Galehouse gas stations inc expects sales to increase from

Reference no: EM13619840

Galehouse Gas Stations, Inc., expects sales to increase from $1,690,000 to $1,890,000 next year. Mr. Galehouse believes that net assets (Assets - Liabilities) will represent 65 percent of sales. His firm has a 11 percent return on sales and pays 35 percent of profits out as dividends.

(a)What effect will this growth have on funds?
The cash balance will change by $ .

(b)If the dividend payout is only 15 percent, what effect will this growth have on funds?

Reference no: EM13619840

Questions Cloud

What is the value of an investment that pays 20000 every : what is the value of an investment that pays 20000 every other year forever if the first payment occurs one year from

The lifting force does work in raising the helicopter an : a helicopter starting from rest accelerates straight up from the roof of a hospital. the lifting force does work in

Estimate at the beginning and end of combustion the mach : the diameter of the hollow core of a solid propellant grain remains axially uniform during burning. its length is 5 m

A truck is traveling at 111 ms down a hill when the brakes : a truck is traveling at 11.1 ms down a hill when the brakes on all four wheels lock. the hill makes an angle of 14.0deg

Galehouse gas stations inc expects sales to increase from : galehouse gas stations inc. expects sales to increase from 1690000 to 1890000 next year. mr. galehouse believes that

A 380 muf capacitor that is initially uncharged is : a 3.80 muf capacitor that is initially uncharged is connected in series with a 7.60 k ohm resistor and an emf source

What is the resistance in an rl circuit with l 3821 mh if : what is the resistance in an rl circuit with l 38.21 mh if the time taken to reach 83.0 of its maximum current value

The average length of a new born baby is 20 inches with a : the average length of a new born baby is 20 inches with a standard deviation of 1 inch.b. if n100 what is the mean of

A stock has an expected return of 12 percent its beta is : a stock has an expected return of 12 percent its beta is 1.30 and the risk-free rate is 5 percent. what must the

User Account

All Pages