HW 1 - 38% 18,333,333 + 35% 5. Using the above corporate...

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Finance 335 Homework #1 Using the income statement and balance sheet on the next page answer the following. 1. Assuming there are 20 million shares outstanding, calculate EPS, Dividends per share, Book value per share, NOWC, and net cash flow for 2010. 2. Assuming a tax rate of 40%, calculate NOPAT and operating cash flows for 2010. 3. If the price per share of common stock is $35 (shares = 20 million), calculate the MVA for 2010. 4. a. Find operating capital for 2010. b. If the after tax cost of capital is 11%, calculate the EVA for 2010. Taxable Income Marginal Tax Rates $0 - 50,000 15% 50,001 - 75,000 25% 75,001 - 100,000 34% 100,001 - 335,000 39% 335,001 - 10,000,000 34% 10,000,001 - 15,000,000 35% 15,000,001 - 18,333,333
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Unformatted text preview: 38% 18,333,333 + 35% 5. Using the above corporate tax table calculate the tax on $17.5 million in taxable income. 6. What is the marginal tax rate and average tax rate for the corporate tax payer in #5. 1 Income Statement ($ millions) 2010 Revenues 700 Operating Costs 300 Depreciation 100 Amortization EBIT Interest Expense _ EBT 220 Taxes (40%) ____ Net Income $ Dividends Add to RE 112 Balance Sheet Cash $ 30 Receivables 200 Inventories 100 Current Assets 330 Net Fixed Assets 200 Total Assets 530 Accounts Payable 50 Notes Payable 10 Accruals 30 Current Liabilities 90 Bonds 110 Common Stock 150 Retained Earnings ____ Total Liab & Eq $ 2...
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HW 1 - 38% 18,333,333 + 35% 5. Using the above corporate...

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