 million $43,481 million $2,085 million $1,995 million Tropetech Inc.’s FCFs are expected to grow at a constant rate of 3.90% per year in the future. The market value of Tropetech Inc.’s outstanding debt is $11,510 million, and its preferred stocks’ value is $6,394 million. Tropetech Inc. has 675 million shares of common stock outstanding, and its weighted average cost of capital (WACC) equals 11.70%.
Business
1 answer:
WARRIOR [948]2 years ago
7 0

Answer:

Explanation:

The computation is shown below:

The free cash flow is

= Expected net operating profit after taxes - net capital expenditure - net operating working capital

= $2,400 million - $360 million - $45 million

= $1,995 million

Now the total firm value is

= Free cash flow ÷ (cost of capital - growth rate)  

= $1,995 million ÷ (11.70% - 3.90% )

= $1,995 million ÷ 7.8%

= $25,576.92 million

Now the intrinsic value of equity is

= Total firm value - outstanding debt - preferred stock

= $25,576.92 million - $11,510 million - $6,394 million

= $7,672.92 million

And, the intrinsic value per share

= $7,672.92 million ÷ 675 million shares

= $11.37 per share

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Quality Timber Pty Ltd is a well-established logging company. With below-average performance, their packaging department is cons
sashaice [31]

Answer:

Quality Timber Pty Ltd

In this scenario, the performance norms are _below-average____ and cohesiveness is _ high____, so productivity is _low___.

Explanation:

It has been established that group norms influence individual behavior and group performance.  Performance Norms refer to how a person should work in a given group and what his or her output should be.

Cohesion, according to wikipedia.com, "can be more specifically defined as the tendency for a group to be in unity while working towards a goal or to satisfy the emotional needs of its members."  Employees of the packaging department tend to be enjoying so much group cohesiveness.  But, they need to break some habits to focus on achieving corporate goals by increasing their productivity.

According to Paul Krugman of the Organization for Economic Co-operation and Development, "Productivity is commonly defined as a ratio between the output volume and the volume of inputs.  In other words, it measures how efficiently production inputs, such as labour and capital, are being used in an economy to produce a given level of output."  A rough assessment of the packaging department employees' performance shows low productivity, as they are "consistently behind schedule and take long lunch breaks, and frequently chat with co-workers," instead of concentrating on their jobs.

8 0
2 years ago
Rugrat Company has the following information for the current year: Beginning fixed manufacturing overhead in inventory $190,000
inessss [21]

Answer:

$140,000

Explanation:

The  difference between operating incomes under absorption costing and variable costing based on fixed expenses is shown below:

Variable costing:

Fixed manufacturing overhead in production $750,000

Absorption costing:

The Fixed cost would be

= Beginning fixed manufacturing overhead in inventory + Fixed manufacturing overhead in production - Ending fixed manufacturing overhead in inventory

= $190,000 + $750,000 - $50,000

= $890,000

So, the difference would be

= $890,000 - $750,000

= $140,000

8 0
2 years ago
Vince Lupino works for Best Supplies Company, which pays its employees time and a half for all hours worked in excess of 40 hour
ZanzabumX [31]

Answer and Explanation:

As per the given question the solution of given points is given here:-

a. Regular pay for the week = Rate of pay × Hours per week

= $12 × 40 hours

= $480.00

b. Overtime pay for the week = Rate of pay × 8 hours × 1.5 times

= $12 × 8 hours × 1.5 times

= $144.00

c. Total gross wages = (Social security withheld + Medicare tax withheld + Federal income tax withheld + Net pay)

= $38.69 + $9.05 + $54 + $522.6

= $624.00

d. Social security withheld = Total gross wages × Social security tax

= $624 × 6.2%

= $38.69

e. Medicare tax withheld = Total gross wage × Medicare tax rate

= $624 × 1.45%

= $9.05

f. Total withholding = Social security withheld + Medicare tax withheld + Federal income tax withheld

= $38.69 + $9.05 + $54

= $101.74

g. Net pay = Total gross wages - Total withholding

= $624.00 - $101.74

= $522.26

2. The Journal entry is here below:-

Wage Expense Dr, 624  

      To Social security taxes payable $38.69

      To Medicare Tax Payable $9.05

      To Federal Income Tax Payable $54

      To Wages Payable $522.26

(Being the payroll is recorded)

4 0
2 years ago
Sales reps are supposed to create a record on a child object of Opportunities called Survey Request when an Oppo rtunity is move
Gnoma [55]

Answer:

process builder( c )

Explanation:

The tool that can be used to create records and automate record creation after permissions have been removed by the system administrator is the " process builder"TOOL

The process builder tool allows for the development of processes that can be seen from a top view and this ensures that all steps taken in closing up a business deal can be seen all at once from the top. this tool is usually employed when a business is at the closing stages of a deal/business and the actions listed are highlighted

7 0
2 years ago
Read 2 more answers
Colin wants to set up an aquarium.. He already has a tank, but needs to purchase fish, filters, and plants. If the cost of the f
irakobra [83]

Answer:

option D

$148.2

Explanation:

Given in the question,

cost of fish = $84.79

cost of filter on sale = $44.75

cost of plants = $18.66

Total cost = $84.79 + $44.75 + $18.66

                = $148.2

5 0
2 years ago
Read 2 more answers
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