Determine what is the external financing needed

Assignment Help Financial Econometrics
Reference no: EM13327308

The CEO of Easy Home Sales Inc. would like to grow the company to $952,000 in sales for next year. The finance officer has compiled the data below for the current year. Assets and costs will grow propotionate to sales; debt and equity will not. The dividend pay out ratio will be the same as current year. what is the external financing needed?

current year data

sales $800,000

costs 600,000

tax rate 35%

assets 2,000,000

debt 800,000

equity 1,200,000

dividends 26,000

Reference no: EM13327308

Questions Cloud

What mass in grams of kno3 will crystalize out of solution : What mass in grams of KNO3 will crystalize out of solution
Determine the amount of interest expense : Calculate the balances to be reported in the financial statements dated December 31, 2012 - Allowance for Available-for-Sale securities
With what speed would a person need to leave the ground : Excellent human jumpers can leap straight up to a height of 95cm off the ground. To reach this height, with what speed would a person need to leave the ground
How much can harmony company grow to in sales : Harmony Company has current sales of $940,000. It has excess capacity in its assets in the amount of 22%. How much can Harmony Company grow to in sales without adding more assets
Determine what is the external financing needed : The CEO of Easy Home Sales Inc. would like to grow the company to $952,000 in sales for next year. The finance officer has compiled the data below for the current year.
Atoms of americium : A tiny speck (8.3 x 10-7 mol) of americium-241 is used in smoke detectors, how many atoms of americium-241 are there in one of these smoke detectors?
Determine what is the npv of the diet scotch project : The McGregor Whisky Company is proposing to market diet scotch. The product will first be test-marketed for two years in southern California at an initial cost of $610,000.
Minimize the database security risks : Evaluate which method would be efficient for planning proactive concurrency control methods and lock granularities. Assess how your selected method can be used to minimize the database security risks that may occur within a multiuser environment.
Determine what is the company cost of capital : A company is 46% financed by risk free debt. The interest rate is 11%, the expected market risk premium is 9%, and the beta of the company's common stock is 0.56.

Reviews

Write a Review

Financial Econometrics Questions & Answers

  What is the current price of the bond in the united states

Suppose a German company issues a bond with a par value of 1000, 15 years to maturity, and a coupon rate of 7.7 percent paid annually. If the yield to maturity is 8.8 percent, what is the current price of the bond

  How many payments will have made for the account balance

You're prepared to make monthly payments of $380, beginning at the end of this month, into an account that pays 7.9 percent interest compounded monthly.

  What would advice the firm regarding the proposed change

Days sales in inventory will decline from 100 to 45 days and sales will be offset by most of the additional costs of accounts payable associated with increased purchases.

  How long should owner wait to save the entire amount

A restaurant owner wants to buy new kitchen equipment for $25,000. He would like to pay for it through saving up $2,000 a week in a fund that pays 10% interest compounded monthly.

  Calculate future value of invested for 5years at annual rate

A)calculate the future value of $6,000, given that it will be invested for 5 years at an annual interest rate of 6 percent. B) recalculate part (a) using a compounding period that is semiannual (every 6 months).

  What is the npv if the discount rate is 12 percent

Recently, it developed a new process for producing spices. The process requires new machinery that would cost $2,196,790. have a life of five years, and would produce the cash flows shown in the following table.

  What will the new stock price be if project is undertaken

Gross revenue last year were $9.9 million, and total costs were $5.0 million. Blaine Company has 1.6 million shares of common stock outstanding. Gross revenues and costs are expected to grow at 6 percent per year.

  Calculate and without assetwhat is the stock price for with

Consider two firms, With and Without, that have identical assets that generate identical cash flows. Without is an all-equity firm, with 1 million shares outstanding that trade for a price of $24 per share.

  Compute the least squares regression equation

State the number of degrees of freedom available for determining the between-samples variation and Compute the least squares regression equation.

  Predict one major change in the us financial environment

Predict one major change in the U.S. financial environment that may likely occur within the next five years, indicating its impact to the economy and businesses.

  What is trhe total cost of ordering and carrying inventory

Fisk corporation is trying to improve its inventory control system and has installed an online computer at its retail stores. FIsk anticipates sales of 75,000 units per year, an ordering cost of $8 per order,

  Determine year-end balance in retained earnings for k and j

The trial balance for K and J Nursery, Inc., listed the following account balances at December 31, 2013, the end of its fiscal year: cash, $19,000; accounts receivable, $14,000; inventories, $28,000; equipment (net), $83,000;

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd