Balance Sheets And Income Statements For Years

Attached Are Balance Sheets And Income Statements For Years 0 And 1 Fo

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? 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: = 55. The increase in its Net Fixed Assets from year 0 to year 1: = 25. Question 5 1 pts How much is the Depreciation expense in year 1? 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? 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.