Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. case a prior to the outbreak of covid-19 in german

Case A Prior to the outbreak of Covid-19 in Germany, the Berlin based brewing company...

80.2K

Verified Solution

Question

Finance

Case A

Prior to the outbreak of Covid-19 in Germany, the Berlin based brewing company Federbrau was very successful throughout the European continent. During 2019, the brewer reported net sales of 415 million, 6% up from 2018. Internal auditors also determined its operating profit (EBIT) amounted to 40 million in the same period. As part of their expansion strategy, they devoted substantial investments in net working capital, the companys net book value increased from 215 million to 230 million, while net fixed assets remained stable at 130 million. The company managed to maintain its capital structure with a debt to equity ratio of 0.75 and a 40% Equity Ratio. Based on German corporate income tax of 25% and interest rate of 5.0%, calculate the following:

Net Profit Margin (5 marks)

Working Capital Requirement (WCR) and working capital ratio over sales for 2019 (5 marks)

Post-tax Return On Invested Capital (ROIC) for 2019 (10 marks)

Free Cash Flow (FCF) for 2019 (10 marks).

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Basic Math
1.2K views

McKenna is registering for history class The morning classes are 1st 2nd and 3rd periods...

Programming
1.2K views

Ruby Problem Create a template for an email letterhead with the following variables. The letter head will...

Programming
1.2K views

Write a function child_indices(parent, branch_factor) that returns a list containing the list of indices where the children...

General Management
1.2K views

What are the pros and cons of outsourcing? When is it desirable and necessary?

Biology
1.2K views

are negatively charged par in the orbitis around the nucleus of an alon they are...

Geometry
1.2K views

4 A watch tower is 36 ft tall and casts a shadow of 64 ft...

Accounting
1.2K views

The production department of Zan Corporation has submitted the following forecast of units to be...

Accounting
1.2K views

what is the value of 2000 af ter one year if bank compounding quarterly and...

Accounting
1.2K views

The current asset section of the Moorcroft Outboard Motor Company's balance sheet reported the following...

Accounting
1.2K views

The financial year end for Trusty Traders is 28 February. The rental expenses of Trusty...

Accounting
1.2K views

Problem 7-8B Record the disposal of equipment (LO7-6) [The following information applies to the questions...

Finance
1.2K views

10. What is the anchoring effect? Give an example of its effect on a public...