a. The company's sales for 2005 were $455,150,000 and EBITDA was 15% of sales. Furthermore depreciation amounted to 11% of net fixed assets, interest charges were $8,575,000, the state plus federal corporate tax rate was 40% and Cumberland pays 40% of its net income out in dividends. Given this information construct Cumberland's income statement .Please see attached
b. Next construct the firm's statement of retained earnings for the year ending 12-31-05 and then its 2005 statement of cash flows
c. Calculate net operating working capital, total net operating capital, net operating profit after taxes, and free cash flow for 2005.
d. Calculate the firm's EVA and MVA for 2005. Assume that Cumberland had 10 million shares outstanding that the year end closing stock price was $17.25 per share, and after tax cost capital was (WACC) 12%.
Recently Asked Questions
- Mars at one time had significant amounts of water. What evidence is there to support this conclusion?
- The mean weight of an adult is 71 71 kilograms with a standard deviation of 13 13 kilograms. If 46 46 adults are randomly selected, what is the probability
- Please refer to the attachment to answer this question. This question was created from Lab_3.doc.