The following information was collected for the firm you are trying to value: Item 2020 ($...
The following information was collected for the firm you are trying to value: Item 2020 ($ M) 2019 ($M) Property, plant, and equipment 15,905 16,126 Intangibles 25,764 27,222 Goodwill 21,629 21,832 Current assets 60,210 55,744 Current liabilities 27,747 25,031 Net earnings before taxes 19,196 20,563 Taxes 4,806 7,548 Depreciation 3,746 3,895 Net debt repaid 1,379 850 Compute the FCFTE for the firm for the year 2020.
Use the information for the FCFTE in 2020. In addition, If the short-term growth rate (for next five years) is estimated to be 6% and the long-term growth rate beyond that is estimated to be 3%, compute the FCF for your firm for the years 2021 – 2026. Enter your answer as a string of numbers. (For example, if you think the answer is $12,345.67 then enter 12345.67
Homework Answers
| 2020 | 2019 | |
| PP&E | 15905 | 16126 |
| Capex = Change in Net PP&E + Depreciation | ||
| Capex = (15905-16126)+3746 | ||
| Capex = 3525 | ||
| Intangible | 25764 | 27222 |
| Goodwill | 21629 | 21832 |
| Intangible & Goodwill | 47393 | 49054 |
| Amortization = 49054 - 47393 | ||
| Amortization = 1661 | ||
| Current Assets | 60210 | 55744 |
| Current Liabilities | 27747 | 25031 |
| Working capital (Current assets - Current liabilities) | 32463 | 30713 |
| Change in working capital = 32463 - 30713 | ||
| Change in working capital = 1750 | ||
| Net earning before taxes | 19196 | 20563 |
| Taxes | 4806 | 7548 |
| Net earning after taxes | 14390 | 13015 |
| Depreciation | 3746 | 3895 |
| Net debt repaid | 1379 | 850 |
| FCFTE = Net income + Depreciation & Amortisation - Change in working capital - Capex + Net borrowing | ||
| FCFTE = 3746 + 14390 + 1661 - 1750 - 3525 + 1379 | ||
| FCFTE = 15901 | ||
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Record the issuance of 520 bonds at face value of $1,000 each
for $506,090.
2
Record the interest payment on December 31, 2018.
3
Record the interest payment on December 31, 2019.
4
Record the interest and face value payment on December 31,
2020.
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Record the retirement of the bonds at a quoted price of 98,
assuming the bonds are retired on January 1, 2020.
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No Journal Entry Required
Accounts Payable
Accounts Receivable
Accumulated...
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receivable as of September 30, 2017?
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of September 30, 2017.
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the company to collect receivables for fiscal year ended September
30, 2017?
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