Tim Gillespie Week 1 Ch 7 Pr 12 and Ch 8 Prob 6 and 13

Tim Gillespie Week 1 Ch 7 Pr 12 and Ch 8 Prob 6 and 13 -...

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Unformatted text preview: Tim Gillespie FIN 440 Week 1 Homework Chapter 7-12 A. What is the net operating profit after taxes (NOPAT) for 2009? NOPAT = EBIT(1-T) NOPAT = 150,000,000*(1-.4) NOPAT = $90,000,000.00 B. What are the amounts of net operating working capital for both years? NOWC = (Cash + AR + Inventories) - (AP + Accruals) NOWC for 2009 $192,000,000.00 NOWC for 2008 $210,000,000.00 C. What are the amounts of total net operating capital for both years? Total Net Operating Capital = NOWC + Operating long-term assets 2008 2009 $460,000,000.00 $492,000,000.00 D. What is the free cash flow for 2009? FCF = NOPAT - Net investment in operating capital Net investment in operating capital = 2009 TNOC - 2008 TNOC Net investment in operating capital = $32,000,000.00 FCF 2009 = $58,000,000.00 E. How can you explain the large increase in dividends in 2009? The large increase in the dividends could be the result of more investment by shareholders from out side of the company. If investors were to see that the company was on rise, they would be more willing to invest their money into them. Tim Gillespie...
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This note was uploaded on 02/25/2012 for the course FINANCE 440 taught by Professor Jones during the Spring '12 term at Regis University.

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Tim Gillespie Week 1 Ch 7 Pr 12 and Ch 8 Prob 6 and 13 -...

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