How large a sales increase can the company achieve without

Assignment Help Finance Basics
Reference no: EM13572682

Bannister Legal Services generated $2,000,000 in sales during 2010, and its year-end total assets were $1,500,000. Also, at year-end 2010, current liabilities were $500,000, consisting of $200,000 of notes payable, $200,000 of accounts payable, and $100,000 of accruals. Looking ahead to 2011, the company estimates that its assets must increase at the same rate as sales, its spontaneous liabilities will increase at the same rate as sales, its profit margin will be 5%, and its payout ratio will be 60%. How large a sales increase can the company achieve without having to raise funds externally; that is, what is its self-supporting growth rate?

Reference no: EM13572682

Questions Cloud

Gi jane was a soldier in the iraq war her salary was 2600 : g.i. jane was a soldier in the iraq war. her salary was 2600 per month and she was in the war zone for eight months.
Management is considering closing the shoe operation : sophisticates corner sells clothing shoes and accessories at a suburban location near boston. information for the just
In the cocktail lounge at fribbes hotel a straight shot of : in the cocktail lounge at fribbes hotel a straight shot of irish whiskey is 1 12 ounces. the purchase price for 1 liter
At franklis incorporated during the month of january the : at franklis incorporated during the month of january the direct labor rate variance was 2500 unfavorable and the direct
How large a sales increase can the company achieve without : bannister legal services generated 2000000 in sales during 2010 and its year-end total assets were 1500000. also at
Kazaam company a merchandiser recently completed its : kazaam company a merchandiser recently completed its calendar-year 2011 operations. for the year 1 all sales are credit
Please remember that although the documentary presents : part 1watch the documentary haze. httpwww.snagfilms.comfilmstitlehazeplease remember that although the documentary
What is the bonds price a 6 year circular file bond pays : a bond yield with a face value of 1000 has a current yield of7 and a coupon rate of 8. what is the bonds price?a 6
Packaging solutions corporation manufactures and sells a : packaging solutions corporation manufactures and sells a wide variety of packaging products. performance reports are

Reviews

Write a Review

Finance Basics Questions & Answers

  Identification of capital and revenue expenditure

Identification of capital and revenue expenditure and A new machine was accidently damaged during installation

  Determine the expected rate of return on the stock

Assuming that Phoenix is not expected to pay any dividends during the coming years, determine the expected rate of return on the stock.

  Because depreciation is not a cash flow why is it

because depreciation is not a cash flow why is it important in capital budgeting evaluation techniques that use

  What is the beta of stock b

Currently, the risk-free rate is 4 percent. Stock A has an expected return of 13 percent and a beta of 1.2. Stock B has an expected return of 9 percent. The stocks have equal reward-to-risk ratios. What is the beta of stock B?

  What is the required rate of return on the security

The Jones Company's common stock has a beta of 1.2. The risk-free rate is 4%. The expected market rate of return is 12%. What is the required rate of return on the security?

  Determining random sample from normal population

Random sample is attained from normal population with the mean of µ = 80 and standard deviation of σ = 8. Which of the following outcomes is more probable? Describe your answer.

  Prepare the stockholders equity section

The following transactions occurred at Horton corporation., during its 1st year of operation: Issued 100,000 shares of common stock at $5 each; 1,000,000, shares are authorized at $1 par value.

  What price must the division charge in order to break even

The division has fixed costs of $10,000 per month, and it expects to sell 42,000 strips per month. If the variable cost per strip is $2.00, what price must the division charge in order to break even?

  You would like to buy a boat and know you can afford boat

you would like to buy a boat and know you can afford boat payments of 225 a month for 5 years. the interest rate is

  Currency swap and spot exchange rate

ABC Corp. entered into a currency swap with its bank, providing that ABC borrows $5 million at 10% and swaps for a 12% yen loan.

  What is the appropriate cost for retained earnings

My Corporation wishes to estimate its cost of retained earnings. The firm's beta is 1.3. The rate on 6-month T-bills is 2%, and the return on the S&P 500 index is 15%. What is the appropriate cost for retained earnings in determining the firm's co..

  Find the beta coefficients

I understand that B is at more risk but not understanding what the formula would be to come up to the rM and beta coefficients of A and B.

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