Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
At year-end 2016, Wallace Landscaping’s total assets were $1.3 million, and its accounts payable were $355,000. Sales, which in 2016 were $2.0 million, are expected to increase by 30% in 2017. Total assets and accounts payable are proportional to sales, and that relationship will be maintained. Wallace typically uses no current liabilities other than accounts payable. Common stock amounted to $475,000 in 2016, and retained earnings were $285,000. Wallace has arranged to sell $130,000 of new common stock in 2017 to meet some of its financing needs. The remainder of its financing needs will be met by issuing new long-term debt at the end of 2017. (Because the debt is added at the end of the year, there will be no additional interest expense due to the new debt.) Its net profit margin on sales is 4%, and 40% of earnings will be paid out as dividends.
a. What was Wallace's total long-term debt in 2016? Do not round intermediate calculations. Round your answer to the nearest dollar.
b. What were Wallace's total liabilities in 2016? Do not round intermediate calculations. Round your answer to the nearest dollar.
c. How much new long-term debt financing will be needed in 2017? (Hint: AFN - New stock = New long-term debt.) Do not round intermediate calculations. Round your answer to the nearest dollar.
Front-End Loads (LO2) Suppose the mutual fund in the previous problem has a current market price quotation of $21.89. Is this a load fund ? if so, calculate the front end load
Time Value of money is unquestionably the most important concept in modern financial management and financial decision-making.
Bond 1 has a coupon rate of 0.0400, a face value of $10,000, for 20 years, pays dividends on a semi-annual basis, and a required yield (YTM) of 0.0350. What is the bonds valuation? What is the bond 1’s current yield?
You have decided to invest 30 percent in X; 30 percent in Y; and 40 percent in Z. The probability of the state of the economy is Boom 25%; Normal 60%; and, Bust 15%. The rate of return for stock X is Boom .20; Normal .15; and, Bust .00. What is the p..
The shares of a company AVV are currently traded at £50. One risk- free asset is also available on the market.
What is the reduction in outstanding cash balances as a result of implementing the lockbox system? Cash balance reduction $
Cal Lury owes $33,000 now. A lender will carry the debt for seven more years at 8 percent interest. What will his annual payment be?
Determine the equivalent taxable yield.
Calculate the payback period for each project and post only your answer. Calculate the NPV for each project and post only your answer.
Shanken Corp. issued a bond with a maturity of 15 years and a semiannual coupon rate of 6 percent 2 years ago. The bond currently sells for 95 percent of its face value. The book value of the debt issue is $60 million. What is the company’s total mar..
Calculate the annual percent change updating on a quarterly basis. Graph the change as well.Calculate real growth rate of money supply.
Guardian Inc. is trying to develop an asset-financing plan. The firm has $350,000 in temporary current assets and $250,000 in permanent current assets. Guardian also has $450,000 in fixed assets. Assume a tax rate of 30 percent. The current interest ..
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd