Financial Management Problems and case #6 Essay

Financial Management riddles and case 6 - try on ExampleReporting a large loss and/or increasing dividend payout would have a ban 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 shares great in the amount of 10,500,000 the result of the mall of the book value ($500MM) and the market value added ($130MM) divided by the share price.Problem 10 Cash Flow - Based on the information provided regarding Bailey Corporations Income record(a) The bread operating(a) profit after taxes is $3B NOPAT=EBIT(1-Tax come out)=$4B(1-$1B).(b) The net cash flow 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 narration - Based on the information provided regarding Hermann Industries Income Statement forecasts, the forecasted net income would be achieved by a sales common fi g 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 Interest ($ 660,000.00)EBT$ 4,166,666.66 Taxes (40%) ($ 1,666,666.66)Net Income$ 2,500,000.00 EMBA 503, Financial Management courting SixYOUR FULL NAMEYOUR INSTITUION OR SCHOOLPROFESSORDATELottery Winnings subject field Study Six1. 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(prenominal) than the annuity payment, would lock up 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 pri ce.Problem 11 Income Statement - Based on the information provided regarding Hermann Industries Income Statement forecasts, the forecasted net income would be achieved by a sales direct 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 not 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.