Financial Management Problems and case #6 Essay

Financial Management Problems and case 6 - Essay mannequinReporting a large loss and/or increasing dividend payout would have a negative effect on cash and profitability.Problem 9 MVA - Henderson Industries, with a stock price of $60, $500MM of issued common stock, and an MVA of $130MM has shell outs outstanding in the amount of 10,500,000 the result of the sum of the book value ($500MM) and the market value added ($130MM) divided by the sh atomic number 18 price.Problem 10 Cash Flow - base on the information provided regarding Bailey Corporations Income Statement(a) The net operating profit after taxes is $3B NOPAT=EBIT(1-Tax rate)=$4B(1-$1B).(b) The net cash spring is $4.5B NCF=NI+D&A=$1.5B+$3B.(c) The operating cash flow is $6B OCF=EBIT(1-Tax rate)+D&A=$3B+$3B.(d) The free cash flow is $2.7B FCF=OCF-IOC=$6B-$3.3B.Problem 11 Income Statement - Based on the information provided regarding Hermann Industries Income Statement forecasts, the forecasted net income would be achieved b y a sales figure of $ 12,681,481.47Sales$12,681,481.47 Operating Costs (55% of Sales) ($ 6,974,814.81)EBITDA$ 5,706,666.66Depreciation & Amortization ($ 880,000.00) EBIT$ 4,826,666.66 saki ($ 660,000.00)EBT$ 4,166,666.66 Taxes (40%) ($ 1,666,666.66)Net Income$ 2,500,000.00 EMBA 503, Financial ManagementCase SixYOUR FULL NAMEYOUR INSTITUION OR SCHOOLPROFESSORDATELottery Winnings Case try out Six1. If you were integrity of the winners, which option would you select Why I would choose the cash option. I would do this primarily because I could invest the money safely and obtain a return that, although less than the annuity payment, would still give me more money than I need each year and would never... Problem 9 MVA - Henderson Industries, with a stock price of $60, $500MM of issued common stock, and an MVA of $130MM has shares outstanding in the amount of 10,500,000 the result of the sum of the book value ($500MM) and the market value added ($130MM) divided by the share price.Probl em 11 Income Statement - Based on the information provided regarding Hermann Industries Income Statement forecasts, the forecasted net income would be achieved by a sales figure of $ 12,681,481.471. If you were one of the winners, which option would you select Why I would choose the cash option. I would do this primarily because I could invest the money safely and obtain a return that, although less than the annuity payment, would still give me more money than I need each year and would never diminish the principal. Also, if I did non spend all of the money gained from the investment, the compound interest would increase my portfolio significantly. Finally, my tax burden would be less over the long term because capital gains from the investments are taxed at a lower rate in the U.S. than regular income.3. Is the State of Michigan justified in advertising the prize amount as $363 million Explain.