Estimate the external financing needed

Assignment Help Financial Management

Reference no: EM132069940

The most recent financial statements for Cornell, Inc., are shown here: INCOME STATEMENT BALANCE SHEET Sales $ 23,700 Assets $ 55,200 Debt $ 20,400 Costs 14,400 Equity 34,800 Taxable income $ 9,300 Total $ 55,200 Total $ 55,200 Taxes (40%) 3,720 Net income $ 5,580 Assets and costs are proportional to sales.

Debt and equity are not. A dividend of $1,800 was paid, and the company wishes to maintain a constant payout ratio.

Next year's sales are projected to be $29,625. What is the external financing needed?

Reference no: EM132069940

Questions Cloud

Find the value of the growing dividends : If the cost of equity is 3.3%, what is the value of the growing dividends from year 1 to 10 at time year 0?

What is the present value of your windfall : 63 years from now What is the present value of your windfall if the appropriate discount rate is 9 percent?

Are you happy with the risk-adjusted portfolio performance : Are you happy with the risk-adjusted portfolio performance? Explain fully. What is the portfolio's Jensen Measure?

Managing marketing in a changing world : In the first three weeks of this module, you considered a number of issues that are important to marketing as an organisational function

Estimate the external financing needed : Debt and equity are not. A dividend of $1,800 was paid, and the company wishes to maintain a constant payout ratio.

What is azile method of product development : What is azile method of Product development? How to conduct SWOT analysis for a new product. what is Quality Function Deployment.

What items are of interest to you as a student : If you only receive income from an employer, reported on a W-2, what can you do to manage AGI?

Guidelines for assessment task-topic identification : In the first few paragraphs of any research study, the researchers must describe their substantive topic, and make a persuasive case

Effect of the classification of contractual terms : What is the effect of the classification of contractual terms on the remedies available for breach of contract? How are breaches of innominate terms treated?

User Account

All Pages