What is the optimal order quantity for these boats

Assignment Help Financial Management

Reference no: EM13975305

1) Your firm has sales of $10,000,000, net income of $800,000, total assets of $10,000,000, and equity of $4,000,000. Your firm projects an increase in sales of 15 percent and has a dividend payout ratio of 40 percent? What is the sustainable growth rate, g?

2) Barneycle’s Boat Shop sells 4,000 of its glow-in-the-dark boats each year and has fixed order costs of $220.9 per order. Carrying cost per boat is $200 per year. What is the optimal order quantity for these boats?

3) The personal tax rate on debt is 21% and the personal tax on equity is 10%. The corporate tax rate is 16%. There is a firm, initially with no debt and market value $3 billion. This firm decides to issue $200 million of perpetual risk-free debt paying the risk free interest rate of 3%. The proceeds from the sale of debt are used to buy back shares. What is the gain from such leverage, GL?

Reference no: EM13975305

Questions Cloud

What is the operating cash flows : Calculating Total Cash Flows. Jetson Spacecraft Corp. shows the following information on its 2011 income statement: sales - $235,000; costs = $141,000; other expenses = $7,900; depreciation expense = $17,300; interest expense = $12,900; taxes = $19,5..

Identify the dependent and independent variables : Before the experiment, only 36% of employees wore seat belts. After 1 month of the lottery, the usage rate is up to 57%. a. Identify the dependent and independent variables in this experiment.

Additional paid-in surplus account : The 2010 balance sheet of Maria's Tennis Shop, Inc., showed $680,000 in the common stock account and $4.3 million in the additional paid-in surplus account. The 2011 balance sheet showed $715,000 and $4.7 million in the same two accounts, respectivel..

How to get access to aieis video database : In your opinion, what factors would you suggest most likely contribute to the difficulties of expatriates who are unable to successfully adapt to working in Japan? FAILURE TO ADAPT

What is the optimal order quantity for these boats : Your firm has sales of $10,000,000, net income of $800,000, total assets of $10,000,000, and equity of $4,000,000. Your firm projects an increase in sales of 15 percent and has a dividend payout ratio of 40 percent? What is the sustainable growth rat..

Generate a scatter diagram : Using the data listed in file XR03068, and with weight as the x (independent) variable and time as the y (dependent) variable, generate a scatter diagram, fit a linear equation to the diagram, then determine and interpret the coefficients of correl..

What does cucuyo mean in english : Common Reading Program: The Prince of Los Cucuyos by Richard Blanco. What does cucuyo mean in English? Blanco refers to The Prince of Los Cucuyos as a "cultural coming of age." What does this mean? List some of the identities Richard Blanco uses for..

What was the firms cash flow to creditors : The 2010 balance sheet of Maria's Tennis Shop, Inc., showed long-term debt of $2.3 million, and the 2011 balance sheet showed long-term debt of $2.55 million. The 2011 income statement showed an interest expense of $190,000. What was the firm's cash ..

Create an analogy or metaphor that explains how banks : Create an analogy or metaphor that explains how banks create and destroy money one that would be understood by someone with absolutely no background in economics.

User Account

All Pages