Forecast the firm additional funds needed

Assignment Help Finance Basics
Reference no: EM131115501

Harvest Home is planning its operations and needs you to forecast the firm's additional funds needed (AFN). The firm is operating at full capacity. Data for use in the forecast are shown below. However, the CEO is concerned about the impact of a change in the payout ratio from the 10% that was used in the past to 40%, which the firm's investment bankers have recommended. Based on the AFN equation, how much would the AFN be the coming year if Harvest Home increased the payout from 10% to the new, higher level? All dollars are in millions.

Last year's sales

$350.0

Last year's accounts payable

$50.0

Sales growth rate

30%

Last year's notes payable

$15.0

Last year's total assets

$650.0

Last year's accruals

$30.0

Last year's profit margin

20.0%

Initial payout ratio

10.0%

Reference no: EM131115501

Questions Cloud

Prepare the entry to record dillons credit sales : Dillons Corporation made credit sales of $30,000 which are subject to 6% sales tax. The corporation also made cash sales which totaled $20,670 including the 6% sales tax.
What is the required rate of return : a. If the firm pays out all of its annual earnings as dividends, what will be the dividend paid per share? b. What is the required rate of return (demanded by shareholders of this firm) implied by the current market price?
Determine the dollar aic and the dollar cash flow that dvr : Determine the dollar AIC and the dollar cash flow that DVR would have to pay under a currency swap where it borrows ¥1,750,000,000 and swaps the debt service into dollars. This problem can be solved using the Excel spreadsheet CURSWAP.xls.
Did that restaurant live up to all three criteria : First, what are three things you look for in a restaurant (important qualities)? Why are these things/qualities important? Then, consider the last restaurant you ate at, and do a quick review of your experience. Did that restaurant live up to all thr..
Forecast the firm additional funds needed : Harvest Home is planning its operations and needs you to forecast the firm's additional funds needed (AFN). The firm is operating at full capacity. Data for use in the forecast are shown below.
Define basic components of strategic information system plan : Determine two (2) significant methods that health care systems should use in order to prevent misuse of information and protect data privacy and thus achieve a high level of security of health information. Provide a rationale to support your respo..
Wages plus lost scooter revenue : EZSkut rents out power scooters at a large shopping complex. They currently employ one repair person who performs emergency repairs for their fleet of 100+ scooters (assume that the repair person works and is paid for a full work shift even if there ..
Sport pro magazine sold annual subscriptions on august : Prepare Sport Pro's August 1, 2010, journal entry and the December 31, 2010, annual adjusting entry.
Determine the price of swap from the corporation viewpoint : A corporation enters into a five-year interest rate swap with a swap bank in which it agrees to pay the swap bank a fixed rate of 9.75 percent annually on a notional amount of €15,000,000 and receive LIBOR. As of the second reset date, determine the ..

Reviews

Write a Review

Finance Basics Questions & Answers

  Additionally to the lender to eliminate the loan

We receive a mortgage loan of $200,000 for 20 years.. The mortgage rate is 12% per annum. First, derive the monthly payment we ought to make to the bank to amortize the loan. Secondly, compute the remaining amount we still owe the bank, if we pay an ..

  Inflows and revenue management

Inflows and Revenue Management

  Find the conversion premium in dollars and in percent

Xilinx, a company in the semiconductor industry, has a $1,000 convertible bond with a conversion ratio of 32.076 and a coupon of 3.125%. The bond is currently priced at $751. Xilinx stock trades at $19.25, and pays an annual dividend of $0.56.

  A medium-sized office building

Sam wants to build a medium-sized office building (15 stories). There are two possible sites available; they are equal in terms of location, buildability, etc. The only significant difference is that Site A must be purchased. Site B is only available..

  Determine the amount of mr. holt''s bonus if the original

Determine the amount of Mr. Holt's bonus if the original computation

  Capital co has a capital structure based on current market

1. chips home brew whiskey management forecasts that if the firm sells each bottle of snake-bite for 20 then the

  Equity cost of capital

Using the information, assume you are holding a market portfolio and have invested $12,000 in Stock C.

  Determine the real risk-free interest rate

The central bank reduce the discount to rise the nation's monetary base. The nation has highly mobile international capital markets and a fixed exchange rate system.

  What is the justification for the irs position

When does the IRS consider a transaction to be non-taxable to the target firm's shareholders? What is the justification for the IRS' position?

  Construct a pro forma balance sheet

Pro forma balance sheet construction - Use the following industry average ratios to construct a pro forma balance sheet, for Carlos Menza, Inc.

  Determine the projected net income

Goran Blomberg is interested in investing in a new rooms only lodging property. He requires some financial projections for the proposed operations. He provides the following information

  How much can you spend on a car if the interest rate is

assume that you have saved up 5000 for a down payment on a car. assuming that you can afford a payment of 325 per

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