Northern pacific external equity

Reference no: EM1338514

Northern Pacific Heating and Cooling Inc. has a 6-month backlog of orders for its patented solar heating system. To meet this demand, management plans to expand production capacity by 40 percent with a $10 million investment in plant and machinery. The firm wants to maintain a 40 percent debt-to-total-assets ratio in its capital structure; it also wants to maintain its past dividend policy of distributing 45 percent of last year's net income. In 2004, net income was $5 million. How much external equity must Northern Pacific seek at the beginning of 2005 to expand capacity as desired?

Reference no: EM1338514

Questions Cloud

Which statements about the sodium-potassium pump is true : which statements about the sodium-potassium pump is true.

Functional and dysfunctional conflict on a project : What is the difference between functional and dysfunctional conflict on a project?

Business, functional, and operating strategies : This has me very frustrated as to how to frame up the first part of this assignment. HELP! What is expected of this first portion, do I need to reword all the corporate philosophies of each of these four businesses? How would you approach making this..

What does the firm have a profit maximising plan : What does the firm have a profit maximising plan in the long run. If no, explain why. If yes, is the plan unique.

Northern pacific external equity : Northern Pacific Heating and Cooling Inc. has a 6-month backlog of orders for its patented solar heating system. To meet this demand, management plans to expand production capacity by 40 percent with the $10 million investment in plant and machin..

Pathways that have an overall energy requirement referred : Pathways that have an overall energy requirement are referred to as.

Modifications in western culture : Did the changes in Western culture caused by the Renaissance, Reformation, and discovery of the Americas result in a more or less just society?

Benefits to the project lifecycle : Discuss the benefits to the project lifecycle by commencing the planning proccess at the concept and design stages of a construction project.

Hydrolases are one important class of enzyme : Hydrolases are one important class of enzyme that function to catalyze.

User Account

All Pages