User Account

All Pages

Self-supporting growth rate

Assignment Help Finance Basics
Reference no: EM131160955

Maggie's Muffins, Inc., generated $2,000,000 in sales during 2016, and its year-end total assets were $1,500,000. Also, at year-end 2016, current liabilities were $1,000,000, consisting of $300,000 of notes payable, $500,000 of accounts payable, and $200,000 of accruals. Looking ahead to 2017, the company estimates that its assets must increase at the same rate as sales, its spontaneous liabilities will increase at the same rate as sales, its profit margin will be 4%, and its payout ratio will be 60%. How large a sales increase can the company achieve without having to raise funds externally; that is, what is its self-supporting growth rate? Do not round intermediate steps. Round your answers to the nearest whole.

Reference no: EM131160955

Questions Cloud

What were the reasons for the change : One of the best sources for shared goals and values to guide implementation is the firm's own mission or values statement. Find the mission or values statement for the organization you identified: do you see evidence of the mission or values in th..
Broussard capital intensity ratio : The capital intensity ratio is measured as A0*/S0. Broussard's capital intensity ratio is higher than that of the firm with $2 million year-end 2016 assets; therefore, Broussard is less capital intensive - it would require a smaller increase in to..
Write a synopsis of the buffalo creek disaster book : Write a synopsis of "The Buffalo Creek Disaster" book. What is your personal reaction to the outcome of the Buffalo Creek Disaster case? Be specific. Tell us why
What has been the natural rate of unemployment since 1970 : Plot the data for all the years since 1970 on a diagram, with the change in inflation on the vertical axis and the rate of unemployment on the horizontal axis. Is your graph similar to Figure 8-5?
Self-supporting growth rate : How large a sales increase can the company achieve without having to raise funds externally; that is, what is its self-supporting growth rate? Do not round intermediate steps. Round your answers to the nearest whole.
Calculate enterprise value and equity value : Calculate Enterprise Value and Equity Value as of December 31, 2015.
What would cause you to change or adapt your approach : If you were personally responsible for implementing a particular marketing strategy, which implementation approach would you be most comfortable using, given your personality and personal preferences? Why? Would your chosen approach be universally..
Indexing future cash flows : What differences--Other than indexing future cash flows to % changes in the CPI for the 10 year TIPS vs. having cash flows fixed for both coupon rate and maturity value for regular treasuries--could affect the difference in their yields? Explain
Did lennie cause the first officer death : Did Lennie cause the first officer's death? Distinguish between proximate cause and cause in fact. Are there any intervening causes? If so, are they superseding? Explain in detail every argument that could help Lennie and every argument that the p..

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the after-tax cost of debt

Question 1: The 8.5 percent annual coupon bonds of the ABC Co. are selling for $1,179. The bonds mature in 12 years. The bonds have a par value of $1,000. If the tax rate is 30%, what is the after-tax cost of debt?"

  Reinegar corporations has just issued a 25 year par bond

problem 1bond abond bunitmaturity47yearscoupon56annualprice101.79102.85-you know for certain that the 3 year rate in 4

  What does it mean to say that individuals

What does it mean to say that individuals as a group are net suppliers of funds for financial institutions? What do you think the consequences might be in financial markets if individuals consumed more of their incomes and thereby reduced the supply ..

  Forecasting latin american currencies the value of each

forecasting latin american currencies the value of each latin american currency relative to the dollar is dictated by

  Is it just the same as the economic cost of the issue

Is it the total cost of the issue, the cost per share or the cost per $1 of investment in the stock?

  What are financial intermediaries and economic functions

What are financial intermediaries, and what economic functions do they perform?

  What is highest rate you can afford on a 78-month apr loan

You want to borrow $61,000 from your local bank to buy a new sailboat. You can afford to make monthly payments of $1,000, but no more. Assuming monthly compounding, what is the highest rate you can afford on a 78-month APR loan?

  What is the expected value of going to court

Create a decision tree to represent this situation. What is the expected value of going to court? What should Samuel do?

  What is the profitability index

The Black cow is currently considering a project that will produce cash inflows of $10,899 a year for three years followed by $5,401 in year 4. The cost of the project is $31,784. What is the profitability index if the discount rate is 5 percen..

  Money penny bank has an issue of preference shares with a

money penny bank has an issue of preference shares with a fixed dividend of 6 that just sold for 94. what is the banks

  Discuss the truth in lending act and what role it places in

discuss the truth in lending act and what role it places in financial and regulatory reports requirements in regards to

  How the composition of the principal and interest components

Explain how the composition of the principal and interest components of a fixed-rate mortgage change over the life of the mortgage. What are the implications of this change?

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd