By how much would the afn for the coming year change

Assignment Help Finance Basics

Reference no: EM13287252

Howton and Howtown Worldwide is planning its operations for the coming year and the CEO wants you to forcase the firm's additional funds needed (AFN). The firm is iperating at full capacity. Data for use in the forcast are shown below. however the CEO is concerned about the impact of a change in the payout ratio from the 10% that was used in the past to 50% which the firm's investment bankers have recommended. Based on the AFN equation, by how much would the AFN for the coming year change if Howton and Howton increased the payout from 10% to the new and higher level? All dollars are in millions.

last years sales = SO $300 last years accounts payable $50
Sales growth rate=g 40% last years notes payable $15
last years total assessts = AO $500 last years accurals $20
last years profit margin = PM 20% initial payout ratio 10%

Reference no: EM13287252

Questions Cloud

What would your pre-tax net profit be : If you bought this option for $510.25 and Delva's stock price actually dropped to $60, what would your pre-tax net profit be?

Adapt-even invert cultural forms of their former oppressors : The process by which peoples who must redefine themselves in the wake of oppression adapt and even invert the cultural forms of their former oppressors.

Estimate the error in the slope of the function in the range : The Arrhenius equation is used to explain the dependance of the reaction rate coefficient, k, on temperature, T. Linearize the Arrhenius equation for the the temperature dependance of chemical reaction rate coefficients.

How far does the jumper jump : A jumper in the long-jump goes into the jump with a speed of 12 m/s at an angle of 20 deg. above the horizontal

By how much would the afn for the coming year change : By how much would the AFN for the coming year change if Howton and Howton increased the payout from 10% to the new and higher level? All dollars are in millions.

Sketch the schematic noting vin-vout and component values : Using only a 100nF capacitor and resistor(s), design a passive (meaning Av = vo/vi =1 maximum, =0 minimum) low-pass filter with a break frequency of 1000Hz. a. Sketch the schematic noting Vin, Vout and the component values

How long will it take to empty the pool : A pump is used to empty a 6000{\rm L} wading pool. The water exits the 2.5-cm-diameter hose at a speed of 2.0{\rm m}/{\rm s}

State the value of the equilibrium constant for the reaction : The reverse reaction is first order in B and the rate constant is 8.50 X 10^-1 What is the value of the equilibrium constant for the reaction A (equilibrium) B at this temperature

Cost of capital of the firm (wacc) : Cost of capital of the firm (WACC)

User Account

All Pages