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BUSI 320 Dev Shell: BUSI 320-SummerB01 Connect Homework 6
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  • Due on 26 Jun, 2017 12:00:00
  • Asked On 21 Jun, 2017 12:05:44
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I need solutions and shown work to all 23 questions for Busi 320 Corporate finance homework 6.  

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BUSI 320 Dev Shell: BUSI 320-SummerB01 Connect Homework 6 A+
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  • Submitted On 22 Jun, 2017 07:52:00
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1 out of 1.00 point Assume a corporation has earnings before depreciation and taxes of $111,000, depreciation of $49,000, and that it has a 35 percent tax bracket. a. Compute its cash flow using the following format. (Input all answers as positive values.) Earnings before depreciation and taxes $ 111,000 Depreciation 49,000 Earnings before taxes $ 62,000 Taxes 21,700 Earnings after taxes $ 40,300 Depreciation 49,000 Cash flow $ 89,300 b. How much would cash flow be if there were only $11,000 in depreciation? All other factors are the same. Cash flow $ 76,000 c. How much cash flow is lost due to the reduced depreciation from $49,000 to $11,000? Cash flow lost $ 13,300 Worksheet Learning Objective: 12-02 Cash flow rather than earnings is used in the capital budgeting decision. Assume a corporation has earnings before depreciation and taxes of $111,000, depreciation of $49,000, and that it has a 35 percent tax bracket. a. Compute its cash flow using the following format. (Input all answers as positive values.) Earnings before depreciation and taxes $ 111,000 Depreciation 49,000 Earnings before taxes $ 62,000 ± .1% Taxes 21,700 ± .1% Earnings after taxes $ 40,300 ± .1% Depreciation 49,000 ± .1% Cash flow $ 89,300 ± .1% b. How much would cash flow be if there were only $11,000 in depreciation? All other factors are the same. Cash flow $ 76,000 ± .1% c. How much cash flow is lost due to the reduced depreciation from $49,000 to $11,000? Cash flow lost $ 13,300 ± .1% Explanation: a. Taxes = Tax rate × Earnings before taxes = .35 × $62,000 = $21,700 b. Earnings before depreciation and taxes $ 111,000 Depreciation 11,000 Earnings before taxes $ 100,000 Taxes @ .35 35,000 Earnings after taxes $ 65,000 Depreciation 11,000 Cash flow $ 76,000 c. Cash flow lost = $89,300 − 76,000 = $13,300 award: 2. 1 out of 1.00 point The Short-Line Railroad is considering a $115,000 investment in either of two companies. The cash flows are as follows: Year Electric Co. Water Works 1 $ 95,000 $ 10,000 2 10,000 10,000 3 10,000 95,0...
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finance homework
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  • Submitted On 26 Jun, 2017 12:06:19
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Earnings before depreciation and taxes $10...
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