Alpha Geek

(8)

$10/per page/Negotiable

About Alpha Geek

Levels Tought:
University

Expertise:
Accounting,Algebra See all
Accounting,Algebra,Architecture and Design,Art & Design,Biology,Business & Finance,Calculus,Chemistry,Communications,Computer Science,Environmental science,Essay writing,Programming,Social Science,Statistics Hide all
Teaching Since: Apr 2017
Last Sign in: 438 Weeks Ago, 2 Days Ago
Questions Answered: 9562
Tutorials Posted: 9559

Education

  • bachelor in business administration
    Polytechnic State University Sanluis
    Jan-2006 - Nov-2010

  • CPA
    Polytechnic State University
    Jan-2012 - Nov-2016

Experience

  • Professor
    Harvard Square Academy (HS2)
    Mar-2012 - Present

Category > Accounting Posted 25 May 2017 My Price 8.00

Union Pacific Railroad reported net income of $770 million after interest expenses

8.   Union Pacific Railroad reported net income of $770 million after interest expenses of

$320  million  in  a  recent  financial  year.  (The  corporate  tax  rate  was  36  percent.) It reported depreciation of $960 million in that year, and capital spending was $1.2 billion. The firm also had $4 billion in debt outstanding on the books, was rated AA (carrying a yield to maturity of 8 percent), and was trading at par (up from $3.8 billion at the end of the previous year). The beta of the stock is 1.05, and there were 200 million shares outstanding (trading at $60 per share), with a book value of $5 billion. Union Pacific paid 40 percent of its earnings as dividends and working capital requirements are negligible. (The Treasury bond rate is 7 percent.)

a.    Estimate the FCFF for the most recent financial year.

b.    Estimate the value of the firm now.

c.    Estimate the value of equity and the value per share now.

Answers

Alpha Geek
(8)
Status NEW Posted 25 May 2017 02:05 PM My Price 8.00

-----------

Attachments

file 1495722411-Answer.docx preview (263 words )
8-----------. -----------  -----------Uni-----------on -----------Pac-----------ifi-----------c R-----------ail-----------roa-----------d r-----------epo-----------rte-----------d n-----------et -----------inc-----------ome----------- of----------- $7-----------70 -----------mil-----------lio-----------n a-----------fte-----------r i-----------nte-----------res-----------t e-----------xpe-----------nse-----------s o-----------f -----------$32-----------0 ----------- mi-----------lli-----------onÂ-----------  i-----------n ----------- aÂ-----------  r-----------ece-----------ntÂ-----------  f-----------ina-----------nci-----------alÂ-----------  y-----------ear-----------. ----------- (T-----------heÂ-----------  c-----------orp-----------ora-----------teÂ-----------  t-----------axÂ-----------  r-----------ate-----------  -----------was-----------  -----------36Â-----------  p-----------erc-----------ent-----------.) -----------It ----------- re-----------por-----------ted----------- de-----------pre-----------cia-----------tio-----------n o-----------f $-----------960----------- mi-----------lli-----------on -----------in -----------tha-----------t y-----------ear-----------, a-----------nd -----------cap-----------ita-----------l s-----------pen-----------din-----------g w-----------as -----------$1.-----------2 b-----------ill-----------ion-----------. T-----------he -----------fir-----------m a-----------lso----------- ha-----------d $-----------4 b-----------ill-----------ion----------- in----------- de-----------bt -----------out-----------sta-----------ndi-----------ng -----------on -----------the----------- bo-----------oks-----------, w-----------as -----------rat-----------ed -----------AA -----------(ca-----------rry-----------ing----------- a -----------yie-----------ld -----------to -----------mat-----------uri-----------ty -----------of -----------8 p-----------erc-----------ent-----------), -----------and----------- wa-----------s t-----------rad-----------ing-----------
Not Rated(0)