User Account

All Pages

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

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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