Enterprise Value, Operating Expense and Capital Expense
1.In March 2005, General Electric (GE) had a book value of equity of $113 billion, 10.6 billion shares outstanding, and market price of $36 per share. GE also had cash of $13 billion, and total debt of $370 billion.
What was GE's Enterprise value? (Points: 1)
0.97
3.27
3.38
$381.6 billion
738.6
2. Suppose a firm's tax rate is 35%.What effect would a $10 million operating expense have on this year's earnings? What effect would it have on next year's earnings?
3. Suppose a firm's tax rate is 35%.What effect would a $10 million capital expense have on this year's earnings, if the capital is depreciated at a rate of $2 million per year for 5 years? What effect would it have on next year's earnings?
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... 94600 Repurchase of property by BG Enterprises 5900 Net ...Operating Cash Flows US domestic revenue Price per ... Royalty and Concentrate profit net) Price per case ...
... in the WACC) Other income or expense (not material ... Taxes $ 67,485 $ 69,572 Projected operating net income ... 115,872 $ 665,287 Continuing enterprise value in Total ...
