What is its self-supporting growth rate

Assignment Help Finance Basics
Reference no: EM13271624

Bannister Legal Services generated $2,000,000 in sales during 2010, and its year-end total assets were $1,500,000. Also, at year-end 2010, current liabilities were $500,000, consisting of $200,000 of notes payable, $200,000 of accounts payable, and $100,000 of accruals. Looking ahead to 2011, 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 5%, and its payout ratio will be 60%. How large a sales increase can the company achieve without having to raise funds externally; that is, what is its self-supporting growth rate?

Reference no: EM13271624

Questions Cloud

Explain adding a soluble pyrophosphate salt and heating : In the gravimetric determination of Zn^2+, 2.2024 g sample was dissolved and made up to volume in a 100.0 mL flask. A 10.0 mL aliquot were precipitated by adding a soluble pyrophosphate salt and heating the precipitate to a solid Zn2P2O7 (304.728 ..
Compute the amplitude of the motion : A spring of negligible mass stretches 3.00 cm from its relaxed length when a force of 7.70 N is applied. A 0.490-kg particle rests on a frictionless horizontal surface, What is the amplitude of the motion
Compute the concentration of each of the remaining ions : 1.20.00 ml of 0.100 F Pb(No3)2 (FW 331.2) are mixed with 15.00 ml of 0.125 F Nal (FW 149.9). Lead (II) and iodide form an insoluble salt pbl2 (FW 461.0) Calculate the concentration of each of the remaining ions after mixing. [Pb+2], [i-],[na+],[n0..
Purpose of health promotion in nursing practice : How is health promotion defined, what is the purpose of health promotion in nursing practice?
What is its self-supporting growth rate : How large a sales increase can the company achieve without having to raise funds externally; that is, what is its self-supporting growth rate?
Find the kinetic energy of the system at the equilibrium : A horizontal block-spring system with the block on a frictionless surface has total mechanical energy E = 39.1 J, What is the kinetic energy of the system at the equilibrium point
Explain the percent weight of zn in the original sample : The final, dried product weighed 0.1314 g. What is the percent weight of Zn (65.39 g/mol) in the original sample
Interest rate compounded annually : The ccount offers your 5% interest rate compounded annually?
Interest rate compounded annually : The ccount offers your 5% interest rate compounded annually?

Reviews

Write a Review

Finance Basics Questions & Answers

  Determining what maturity of debt to issue

Should a firm favor any specific maturity range for its issued debt? What considerations might a firm undertake when determining what maturity of debt to issue?

  What is the profit or loss associated with cooper

Gold sells for $325 per ounce and copper sells for $0.87 per pound. Allocate the joint costs using relative weight. With these costs, what is the profit or loss associated with Cooper?

  Leasing promulgations

Write  down a guide for a 2- to 4-page paper comparing capital and operating leases (similarities and differences) and describe how each are classified on financial statements. Discuss how their classification and the changes in how they were repo..

  How much of this amount must kristen pay

The total bill was $20,000. Considering the deductible and coinsurance, how much of this amount must Kristen pay?

  Compute the net income for the year

Assume that retained earnings increased by $400,000 from December 31, 2011, to December 31, 2012, for Jarvie Distribution Corporation. During the year, a cash dividend of $135,000 was paid.

  What is the yield for a 90-day t-bill with a price

What is the price of a 6-month Treasury Bill with a stated yield of 2.50%?

  Formulate and justify an investment policy statement

Mr. Jones is forty-five years old and is in good health. He is married, and has two children aged 17 and 18. He and his wife own all shares in a Limited Liability Corporation that owns a tavern and adjacent restaurant presently valued,

  Computation of effective annual yield bond value

Computation of effective annual yield bond value Assume that the 5-year bond paying $40 semi-annually is purchased at par

  Compute of after-tax profit

Compute of after-tax profit and The corporate tax rate is 40%. If the economy is strong the firm will sell 2,000,000 gadgets

  Calculate amount of the payment

the ACCT300 Commissioner authorized a special loan contract with Astros Company, whereby Astros Company would borrow $125,000 at 9% interest. Conditions of the agreement require the repayment of the loan with seven yearly payments,

  Utilization of relevant cost for decision making

Utilization of Relevant cost for Decision Making and Identify at least one relevant costing decision used by the management at UniCo

  Why might prices not be strong form effcient

Why might prices not be strong form effcient? List two reasons and briefly describe.

Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd