Estimate the expected cash balance

Assignment Help Accounting Basics

Reference no: EM13963205

Manpower, which provides nongovernment employment services in the United States, reported net income of $128 million in 1995. It had capital expenditures of $50 million and depreciation of $24 million in 1995, and its working capital was $500 million (on revenues of $5 billion). The firm has a debt ratio of 10 percent and plans to maintain this debt ratio.

a. Estimate how much Manpower will have available to pay out as dividends next year.

b. The current cash balance is $143 million. If Manpower is expected to pay $12 million in dividends next year and repurchase no stock, estimate the expected cash balance at the end of the next year.

Reference no: EM13963205

Questions Cloud

Find the schwarzschild radius of this candidate black hole : After many different types of astronomical measurements, it is now believed that Cygnus X-1 is a black hole. Execute the necessary research to find the location of this black hole relative to earth.

Information on five maritime firms : You are an institutional investor and have the collected the following information on five maritime firms to assess their dividend policies.

What is another name for wages and salary : What is compensation, and what does it include? What's another name for wages and salary? A growing part of compensation plans, short-term (one year or less) or long-term (2 years or more) incentives or bonuses and employee ownership programs (stoc..

What is the new absolute pressure in the tank : If the top of the tank, where the flow meter says 15L/min is 0.25 m above the patient's bed, what is the actual flow rate the patient is experiencing? You may assume the pressure in the supply line to the mask is the same as the tank; and, the pre..

Estimate the expected cash balance : a. Estimate how much Manpower will have available to pay out as dividends next year. b. The current cash balance is $143 million. If Manpower is expected to pay $12 million in dividends next year and repurchase no stock, estimate the..

Given these values what is the phase angle at f=250hz : Given these parameters what is the resonant frequency and how did you get this value?

Describe the population being researched in this study : Review the articles by Peltzer, Preez, Ramlagan, & Fomundam (2008) and Westrom, Maiers, Evans, & Bronfort (2010), and select one to use as the basis for your assignment. In your paper: Describe the population being researched in this study

Essay - general description of your past academic experience : Write an essay that includes general description of your past academic experience

Policy of not paying dividends : Assume that Cracker Barrel, from Problem 20, wants to continue with its policy of not paying dividends. You are the CEO of Cracker Barrel and have been confronted by dissident stockholders, demanding to know why you are not paying out your FCFE

User Account

All Pages