What is the external financing needed

Assignment Help Financial Management
Reference no: EM131176629

The most recent financial statements for Martin, Inc., are shown here: Income Statement Sales $ 24,550 Costs (14,730) Taxable income $ 9,820 Taxes (35%) (3,437) Net income $ 6,383 Balance Sheet Assets $ 93,290 Debt $ 33,000 Equity 60,290 Total $ 93,290 Total $93,290 Assets and costs are proportional to sales. Debt and equity are not. A dividend of $955 was paid, and Martin wishes to maintain a constant payout ratio. Next year’s sales are projected to be $29,951. What is the external financing needed? (Do not round intermediate

Reference no: EM131176629

Questions Cloud

Expected return portfolio : You have decided to invest $70,000 in Stock Fund, and $30,000 in Bond. The returns for each fund are forecasted below: Fill in the portfolio’s forecasted return for a strong economy and a weak economy. Then calculate the expected return for the portf..
Importance in reporting financial information : 1. What are three different ways an entrepreneur can finance a new business venture? 2. What method(s) would you consider for starting up a residential/commercial cleaning business? 3. Explain ratio analysis and its importance in reporting financial ..
Research the elements of business : Using your current work organization (or an organization of interest) and a second organization in the same industry as the subject matter, research the elements of business, compare and contrast the two selected organizations, and prepare an APA ..
What type of instrument is this : On a piece of paper, Joelle writes, "I promise to pay Rio $1000 on demand." Joelle signs the note. What type of instrument is this? Is it negotiable
What is the external financing needed : The most recent financial statements for Martin, Inc., are shown here: Income Statement Sales $ 24,550 Costs (14,730) Taxable income $ 9,820 Taxes (35%) (3,437) Net income $ 6,383 Balance Sheet Assets $ 93,290 Debt $ 33,000 Equity 60,290 Total $ 93,2..
Projected sales for the first four months : Dorian Industries' projected sales for the first four months of 2015 are given below: Jan. $150,000 Feb. $240,000 Mar. $180,000 April $200,000 20% of sales are collected in cash at time of sale, 50% are collected in the month following the sale, and ..
What the justifications for employer drug testing program : What are the justifications for employer drug testing programs? How does this testing affect the civil rights of employees
Provide an analysis showing pros and cons of each decision : Robert and Cora feel like they will live in their home forever. They are considering refinancing their home. Robert and Cora were told by a mortgage broker that they would qualify for a 3.8 % rate on a 15 year or 4 % on a 30 - year mortgage. Provide ..
Discuss several disadvantages of linear programming : Discuss several advantages of linear programming; clearly explain the reasons for your choices. Discuss several disadvantages of linear programming; clearly explain the reasons for your choices

Reviews

Write a Review

Financial Management Questions & Answers

  Presenting your budget and the business owner

Assume you are presenting your budget and the business owner asks you about the projected growth in sales over the 5-year period. How would you defend the growth in sales for your particular company? What information would you use as support?

  What is the payoff from a call option on the cumulative

Weather derivatives are often written in terms of HDD and CDD, heating degree days and cooling degree days, where on a given day, HDD = max(0,65-A) CDD = max(0,A-65) A = average of the day’s low and high temperatures. What is the payoff from a call o..

  Bonds make semiannual payments-current bond price

App Store Co. issued 13-year bonds one year ago at a coupon rate of 8 percent. The bonds make semiannual payments. If the YTM on these bonds is 5.7 percent, what is the current bond price?

  About the certificate of deposit

Kyle has $1,000 in cash received for high school graduation gifts from various relatives. He wants to invest it in a certificate of deposit (CD) so that he will have a down payment on a car when he graduates from college in five years. His bank will ..

  Project is expected to generate revenues

A 5-year project is expected to generate revenues of $85,000, variable costs of $61,000, and fixed costs of $11,000. The annual depreciation is $6,200 and the tax rate is 38.7 percent. What is the annual operating cash flow?

  Long-term government bonds-small company stocks respectively

The total annual returns on large company common stocks averaged 12.3% from 1926 to 2011, small company stocks averaged 17.4%, long-term government bonds averaged 5.8%, while Treasury Bills averaged 3.8%. What was the average risk premium earned by l..

  Yankee inc a us based mnc has recently decided to expand

yankee inc. a u.s. based mnc has recently decided to expand its international trade relationship by exporting to

  Confidence index increases or decrease

Suppose Baa-rated bonds currently yield 7.8%, while Aa-rated bonds yield 5.8%. Now suppose that due to an increase in the expected inflation rate, the yields on both bonds increase by 1.2%. What would happen to the confidence index? (Round your answe..

  How much could the market price rise before the stock

Your broker recommends that you purchase XYZ Inc. at $60. The stock just paid a $2.40 dividend which (like its per share earnings) is expected to grow annually at 8 percent. If you want to earn 12 percent on your funds, how much could the market pric..

  Dcf valuation and ownership concepts

The venture investors and founders of the ACE Products venture, a closely held corporation, are contemplating merging the successful venture into a much larger diversified firm that operates in the same industry. ACE estimates its free cash flows tha..

  Calculate how much insurance coverage policy

When Carolina’s house burned down, she lost household items worth a total of $125,000. Her house was insured for $225,000 and her homeowner’s policy provided coverage for personal belongings up to 70 percent of the insured value of the house. Calcula..

  What is the accounting break-even level of output

You are considering a new product launch. The project will cost $1,800,000, have a four-year life, and have no salvage value; depreciation is straight-line to zero. Accounting break-even-What is the degree of operating leverage at the accounting brea..

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