How much new long-term debt financing

Assignment Help Financial Management

Reference no: EM131553761

Esther's Egg Farm is constructing its pro forma financial statements for this year. At year end assets worn $500,000 and accounts Payable were $125,000, Notes payable $100,000. Long-Term Debt is $37,000. Last year's sales were $750,000. Esther's expects to grow by 15% this year. Assets and Accounts Payable are expected to grow proportionally to sales. Common stock currently equals $140,000, and retain earnings are $98,000. Esther's plans to sell $25,000 of new common stock this year. The firm's profit margin on sales is 3%, and 30% of the earnings will be payout as dividends. How much new long-term debt financing will Esther's need this year to finance it's expected growth? Esther's currently operating at full capacity (Please enter number if your answer is $20, 125 40 Enter 20125)

Reference no: EM131553761

Questions Cloud

What about such qualitative measures performance of subject : But is there a point at which the increase in class size interferes with learning? What about such qualitative measures as performance of subject being taught?

Design customer-driven marketing tactics : Design customer-driven marketing tactics for the e-market segment, with specific emphasis on price, integrated marketing communication and service.

What is the distance between a node and an adjacent antinode : A string that is 0.15 m long and fixed at both ends is vibrating in its n = 5 harmonic. The sound from this string excites a pipe that is 0.82 m long.

Discuss the interconnectivity of the patient care plan : Discuss the interconnectivity of the patient care plan, documentation, progress notes, HIPAA regulations, the medical record.

How much new long-term debt financing : How much new long-term debt financing will Esther's need this year to finance it's expected growth?

How will the decision affect long-term policy of facility : What are the ethical considerations involved in deciding who receives short- and long-term health care?

Discuss the given statement of coil : Two conducting coils 1 and 2 (identical except that 2 is split) are placed in a uniform magnetic field that decreases at a constant rate as in Figure.

Equal employment opportunity commission : According to the U.S. Equal Employment Opportunity Commission (EEOC,) sexual harassment is considered harassment in a sexual nature.

How are the findings of some scholars challenging : How are the findings of some scholars challenging the notion that people are lower class or poor because they are lazy, don't care and are unwilling to work

User Account

All Pages