Shady Sunglasses operates retail sunglass kiosks in shopping malls. Below is information related to the company: (dollar...

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Finance

Shady Sunglasses operates retail sunglass kiosks in shoppingmalls. Below is information related to the company:
(dollar amounts in thousands)
2012
2013
2014
2015
2016
2017
Net Cash Flow from Operations
564
628
854
1059
1345
1655
Interest Expense after tax
122
134
148
145
155
148
Decrease (Increase) in Cash Required for Operations
-75
-54
-48
-32
-61
-48
Net Cash Flow from Investing
-287
-300
-310
-285
-294
-277
Net Cash from Debt Financing
210
204
140
85
-40
-46
Present Value Factors (WACC = 8.5%)
0.922
0.849
0.783
0.722
0.665
Using a five-year forecast horizon compute the sum of thepresent value of free cash flows accruing to all debt and commonequity holders for years 2012 to 2016.
Use Excel cell reference

Answer & Explanation Solved by verified expert

3.7 Ratings (585 Votes)

Year201220132014201520162017Net Cash Flow from Operations564628854105913451655Decrease Increase in Cash Required for Operations755448326148Net Cash See Answer

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Transcribed Image Text

Shady Sunglasses operates retail sunglass kiosks in shoppingmalls. Below is information related to the company:(dollar amounts in thousands)201220132014201520162017Net Cash Flow from Operations564628854105913451655Interest Expense after tax122134148145155148Decrease (Increase) in Cash Required for Operations-75-54-48-32-61-48Net Cash Flow from Investing-287-300-310-285-294-277Net Cash from Debt Financing21020414085-40-46Present Value Factors (WACC = 8.5%)0.9220.8490.7830.7220.665Using a five-year forecast horizon compute the sum of thepresent value of free cash flows accruing to all debt and commonequity holders for years 2012 to 2016.Use Excel cell reference

(dollar amounts in thousands)	2012	2013	2014	2015	2016	2017
Net Cash Flow from Operations	564	628	854	1059	1345	1655
Interest Expense after tax	122	134	148	145	155	148
Decrease (Increase) in Cash Required for Operations	-75	-54	-48	-32	-61	-48
Net Cash Flow from Investing	-287	-300	-310	-285	-294	-277
Net Cash from Debt Financing	210	204	140	85	-40	-46

Present Value Factors (WACC = 8.5%)	0.922	0.849	0.783	0.722	0.665