Calcualte:
Free Cash Flow
Debt Issued (Redeemed)
Dividends Paid
Equity Issued (Sold)
Change to Cash Balance.
The company expects Net Income of $81 Million in the coming year
Expected Return on Sales (ROS) is 12% and the Marginal tax Rate is 28%
After any tax effects, they will pay net interest charges of $11 million during the coming year
The company expects a Marginal Tax Rate of 28% in the coming year
Last year the firm paid $44 million in Dividends as has pledged to increase Dividends by 5% in the coming year
The expected Capital Budget is $285 Million
The company’s target Debt-to-Equity Ratio is 1.2
The firm has a current Cash balance of $60 Million and a target Cash balance of 10% of Sales.