Name________________
Reading Quiz for Chapters 10 and 11:
Melvin Enterprises has three divisions television streaming, theme parks, and internet broadband. Why should we value each of these divisions independently?
Continuing from the prior question, assume the television division is valued at $25 billion, the theme parks are valued at $18 billion, and the internet broadband business is valued at $40 billion. Additionally, the corporate overhead overseeing all these divisions is a negative $3 billion. What is the enterprise value of Melvin Enterprise?
What comes first in estimating the value of a company, the reformatting of the income statement or the discounting of free cash flows?
Maxwell Corporation estimates its Net Operating Profit after Taxes (NOPAT) for the coming year to be $100. Additionally, it estimates depreciation expense of $15, additional investment in net operating working capital to be $25 and additional investment in plant, property, and equipment to be $30. What is the expected Free Cash Flow (FCF) for Maxwell Corporation for the coming year?
Sally Corporation has the following traditional balance sheet:
Traditional Balance Sheet Sally Corp:
Cash needed for operations 300 Accounts payable 500
Excess cash 600 Accrued expenses 350
Inventory 600 Current portion of Long-term debt 150
Investment in marketable securities 400 Long term debt 1200
Plant property and Equipment 1400 Stockholders Equity 1100
Total assets 3300 3300
What is Sally Corporation’s invested capital?
Sally Corporation has the following traditional income statement:
Traditional Income Statement:
Sales +2700
Cost of goods sold -1800
Depreciation -250
Selling and administrative – 340
Interest received or earned + 50
Interest paid or expense – 180
Pretax income t 180
Taxes at 20% 36
Net income 144
What is Sally Corporation’s NOPAT?
Using the numbers in the prior two questions, what is Sally Corporation’s ROIC?
When reorganizing the balance sheet what should we do with excess cash? How do we determine what level of cash is operating and what level is excess?
Why do we net (or back out) the accounts payable and accrued expenses in arriving at net working capital and then invested capital?
Do the authors suggest using the operating tax rate or statutory tax rate in modeling the reorganized statements?
1
Select your paper details and see how much our professional writing services will cost.
Our custom human-written papers from top essay writers are always free from plagiarism.
Your data and payment info stay secured every time you get our help from an essay writer.
Your money is safe with us. If your plans change, you can get it sent back to your card.
We offer more than just hand-crafted papers customized for you. Here are more of our greatest perks.
Get instant answers to the questions that students ask most often.
See full FAQWe complete each paper from scratch, and in order to make you feel safe regarding its authenticity, we check our content for plagiarism before its delivery. To do that, we use our in-house software, which can find not only copy-pasted fragments, but even paraphrased pieces of text. Unlike popular plagiarism-detection systems, which are used by most universities (e.g. Turnitin.com), we do not report to any public databases—therefore, such checking is safe.
We provide a plagiarism-free guarantee that ensures your paper is always checked for its uniqueness. Please note that it is possible for a writing company to guarantee an absence of plagiarism against open Internet sources and a number of certain databases, but there is no technology (except for turnitin.com itself) that could guarantee no plagiarism against all sources that are indexed by turnitin. If you want to be 100% sure of your paper’s originality, we suggest you check it using the WriteCheck service from turnitin.com and send us the report.
Yes. You can have a free revision during 7 days after you’ve approved the paper. To apply for a free revision, please press the revision request button on your personal order page. You can also apply for another writer to make a revision of your paper, but in such a case, we can ask you for an additional 12 hours, as we might need some time to find another writer to work on your order.
After the 7-day period, free revisions become unavailable, and we will be able to propose only the paid option of a minor or major revision of your paper. These options are mentioned on your personal order page.