Sales grow before any new fixed assets are needed

Assignment Help Financial Management
Reference no: EM13850067

Alter Bridge Mfg., Inc., is currently operating at only 94 percent of fixed asset capacity. Current sales are $500,000. How fast can sales grow before any new fixed assets are needed?

Reference no: EM13850067

Questions Cloud

Value of the shareholders equity account for this firm : KCCO, Inc., has current assets of $5,200, net fixed assets of $25,200, current liabilities of $4,250, and long-term debt of $9,400. What is the value of the shareholders’ equity account for this firm? How much is net working capital?
What are the similarities in the experiences of african : What are the similarities in the experiences of African Americans in the criminal justice and healthcare systems? Can you find any statistics from academic references that support these experiences?
What is just war therory and what is its primary purpose : What is just war therory and what is its primary purpose. Choose one woare in this nations history and then explain whether it conformed to this theory
What is the value of a share of stock : Joker stock has a sustainable growth rate of 10 percent, ROE of 19 percent, and dividends per share of $1.60. If the P/E ratio is 16.5, what is the value of a share of stock?
Sales grow before any new fixed assets are needed : Alter Bridge Mfg., Inc., is currently operating at only 94 percent of fixed asset capacity. Current sales are $500,000. How fast can sales grow before any new fixed assets are needed?
What is the yield-to-maturity of this bond : Duke Power has a 10 year, 5.5% coupon bond that is currently selling for $1,033.15. Assume that coupon payments are semi-annual. What is the yield-to-maturity of this bond?
Expect the value of your dividend check to be three years : Star Light & Power increases its dividend 4.1 percent per year every year. This utility is valued using a discount rate of 12 percent, and the stock currently sells for $41 per share. If you buy a share of stock today and hold on to it for at least t..
Using straight-line depreciation : Your Company is considering a new project that will require $830,000 of new equipment at the start of the project. The equipment will have a depreciable life of 6 years and will be depreciated to a book value of $164,000 using straight-line depreciat..
What will be the after-tax cash flow of this sale : Suppose you sell a fixed asset for $128,000 when it's book value is $161,000. If your company's marginal tax rate is 28%, what will be the effect on cash flows of this sale (i.e., what will be the after-tax cash flow of this sale)?

Reviews

Write a Review

Financial Management Questions & Answers

  Cause the value of a bond to increase other things held same

Which of the following will cause the value of a bond to increase, other things held the same?

  Statement of cash flows is the last of four financial

The statement of cash flows is the last of the four financial statements we discussed. Explain why this statement is important to investors and how it complements the income statement and balance sheet. You should be able to answer this question in s..

  Calculate the after-tax cost of debt if an interest rate

Calculate the after-tax cost of debt if an interest rate is 14 percent and the tax rate is 22 percent.  Express your answer in percentage.

  Differences between stand-alone risk-diversifiable risk

Suppose an individual investor starts with a portfolio that consists of one randomly selected stock. What will happen to the portfolio’s risk if more and more randomly selected stocks are added? Explain the differences between stand-alone risk, diver..

  What is the effective annual rate on loan with interest rate

In a discount interest loan, you pay the interest payment up front. For example, if a 1-year loan is stated as $24,000 and the interest rate is 21.75%, the borrower "pays" 0.2175 × $24,000 = $5,220 immediately, thereby receiving net funds of $18,780 ..

  Assume the market is in equilibrium with required return

Simpkins Corporation does not pay any dividends because it is expanding rapidly and needs to retain all of its earnings. However, investors expect Simpkins to begin paying dividends, with the first dividend of $1.50 coming 3 years from today. what is..

  What is the current market value of the firms debt

The bonds have an 9.3% coupon rate, payable semi annually, and a par value of $1,000. They mature exactly 10-years from today. The yield to maturity is 12%, so the bonds now sell below par. What is the current market value of the firm's debt?

  Find the total payment

On September 1, 2009, Susan Chao bought a motorcycle for $26,000. She paid $1,200 down and financed the balance with a five-year loan at a stated annual interest rate of 6.8 percent, compounded monthly. She started the monthly payments exactly one mo..

  No constant growth valuation

Harrison Clothiers' stock currently sells for $31 a share. It just paid a dividend of $1.5 a share (that is, D0 = 1.5). The dividend is expected to grow at a constant rate of 4% a year. Hart Enterprises recently paid a dividend, D0, of $2.75. It expe..

  What are temporary differences

What are temporary differences? What gives rise to temporary differences? Some accountants believe that deferred taxes should be recognized only for some temporary differences. The FASB requirement states that deferred taxes should be recognized for ..

  Personal property insured under an unendorsed homeowners

Megan has her home and personal property insured under an unendorsed Homeowners 3 (special form) policy. Indicate whether each of the following losses is covered. If the loss is not covered, explain why it is not covered. A garbage truck accidentally..

  Calculate the price with the constant dividend growth model.

Sisters Corp expects to earn $8 per share next year. The firm’s ROE is 15% and its plowback ratio is 60%. If the firm’s market capitalization rate is 10%. Calculate the price with the constant dividend growth model.

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!

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