What is the required total margin

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-A nursing home projects asset growth at 10% per year over the next 10 years. If it wishes to reduce its reliance on debt financing, what rate of equity growth over the 10-year period will be desired?

-Your firm reduces its days in receivables from 87 to 67, which generates $3.4 million of new investment funds. Why does growth rate in equity increase?

-Your firm has $45.0 million invested in accounts receivable, which is 90 days of net revenues. If this value could be reduced to 50 days, what annual increase in income would your firm realize if the increase in cash could be invested at 7.5%?

-Revenues increased by 30% in your firm during the past year while total assets increased only 5% and Equity Financing Ratios remained constant at 50.0%. Return on Equity remained constant at 12.0%. Why didn't Return on Equity increase?

-Your firm's strategic plan calls for a net increase in total assets of $100 million during the next five years, which represents an annual compounded growth rate of 15%. Equity growth is also projected to be 15% per year. Assume that the firm's Total Asset Turnover will average 1.0 in each of the five years and Equity Financing percentages will remain constant at 50%. The firm projects Reported Income Index values to be 0.85 each year. What is the required Total Margin that will make this plan financially feasible?

-Program A has a profit of $5,000 and an investment of $100,000, while program B has a profit of $10,000 and an investment of $220,000. Which program has the better ROI?

Reference no: EM133111855

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