Impressive growth in sales over the past several years

Assignment Help Financial Management
Reference no: EM13934578

The growing Internet retailer "Nile" corporation has shown impressive growth in sales over the past several years, with sales this past year at $220 million.

If the company has a net profit margin of 1.5%, what would its net profit be? $____ million (Round your answer to two decimal places.)

If in the next year the company achieves its revenue growth target of 4%, what would its total revenue be? $___ million (Round your answer to two decimal places.)

If in the next year the company achieves its revenue growth target of 4%, and assuming its profit margin remained unchanged at 1.5%, what would its total profit be for next year? $___ million (Round your answer to three decimal places.)

The new total revenue for next year (answered in two questions back) represents an increase to revenue of $___ million (Round your answer to two decimal places.)

The increase in total revenue (answered in the previous question) would increase profit by $___ million (Round your answer to four decimal places.)

Using the original revenue number of $220 million, if the company spends 67% of its revenue on purchases, what would be its purchasing expense? $____ million (Round your answer to two decimal places.)

Reference no: EM13934578

Questions Cloud

How would this impact the companys cost of capital : If the company decided to take on a large, representing over 40% of their existing capital, project outside of their industry, how would this impact the company’s cost of capital?
Provide an effective education teenagers with diabetic : Only use Australian websites and articles - must mention how to approach and provide an effective education teenagers with diabetic like Laura in the scenario.
Research to develop new computer game : KADS, Inc., has spent $400,000 on research to develop a new computer game. The firm is planning to spend $200,000 on a machine to produce the new game. Shipping and installation costs of the machine will be capitalized and depreciated;
Trace the pathway of each precursor through gluconeogenesis : Trace the pathway of each precursor through gluconeogenesis. Indicate the location of 14C in all intermediates and in the product, glucose.
Impressive growth in sales over the past several years : The growing Internet retailer "Nile" corporation has shown impressive growth in sales over the past several years, with sales this past year at $220 million. If the company has a net profit margin of 1.5%, what would its net profit be? $____ million.
Go to the web site for the baldrige national quality program : Go to the Web site for the Baldrige National Quality Program and then to the section Frequently Asked Questions.
What is the market value of equity or market capitalization : To estimate the cost of equity for Apple, go to finance.yahoo.com and enter the ticker symbol ‘AAPL’. Follow the various links to find answers to the following questions: What is the most recent stock price listed for Apple? What is the market value ..
How man-made insulin analogues facilitate : How man-made insulin analogues facilitate a tight glucose control in adults and children with diabetes mellitus?
How might you improve your listening skills going forward : How were your observations and experiences reflective of or contrary to research on active listening that you have found in professional literature? How might you improve your listening skills going forward

Reviews

Write a Review

 

Financial Management Questions & Answers

  The current value of the lease

Your car dealer is willing to lease you a new car for $379 a month for 84 months. Payments are due on the first day of each month starting with the day you sign the lease contract. If your cost of money is 4.8 percent, what is the current value of th..

  Calculate the annual net cash flows for the project

International Foods Corporation (IFC) currently processes seafood with a unit it purchased several years ago. Calculate the project's net investment. Calculate the annual net cash flows for the project.

  Water municipality must deposit money into a sinking fund

To pay off $50,000,000 worth of new construction bonds when they come due in 18 years, a water municipality must deposit money into a sinking fund. Payments to the fund will be made quarterly, starting three months from now. If the interest rate for ..

  Interest rate risk occurs because

Interest rate risk occurs because of:

  Define the decision variables and constraints

The Electrocomp Corporation manufactures two electrical products: air conditioners and large fans. The assembly process for each is similar in that both require a certain amount of wiring and drilling. Each air condition takes 3 hours of wiring and 2..

  Determine which good each party should specialize

George and Bill are stuck together on a desert island. There are two goods, Coconut (C) and Bananas (B). George has production function 5C+B=40, while Bill has production function C+3B=36. If they could not trade, George would choose to product 6C, w..

  International trade agreements eliminate trade barriers

international trade agreements eliminate trade barriers between countries promote investments infuse competitiveness

  Using the constant growth formula

Using the constant growth formula and the data above, what price would you estimate for Wal-Mart according to that model if the dividend was expected to grow by a constant 3%?

  What is the bonds current yield

A bond with a par value of $1000 and a coupon interest rate of 7% is currently selling for $1234. if the bond matures in 9 years, what is the bonds current yield?

  Flotation costs associated with the sale of preferred stock

A company has preferred stock that can be sold for $28 per share. The preferred stock pays an annual dividend of 5% based on a par value of $100. Flotation costs associated with the sale of preferred stock equal $1.50 per share. The company's margina..

  Portfolio program and project managements maturity level it

portfolio program and project managements maturity level it is consist of five maturity levelslevel1 getting started

  Price and yield and expected interest rate

An 6% semi-annual coupon bond matures in 6 years. The bond has a face value of $1,000 and a current yield of 6.9105%. What is the bond's price? Round your answer to the nearest cent. What is the bond's YTM?

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