Reference no: EM13768136
Sales Increase
Maggie's Muffins, Inc., generated $2,000,000 in sales during 2013, and its year-end total assets were $1,600,000. Also, at year-end 2013, current liabilities were $1,000,000, consisting of $300,000 of notes payable, $500,000 of accounts payable, and $200,000 of accruals. Looking ahead to 2014, 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 3%, and its payout ratio will be 65%. How large a sales increase can the company achieve without having to raise funds externally; that is, what is its self-supporting growth rate? Do not round intermediate steps. Round your answers to the nearest whole.
Sales can increase by $ , that is by %.
|
Discuss the types of challenges that each sector face
: Briefly discuss the types of challenges that each sector-both public and private-may face. Are there any legal issues, either criminal or civil, that need to be addressed before privatization can occur
|
|
What is the expected capital gains yield
: Hooper Printing Inc. has bonds outstanding with 19 years left to maturity. The bonds have an 7% annual coupon rate and were issued 1 year ago at their par value of $1,000. However, due to changes in interest rates, the bond's market price has fallen ..
|
|
What would the effective interest rate be on this loan
: Wu Corporation has been offered a loan of $1,000,000 at a rate of 8.5%, simple interest, with monthly interest payments and a 365-day year. What would the effective interest rate be on this loan? If Wu's $1,000,000 loan had been 8.5%, add-on, payable..
|
|
Effective annual cost of costly trade credit
: If Rubash Corporation bought on terms of 1/10, net 30, what would be its nominal annual cost of costly trade credit? Assume a 365-day year. If Rubash were unable to stretch its trade credit and hence had to pay by Day 30 if it did not take discounts,..
|
|
Sales increase
: Maggie's Muffins, Inc., generated $2,000,000 in sales during 2013, and its year-end total assets were $1,600,000. Also, at year-end 2013, current liabilities were $1,000,000, consisting of $300,000 of notes payable, $500,000 of accounts payable, and ..
|
|
What is the expected risk premium on the portfolio
: 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. The rate of r..
|
|
Investment to retrofit work area-review operating procedures
: Hiring physically challenged people to clean bowling shoes will save BowlingBackOffice, Inc (BBO) $3,000 per year for the next 5 years but will require a $10,000 investment to retrofit the work area and review operating procedures to ensure that the ..
|
|
Permit the holders to purchase one share of stock
: Maese Industries had warrants outstanding that permit the holders to purchase one share of stock per warrant at a price of $25. We are to assume the firm’s stock now sells for $20 per share. The company wants to sell some 20-year, $1000 par value bon..
|
|
Money market instruments
: The Millers have recently experienced some unexpected expenses and had to make two consecutive withdrawals from their portfolio: $7500 on March 13, 2015 and another $11000 on the last day of March. What is the time-weighted return of their portfolio ..
|