Solution-How much new long-term debt financing will esther

How much new long-term debt financing will esther need

Assignment Help Finance Basics

Reference no: EM131317212

Esther's Egg Farm is constructing its pro forma financial statements for this year. At year end, assets were $500,000 and accounts Payable were $125,000, Notes payable $100,000. Long-Term Debt is $37,000. Last year's sales were $750,000. Esther's expects to grow by 15% this year. Assets and Accounts Payable are expected to grow proportionally to sales. Common stock currently equals $140,000, and retain earnings are $98,000. Esther's plans to sell $25,000 of new common stock this year. The firm's profit margin on sales is 3%, and 30% of the earnings will be payout as dividends. How much new long-term debt financing will Esther's need this year to finance it's expected growth? Esther's currently opearting at full capacity.

Reference no: EM131317212

Questions Cloud

Statement of cash flows : What information can be identified in the statement of cash flows that cannot be found in the other statements?

Synthesize a circuit using only in gates for each expression : Synthesize a circuit using only IN gates for each expression in problem 3.3.

Interview a professional in your anticipated career : You are required to interview a professional in your anticipated career or major and then write a brief report on the answers they provided youfor an assignment in SOM 301.

Write a review literature : Write a Review Literature.- Organize your resources under headings so that you are able to see points of agreement and disagreement or divergence of findings;

How much new long-term debt financing will esther need : How much new long-term debt financing will Esther's need this year to finance it's expected growth? Esther's currently opearting at full capacity.

What is the cash conversion cycle : W&C normally turns over inventory 25 times per year, account receivable are turned over 8 per year, and the accounts payable turnover is 40. What is the cash conversion cycle?

Develop pamphlet to inform parent about environmental factor : Develop a pamphlet to inform parents and caregivers about environmental factors that can affect the health of infants. Use the "Pamphlet Template" document to help you create your pamphlet. Include the following: Select an environmental factor that p..

Risky asset depends on three components : 1. Define liquidity risk, default risk and taxability risk, and explain how these risks relate to bonds and bond yields. 2. According to CAPM the expected return on a risky asset depends on three components. Name and describe each component explain..

What is your relationship with the organization : What is the organization and how did you select it? What is your relationship with the organization? Using a systems perspective, include any historical information about the organization and the organization's culture that would be helpful in thi..

User Account

All Pages

How much new long-term debt financing will esther need

Reference no: EM131317212

Reference no: EM131317212

Questions Cloud

Reviews

Write a Review

Finance Basics Questions & Answers

Financial reporting and analysis

A report on financial accounting

Describe the types of financial ratios

Differences between sole proprietorship and corporation

Prepare a cash budget statement

What are the implied interest rates

State pricing theory and no-arbitrage pricing theory

Small business administration

Effect of financial leverage

Evaluate the basis for the payment to the lender

Importance of opps, ipps, mpfs and dmepos

Time value of money

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT