What effect will this growth have on funds

Assignment Help Finance Basics

Reference no: EM13290907

Galehouse Gas Stations, Inc., expects sales to increase from $1,500,000 to $1,700,000 next year. Mr. Galehouse believes that net assets (Assets - Liabilities) will represent 70 percent of sales. His firm has a 10 percent return on sales and pays 40 percent of profits out as dividends.

(a) What effect will this growth have on funds?

The cash balance is $ .______________

(b) If the dividend payout is only 15 percent, what effect will this growth have on funds?

Reference no: EM13290907

Questions Cloud

What is the final momentum of the ball : A force of 45 N acts on a ball for 0.2 sec If the ball is initially at rest, What is the final momentum of the ball

What is your approximate future value : You invest $5,000 for 12 years and earn 6% per year. What is your approximate future value ? Solve, using the Rule of 72.

Determine mechanical power supplied to the load : When the motor runs at 1710 rpm, the line currentdrawn from the supply is 78 A at 0.85 PF lagging. Given that,stator iron loss is 2kW, windage and friction losses are 1.2kW andresistance between two stator terminals = 0.4W

Find the potential difference across the plates : A parallel-plate capacitor C is charged up to a potential V with a charge of magnitude Q on each plate. What is the potential difference across the plates in terms of V

What effect will this growth have on funds : Mr. Galehouse believes that net assets (Assets - Liabilities) will represent 70 percent of sales. His firm has a 10 percent return on sales and pays 40 percent of profits out as dividends.

Conduct external environment analysis : Conduct external environment analysis including a Marco-environment analysis and Porter's 5 forces analysis and conduct internal environment analysis. You should identify key resources and competencies of the firm (or SBU) that are likely to provide..

Explain the number of chiral centers in morphine : Based on the number of chiral centers in Morphine, determine the maximum number of stereoisomers that are theoretically possible

Calculate n and p using theexact solutions found above at t : a. calculate n and p using theexact solutions found above at T = 200K, 300K, 500K and 700K. b. calculate n and p using theapproximate solutions given in the lecture at T = 200K, 300K, 500K,and 700K. c. Using MATLAB draw n and p-vs- T in both cases a)..

What is jower cost of capital? : The target capital for Jower Manufacturing is 52% COMMON STOCK, 14% PREFERRED STOCK, AND 34% DEBT. iF THE COST of common equity for the firm os 20.6% the cost of preferred stock os 12.2%, and the beforetax cost of debt is 9.8% What is Jower cost of c..

User Account

All Pages