Reference no: EM131910651

Problem 15-1

Debt	70%	(Given Data)
Equity	30%	(Given Data)
Capital Budget	$3,000,000	(Given Data)
Equity Retained		(Use a formula)
Net Income	$2,000,000	(Given Data)
Additions to Retained Earnings
Earnings Remaining		(Use a formula)
Dividend Payout Ratio (ANSWER)		(Use a formula)

Find the Equity Retained
Evaluate Earnings Remaining
Calculate Dividend Payout Ratio

Problem 15-2

Price of Stock =	90	(Given Data)
Stock Split = 3/2 or	1.5	(Given Data)
Stock Price after Stock Split =		(Use a formula)

Find Stock Price after Stock Split

Problem 15-4

Dividend per share after split =	$0.75	(Given Data)
5/1 Stock Split	5	(Given Data)
9% increase over last years pre-split dividend	1.09	(Given Data)

Calculate Equivalent Pre-Split Dividend.

Evaluate Last year's Dividend.

Problem 16-1

Sales	15,000,000	(Given Data)
Inventory	2,000,000	(Given Data)
Receivables	3,000,000	(Given Data)
Payables	1,000,000	(Given Data)
Cost of Goods Sold = 80% of Sales	12000000	(Given Data)
Finance Rate	8%	(Given Data)
Days in a Year	365

Calculate the following:

1. Inventory Conversion Period
2. Average Collection Period
3. Payables Deferral Period
4. Cash Conversion Cycle

Problem 16-2

Find Days Sales Outstanding

Problem 16-3

Purchases	$8,000,000	(Given Data)
Days in a Year	365	(Given Data)

Calculate the following:

1. Additional Credit if they forego discounts
2. Nominal Cost of Credit
3. Effective Cost of Credit

Problem 16-4a

Inventory Conversion Period	75
Average Collection Period	38
Payables Deferral Period	30

Evaluate Cash Conversion Cycle

Problem 16-4b

Annual Sales	$3,421,875	(Given Data)
Days in a Year	365	(Given Data)

(Hint: You will use data from Problem 16-4a)

Evaluate Investment in Receivables

Attachment:- Week Problem.xlsx