That is what self-supporting growth rate is

Assignment Help Financial Management
Reference no: EM13731346

AFN: company generates 2.0 million in sales during 2013 and its yearend total assets were 1.3 million. Also yearend 2013 current liabilities were 1.0 million consisting of 300.000 notes payable, 500,000 accounts payable and 200,000 accruals looking ahead 2014 company assets will increase at the same rate spontaneous liabilities will increase at the same rate as sales profit margin will be 6% and payout 50%. How large a sales increase can company achieve without having to raise funds externally? That is what self-supporting growth rate is? Sales increase by ? And that is by what percentage?

Reference no: EM13731346

Questions Cloud

What is the stocks current value per share : Thomas Brothers is expected to pay a $3.3 per share dividend at the end of the year (that is, D1 = $3.3). The dividend is expected to grow at a constant rate of 3% a year. The required rate of return on the stock, rs, is 17%. What is the stock's curr..
Residual distribution model : New product expansion with 15 million investments in new machinery. Using current 30% debt to total assets ratio for capital structure to maintain dividend policy of annual distribution 25% of net income. The net income is 8 million. How much externa..
Important characteristics of getting a high sales price : One of the most important characteristics of getting a high sales price is high net revenue to working interest ratio. Why would a company looking to pursue an acquisition place high importance on this factor?
A low quality field may have a positive cash flow : A low quality field may have a positive cash flow, but still be classified as having a less desirable present value. What is a factor that contributes to this analysis?
That is what self-supporting growth rate is : AFN: company generates 2.0 million in sales during 2013 and its yearend total assets were 1.3 million. Also yearend 2013 current liabilities were 1.0 million consisting of 300.000 notes payable, 500,000 accounts payable and 200,000 accruals looking a..
What is the amount of the firms current assets : Killer Whale, Inc., has the following balance sheet statement items: total current liabilities of $889,551; net fixed and other assets of $1,518,050; total assets of $3,015,920; and long term debt of $830,963. What is the amount of the firm’s current..
Gas powered or electric powered forklift truck : Company must choose between a gas powered or electric powered forklift truck. Electric truck will cost more but less expensive to operate its price is $21,000 the gas powered is $17,960. Cost of capital applied to both at 13%. Life expectancy for bot..
Calculate the firms net income : Garden Pro Corporation has sales of $4,611,770; income tax of $483,762; the selling, general and administrative expenses of $243,981; depreciation of $388,811; costs of goods sold of $2,496,450; and interest expense of $166,022. Calculate the firm’s ..
What is the projects payback period : A project has an initial cost of 49,000 expected net cash inflow of 13,000 per year for eight years and a cost of capital of 12%. What is the projects payback period?

Reviews

Write a Review

Financial Management Questions & Answers

  Coupon bonds on the market with nine years left to maturity

The Timberlake-Jackson Wardrobe Co. has 7 percent coupon bonds on the market with nine years left to maturity. The bonds make annual payments. If the bond currently sells for $1,038.50, what is its YTM?

  Value on the ownership position in briarwood hospital

What impact would change have on the equity value of the business and what if the growth rate were only 2 percent?

  Given the rise of china relative to the united states

1 define monetary policym and discuss the opeation of monetary policy in united states post - gfc.or2 given the rise of

  Assume that sales-operating costs and total assets

Last year Hamdi Corp. had sales of $500,000, operating costs of $450,000, and year-end assets of $355,000. The debt-to-total-assets ratio was 17%, the interest rate on the debt was 7.5%, and the firm's tax rate was 35%. The new CFO wants to see how t..

  Process of performing financial analysis of a public

process of performing financial analysis of a public companygeneral component---no more than one paragraph describing

  What is the cross-rate in terms of yen per pound

Suppose the Japanese yen exchange rate is ¥89 5 $1, and the British pound exchange rate is £1 5 $1.62. What is the cross-rate in terms of yen per pound?

  Write a 750- to 1050-word paper in which you describe a

write a 750- to 1050-word paper in which you describe a project you have managed personally or professionally. examples

  Calculate the price per share required in a new public issue

Earnings have been running at about the same level as dividends - Calculate the price per share required in a new public issue

  What was wallaces total long-term debt

At year-end 2013, Wallace Landscaping total assets were $1.8 million and its accounts payable were $370,000. Sales, which in 2013 were $2.1 million, are expected to increase by 20% in 2014. Total assets and accounts payable are proportional to sales,..

  How are financial trades made in an over-the-counter market

How are financial trades made in an over-the-counter market? Discuss the role of a dealer in the OTC market.

  Calculate the companys peso transaction exposure

Suppose an agribusiness in Texas exports its crops. It expects an 18 million peso invoice for an export to Mexico to be paid in 90 days. The current spot and 90-day forward rates are $0.7502/Peso and $0.7422/Peso respectively.

  Explain the accounting information for financial management

Write a 700- to 1,000-word paper identifying the specific cost accounting system an organization utilizes and how it uses the accounting information for financial management. Your paper must include the following

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