Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Long-Term Financing Needed
At year-end 2016, Wallace Landscaping’s total assets were $1.8 million and its accounts payable were $370,000. Sales, which in 2016 were $2.2 million, are expected to increase by 25% in 2017. Total assets and accounts payable are proportional to sales, and that relationship will be maintained. Wallace typically uses no current liabilities other than accounts payable. Common stock amounted to $460,000 in 2016, and retained earnings were $300,000. Wallace has arranged to sell $170,000 of new common stock in 2017 to meet some of its financing needs. The remainder of its financing needs will be met by issuing new long-term debt at the end of 2017. (Because the debt is added at the end of the year, there will be no additional interest expense due to the new debt.) Its profit margin on sales is 3%, and 60% of earnings will be paid out as dividends.
1. What was Wallace's total long-term debt in 2016? Do not round intermediate calculations. $
2. What were Wallace's total liabilities in 2016? Do not round intermediate calculations. $
3. How much new long-term debt financing will be needed in 2017? (Hint: AFN - New stock = New long-term debt.) Do not round intermediate calculations. $
Which of the following would be considered a cash inflow in the financing activities section of the statement of cash flows?
A large retailer obtains merchandise under the credit terms of 1/20, net 35, but routinely takes 65 days to pay its bills. (Because the retailer is an important customer, suppliers allow the firm to stretch its credit terms.) What is the retailer's e..
The Jackson-Timberlake Wardrobe Co. just paid a dividend of $1.56 per share on its stock. The dividends are expected to grow at a constant rate of 5 percent per year indefinitely. If investors require a 11 percent return on The Jackson-Timberlake War..
Synovec Co. is growing quickly. Dividends are expected to grow at a rate of 25 percent for the next three years, with the growth rate falling off to a constant 4 percent thereafter. If the required return is 10 percent, and the company just paid a di..
Analyze the balance sheet, income statement and statement of cash flows for the company. Your analysis should be two paragraphs in length
You are trying to find out the equity beta (=levered beta) for an unlisted firm. There are two listed firms with debt to equity ratio [D/E) of 0.8 and 1.2, respectively. The levered betas of the two firms are 1.3 and 1.7, respectively. The corporate ..
What do you know about finance? Why should everyone learn more about finance? How does corporate finance differ from personal finance? How are they similar?
Explain relationship between a firm and its market stages of growth, financial seeking, providers of such external finance at each stage of a market's development, appropriate debt to equity ratio.
You are considering investing in a corporate bond with the following parameters: 15 years to maturity, 12% coupon paid annually, 10% YTM, and a $1,000 par value. What is the yield value of a 32nd of this bond?
Use the information below to determine before tax-costs of debt financing of bond S:
Stewart Industries just paid a $3.00 per share dividend on its common stock yesterday (i.e., D0 = $3.00). The dividend is expected to grow 20 percent a year for the next four years, after which time the dividend is expected to grow at a constant rate..
A $1000 face value corporate bond with a 8% coupon (paid semi-annually) has 6 years to maturity. 1 has a credit rating of AA with a yield to maturity of 4%. The firm is likely to lose its rating and drop to an "A". The appropriate yield corresponding..
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd