答案和详解如下： 5.Harrisburg Tire Company (HTC) forecasts the following for 2007. §
Earnings (net income) = $600M
§
Dividends = $120M
§
Interest expense = $400M
§
Tax rate = 40% §
Depreciation = $500M
§
Capital spending = $800M
§
Total assets = $10B (book value and market value) §
Debt = $4B (book value and market value) §
Equity = $6B (book value and market value) The firm's working capital needs are negligible, and they plan to continue to operate at their current capital structure. The firm's estimated earnings growth rate is: A) 4.8%. B) 6.4%. C) 8.0%. D) 10.0%. The correct answer was C) The firm's estimated earnings growth rate is the product of its retention ratio and ROE: g = RRx(ROE) = [(600 - 120)/600]x(600/6000) = 0.08 6.The forecasted free cash flow to equity is: A) $300M. B) $420M. C) $480M. D) $540M. The correct answer was B) Since working capital needs are negligible, the free cash flow to equity is: FCFE = Net income - [1-DR)] x [FCInv - Dep] - [(1 - DR) x WCInv] =
FCFE = 600M - [1 - (4/10)]x(800M - 500M) = 420M where:
DR = target debt to asset ratio 7.The following information pertains to the Harrisburg Tire Company (HTC) in 2000. §
Earnings (net income) = $600M
§
Dividends = $120M
§
Interest expense = $400M
§
Tax rate = 40% §
Depreciation = $500M
§
Capital spending = $800M
§
Total assets = $10B (book value and market value) §
Debt = $4B (book value and market value) §
Equity = $6B (book value and market value) The firm's working capital needs are negligible, and they plan to continue to operate at their current capital structure. The free cash flow to the firm is: A) $540M. B) $300M. C) $420M. D) $480M. The correct answer was A) The free cash flow to the firm is: FCFF = Net income + (Int. exp.)(1-T) - Capex + Depreciation =
600M + 400M(1 - 0.40) - 800M + 500M = 540M
8.On a per share basis for a firm: §
Sales are $10.00. §
Earnings per share (EPS) is $4.00. §
Depreciation is $3.00. §
After-tax interest is $2.40. §
Investment in working capital is $1.50. §
Investment in fixed capital is $2.00. What is the firm’s expected free cash flow to the firm (FCFF) per share? A) $7.50. B) $5.90. C) $2.90. D) $1.63. The correct answer was B) FCFF = EPS + net non-cash charges + after-tax interest – FCInv – WCInv = $4.00 + 3.00 +$2.40 – $2.00 – 1.50 = $5.90. 9.A firm currently has the following per share values: §
Cash flow from operations (CFO) is $49.50. §
Investment in fixed capital is $40.00. §
Net borrowing is $7.50. What is the current per share free cash flow to equity (FCFE)? A) $97.00. B) $16.50. C) $5.50. D) $17.00. The correct answer was D) FCFE = CFO – FCInv + net borrowing = $49.50 – $40.00 + $7.50 = $17.00 | 
发表于 2008-5-20 12:34
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