Calculate the additional funds needed for company

Assignment Help Finance Basics

Reference no: EM131959629

Question: Company XYZ is projecting its activities for the upcoming year. The company's financial analyst has provided the following relevant financial information:

- Current sales is $2 million.

- Expected sales growth next year is 20%.

- Total Assets at the end of this year is $800,000.

- Accounts Payables at the end of this year is $50,000.

- Accruals at the end of this year is $75,000.

- Current profit margin is 6%.

- The current year's payout ratio is 70%.

Assuming that there is no excess capacity at the end of the current year and that the corresponding ratios remain constant, calculate the Additional Funds Needed (AFN) for Company XYZ next year.

Reference no: EM131959629

Questions Cloud

What is z-prime stock price : Company Z-prime's earnings and dividends per share are expected to grow by 5% a year. Its growth will stop after year 4. In year 5 and afterward.

Find the profitability index of the project : Company XYZ has spent $250,000 to develop a new product - smart beehive. The company has spent $24,000 for a market research for figuring out the expected.

How much do you need to put into the account : The company you work for will deposit $150 at the end of each month into your retirement fund. Interest is compounded monthly. You plan to retire 25 years.

What is the free cash flow : Company XYZ, an all-equity firm, reported incremental revenues (net income) of $343 million for the most recent year. The firm had depreciation expenses.

Calculate the additional funds needed for company : Company XYZ is projecting its activities for the upcoming year. The company's financial analyst has provided the following relevant financial information.

Three guys feels it will gain from the acquisition : What is the minimum annual synergy that Three Guys feels it will gain from the acquisition?

Equal annual end-of-the-year cash flows : How much money can you withdraw for the next 30 years in equal annual end-of-the-year cash flows

What is the current market capitalization : A company wants to raise $50 million. The subscription price is $23, and the current stock price is $27. The firm currently has 3,500,000 shares outstanding.

What is the bond yield to maturity : Company X bonds have 14 years remaining to maturity, but are callable in 4 years at a call price of $1,050. The bonds have $1,000 face value.

User Account

All Pages