External financing needs from debt

Assignment Help Financial Management
Reference no: EM131091194

You have been provided with three years of historical data for a firm that has paid dividends.

 

Year 2

Net Income

$151

Capital Expenditures

$201

Depreciation

$120

Non-Cash Working Capital

$293

The firm started Year 2 with a cash balance of $90 million, and raised 29% of its external financing needs from debt. The non-cash working capital in Year 1 was $280 million. Each year the company pays out 21% of its net income as dividends. Assuming that the firm did not buy back any stock over the period, estimate how much cash the firm would have at the end of Year 2. Assume that cash balances earn no interest and that the firm will continue to raise 29% of its external financing needs from debt.

Reference no: EM131091194

Questions Cloud

Advantages and disadvantages of margin accounts : Discuss the advantages and disadvantages of margin accounts vs. cash accounts. State at least one advantage and disadvantage.
The case for reparations : Ta-Nehisi Coates, National Correspondent for The Atlantic and recent recipient of the MacArthur "Genius" Grant, has continued to receive attention for his article "The Case for Reparations".  I have included this article in readings for the class,..
How many processing elements are used : how many processing elements are used.
What is the value of the stock : Trust Bankers just paid an annual dividend of $2 per share. The expected dividend growth rate is 5 percent, the discount rate is 10 percent, and the dividends will last for 5 more years. What is the value of the stock?
External financing needs from debt : Assume that cash balances earn no interest and that the firm will continue to raise 29% of its external financing needs from debt.
Why mpi allows these two different implementations : Discuss some of the potential reasons why MPI allows these two different implementations. In particular, consider the cases of different message-sizes and/or different architectural characteristics.
Understanding of this virtue and a greater appreciation : Revise, don't merely edit. Your assigned purpose is twofold: to give your readers both a deeper understanding of this virtue and a greater appreciation of it.
Describe a message-transfer protocol for buffered sends : What kind of additional hardware support is needed to make these types of protocols practical?
Compute the value of client operations : If the company's weighted average cost of capital is 13% and its free cash flows are expected to grow at a L-T sustainable growth rate of 5% in all years after year 4, what is the value of Client's operations (rounded to the nearest million)?

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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