I need this excel work in 5 hours or less – Kindly no trial and error
Attached are Balance Sheets and Income Statements for years 0 and 1 for the Alpine Lemonade Co.
Year 0 is the last historical year and Year 1 is a projection year (pro forma).
a.
If the tax rate is 40%, what is Alpine’s Free Cash Flow for year 1?
b.
In addition please answer the following questions
Question 1
How much is the Net Working Capital in Year 0?
112
132
198
Question 2 1 pts
How much is the Net Working Capital in Year 1?
Question 3 1 pts
From Year 0 to Year 1, the Net Working Capital increased. Did that have:
A positive impact on cash
A negative impact on cash
No impact on cash
Question 4 1 pts
The amount of money spent by Alpine during year 1 to purchase additional Property, Plant & Equipment is equal to:
The total value of its Fixed Assets at the end of Year 1: 415.
The total value of its Net Fixed Assets at the end of Year 1: 305.
The increase in its Fixed Assets from year 0 to year 1: 415 – 360 = 55.
The increase in its Net Fixed Assets from year 0 to year 1: 305 – 280 = 25.
Question 5 1 pts
How much is the Depreciation expense in year 1?
25
30
55
Question 6 1 pts
How much is the Free Cash Flow generated by Alpine in Year 1?
Question 7 1 pts
The future Free Cash Flows of a company will help us value:
Its operating assets
Its non-operating assets
Its equity
Its debt
Its total balance sheet
Question 8 1 pts
What is the right question to ask in order to value the equity of a company?
What are the cash flows the company operations are going to generate?
What is the market value of the non-operating assets the company holds?
What are the cash flows the shareholders of the company are going to receive?
Question 9 1 pts
Assume a company plans to have Earnings per share of $10 next year and plans to reinvest 40% of them at an annual rate of 24% in perpetuity.
Assume also the discount rate is 10%.
How much is the value of equity?
150
300
1500
Question 10 1 pts
Which statement do you agree with?
Growth can destroy value when:
The retained earnings are invested at a higher rate than the discount rate.
The retained earnings are invested at a lower rate than the discount rate.
The retention rate is higher than the discount rate.
The retention rate is lower than the discount rate.