Reference no: EM13895413
Maggie's Muffins, Inc., generated $2,000,000 in sales during 2015, and its year-end total assets were $1,700,000. Also, at year-end 2015, 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 2016, 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 7%, and its payout ratio will be 50%. 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 %.
|
No-load mutual fund with an annual expense ratio
: You are considering investing in a no-load mutual fund with an annual expense ratio of .8% and an annual 12b-1 fee of .95%. You could also invest in a bank CD paying 6.5% per year. What minimum annual rate of return must the fund earn to make you bet..
|
|
Who surrender them today in exchange for the call price
: Six years ago, Goodwynn & Wolf Incorporated sold a 17-year bond issue with a 12% annual coupon rate and a 7% call premium. Today, G&W called the bonds. The bonds originally were sold at their face value of $1,000. Compute the realized rate of return ..
|
|
What is the equivalent aw of a two-year contract
: What is the equivalent AW of a two-year contract that pays $5,000 at the beginning of the ?rst month and increases by $500 for each month thereafter? i = 12% compounded monthly?
|
|
Bonds on market making annual payments
: Essary Enterprises has bonds on the market making annual payments, with twelve years to maturity, a par value of $1,000, and selling for $972. At this price, the bonds yield 7.1 percent. What must the coupon rate be on the bonds?
|
|
What is its self-supporting growth rate
: Maggie's Muffins, Inc., generated $2,000,000 in sales during 2015, and its year-end total assets were $1,700,000. Also, at year-end 2015, current liabilities were $1,000,000, consisting of $300,000 of notes payable, $500,000 of accounts payable, and ..
|
|
Assets must grow at the same rate as projected sales
: Broussard Skateboard's sales are expected to increase by 20% from $9.0 million in 2015 to $10.80 million in 2016. Its assets totaled $3 million at the end of 2015. Broussard is already at full capacity, so its assets must grow at the same rate as pro..
|
|
Which is better current ration
: which is better current ration? is it possible to run a company with a negative cash flow for: what is the future value of :
|
|
Earnings per share are measurgement that stockholder
: which is more important to today's organizations? Earnings per share (EPS) are a measurgement that stockholders, stackholders and management use to evaluate a company financial health? what do companies do if they have cash flow deficit?
|
|
What is the amount of the annual interest tax shield
: Your firm has a $250,000 bond issue outstanding. These bonds have a 7% coupon, pay interest annually, and have a current market price equal to 103% of face value. What is the amount of the annual interest tax shield given a tax rate of 35%?
|