Broussard Skateboard's sales are expected to increase by 20% from $8.0 million in 2018 to $9.60 million in 2019. Its assets totaled $4 million at the end of 2018. Broussard is already at full capacity, so its assets must grow at the same rate as projected sales. At the end of 2018, current liabilities were $1.4 million, consisting of $450,000 of accounts payable, $500,000 of notes payable, and $450,000 of accruals. The after-tax profit margin is forecasted to be 7%, and the forecasted payout ratio is 40%. Use the AFN equation to forecast Broussard's additional funds needed for the coming year. Enter your answer in dollars. For example, an answer of $1.2 million should be entered as $1,200,000. Do not round intermediate calculations. Round your answer to the nearest dollar. $ 332000
Q: 3. Boca Raton Stake House is now considering expanding the business. Bob Correll, the owner and CEO,…
A: Net Present Value or NPV is difference between the present value of cash inflows and the present…
Q: Let's assume you finance your house through Wells-Fargo Bank. Below, please find the…
A: 1. Monthly Interest Rate: The annual interest rate is given as 5.0%. The monthly interest rate is…
Q: What is the expected return of a portfolio that has $8,000 invested in S and $2,000 invested in T?…
A: The expected return of the portfolio can be calculated as:E(R_p) = R_f + β_p * (E(R_m) -…
Q: Peter will receive a study excellence award of $41,936 per year at the end of the next 10 years.…
A: The above answer can be explained as under - The future value of annuity = Periodic payment x [(1…
Q: None
A: Finance charges include the amount that has been paid above the loan amount by the investor for…
Q: None
A: Step 1:
Q: The common stock of the C.A.L.L. Corporation has been trading in a narrow range around $95 per share…
A: Selling both a call and a put option on the coequal given asset (underlying asset) with the same…
Q: If the required return on the stock is 8 percent, what is the current share price?
A: Step 1: The calculation of the share price ABCDE1YearDividendTerminal valuePVF @ 8%Present value21 $…
Q: es Little Kimi Clothiers can borrow from its bank at 20 percent to take a cash discount. The terms…
A: a:Cost of not taking cash discount = [(Discount % / 100% - Discount %) * (365 / (Final due date -…
Q: DeVault Services recently hired you as a consultant to help with its capital budgeting process. The…
A: The objective of the question is to calculate the Net Present Value (NPV) of a project for DeVault…
Q: Your company is deciding whether to invest in a new machine. The new machine will increase cash flow…
A: According to the analysis, delaying until the machine's price drops can greatly raise the…
Q: Kara, Incorporated, imposes a payback cutoff of three years for its international investment…
A: The above answer can be explained as under -The payback period is calculated after calculating…
Q: Based on the table below, the full price that Bond G will settle at on 16 June 2016 is closest to:…
A: The objective of the question is to calculate the full price of Bond G on 16 June 2016 based on the…
Q: If the modified duration is 6.8 and YTM dropped by 75 bp, and bond is selling at its face value of…
A: The objective of the question is to calculate the new price of the bond given the modified duration,…
Q: ICE Currency Exchange Sell rate C$1.3557 US$1 C$1.7569 / £1 C$1.5696 / €1 Buy rate Sell rate…
A: The objective of the question is to find out how many fewer Canadian dollars one would receive if…
Q: Celia lives in Europe and received a survey in the mail from a U.S. company wanting to know how her…
A: The objective of the question is to identify the type of bias that Celia's response to the survey…
Q: Nikul
A: Step 1: The calculation of the crossover rate ABCD1YearCashflow SCashflow LIncremental CF20…
Q: Annual Expenses Defender: Challenger: Alternative A Alternative B Labor $300,000 $250,000 Material…
A: The method by which a business assesses and chooses long-term investment initiatives is called…
Q: Vince plans to open a self - serve grooming center in a storefront. The grooming equipment will cost…
A:
Q: Current Attempt in Progress Michael and Barbara Garfield invested $5,300 in a savings account paying…
A: Solution:-When some amount is invested somewhere, it earns interest on it.The amount initially…
Q: None
A: Step 1:Final answer short: System A: NPV = $562,795.80System B: NPV = $1,279,931.39
Q: (Weighted Averages MC) Use the table to answer the question that follows. ROR Portfolio 1 Portfolio…
A: Step 1: The formula to calculate weighted mean of ROR is…
Q: klp.1
A: Given information: Acquisition cost = $5,000,000 Salvage value = $1,500,000 Tax rate = 24% or 0.24…
Q: A bond, paying semi-annual coupons of $60, is purchased at a discount to yield j2 = 13%. The book…
A: The objective of the question is to find the interest on the book value for the 11th coupon period.
Q: What are the project's incremental free cash flows? (The CFs under the tab "Year 1 - 4" occur every…
A: Step 1:
Q: You find the following corporate bond quotes. To calculate the number of years until maturity,…
A: The yield to maturity is the total return on investment that an investor will earn by holding a bond…
Q: What is the dividend yield for each of these four stocks? What is the expected capital gains…
A: Step 1: Step 2: Step 3: Step 4:
Q: You are deciding between two mutually exclusive investment opportunities. Both require the same…
A: Step 1:
Q: Kara, Incorporated, imposes a payback cutoff of three years for its international investment…
A: Payback period:Payback period often favored for its simplicity, providing a quick assessment of an…
Q: Consider the following cash flows: Co -$29 C₁ +$ 25 C₂ +$ 25 C3 +$ 25 C4 -$48 a. Which two of the…
A: A . IRR is the discount rate where the Net Present value of the project is equal or approximately…
Q: A pension scheme provides retirement benefits to a group of 200 pensioners currently aged 65 exact.…
A: The objective of the question is to calculate the mortality profit or loss for the pension scheme…
Q: Projected Operating Assets Berman & Jaccor Corporation's current sales and partial balance sheet are…
A: The assets that are being used in the company on a daily basis for generating revenue are referred…
Q: Dantzler Corporation is a fast-growing supplier of office products. Analysts project the following…
A: Here,FCF of Year 1 is -$17FCF of Year 2 is $30FCF of Year 3 is $50Growth Rate is 7%WACC is 14%
Q: der the following two mutually exclusive projects: Cash Flow (A) Cash Flow (B) Year -$ -$ 0 354,000…
A: This question is related to capital budgeting. Here two mutually exclusive projects are given. Hence…
Q: magine a world with perfect certainty, no costs of financial distress and where the corporate tax…
A: The objective of the question is to determine the optimal capital structure for Epsilon LTD, given…
Q: Suppose we are thinking about replacing an old computer with a new one. The old one cost us…
A: Step 1:
Q: The Digital Electronic Quotation System (DEQS) Corporation pays no cash dividends currently and is…
A: Assumptions:- Market capitalization rate = 20%- ROE for the next five years = 17%- ROE after year 5…
Q: None
A: This answer choice matches the incremental free cash flows for year 0, year 1-4, and year 5…
Q: Pappy’s Potato has come up with a new product, the Potato Pet (they are freeze-dried to last…
A: Answer information:Step 1:Q1.Payback Period refers to the time needed by a project's cash inflows to…
Q: None
A: Step 1: The sustainable growth rate represents the maximum rate of growth that a company can sustain…
Q: The accompanying data file shows the square footage and associated property taxes for 20 homes in an…
A: Step 1: Step 2: Step 3:
Q: Finance Suppose that there is 30-year coupon bond with par value of $100 and Macaulay duration of…
A: The percentage change in a bond's price represents the relative difference between its initial price…
Q: A firm just paid a dividend of $3.15. The company dividends are predicted to rise by 4.50% per year…
A: Given information: Current Dividend (D0) = $3.15 Constant growth rate (g) = 4.50% or 0.045 Required…
Q: Question 5 A $60,000 machine with a 6-year class life was purchased 2 years ago. The machine will…
A: Difference in depreciation=New Machine Cost/New Machine Life−Old Machine cost/Old Machine…
Q: For each of the following cases, indicate (a) what interest rate columns and (b) what number of…
A: The concept of time value of money will be used here. As per the concept of time value of money the…
Q: 8. Provide the product for the reaction below. Do not copy and paste from someone else's work; must…
A: Step 1: The product of the given reaction is provided below with step by step mechanism. The…
Q: You find the following corporate bond quotes. To calculate the number of years until maturity,…
A: A bond provides the issuing company access to debt capital from investors and other non-traditional…
Q: Differentiate between unacceptable investment alternatives and potentially acceptable ones?
A: An unacceptable investment refers to a financial asset or opportunity that carries significant risks…
Q: None
A: The company's Additional Funds Needed (AFN) is in a negative amount of -$117,614, showing that it…
Q: Bhupatbhai
A: Step 1:
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Broussard Skateboard’s sales are expected to increase by 15% from $8 million in 2019 to $9.2 million in 2020. Its assets totaled $5 million at the end of 2019. Broussard is already at full capacity, so its assets must grow at the same rate as projected sales. At the end of 2019, current liabilities were $1.4 million, consisting of $450,000 of accounts payable, $500,000 of notes payable, and $450,000 of accruals. The after-tax profit margin is forecasted to be 6%, and the forecasted payout ratio is 40%. Use the AFN equation to forecast Broussard’s additional funds needed for the coming year.Mayor company sales are expected to increase by 20% from $5 million in 2018 to $6 million in 2019. Its assets totaled $7 million at the end of 2018. Mayor is already at full capacity, so its assets must grow at the same rate as projected sales. At the end of 2018, current liabilities were $1.2 million, consisting of $500,000 of accounts payable, $300,000 of notes payable, and $400,000 of accruals. The after-tax profit margin is forecasted to be 5%, and the forecasted payout ratio is 60%. a. Use the AFN equation to forecast Mayor’s additional funds needed for the coming year.Paradise At Sea's sales are exptec to increase by 15% from $8 million in 2018 to $9.2 million in 2019. Its assets totaled $5 million at the end of 2018. The firm is already at full capacity, so its assets must grow at the ssame rate as projected sales. At the end of 2018, current liabilities were $1.4 million, consisting of $450,000 of accounts payable, $500,000 of notes payable, and $450,000 of accruals. The after-tax profit margin is forecasted to be 6%, and the forecasted payout ratio is 40%. Find the sustainable growth rate for this firm. Warnings: Make sure to only include spontaneous liabilities and be careful with switching between thousands and millions....I would recommend using all the "0"s when completing the work. Make sure to state your answer as a percenage with 2 decimals.
- Paradise At Sea's sales are exptec to increase by 15% from $8 million in 2018 to $9.2 million in 2019. Its assets totaled $5 million at the end of 2018. The firm is already at full capacity, so its assets must grow at the ssame rate as projected sales. At the end of 2018, current liabilities were $1.4 million, consisting of $450,000 of accounts payable, $500,000 of notes payable, and $450,000 of accruals. The after-tax profit margin is forecasted to be 6%, and the forecasted payout ratio is 40%. Use the AFN equation to forecast the firm's AFN for the coming year. Warnings: Make sure to only include spontaneous liabilities and be careful with switching between thousands and millions....I would recommend using all the "0"s when completing the work. Make sure to include the "0"s in your answer.Beasley Industries' sales are expected to increase from $5 million in 2019 to $6 million in 2020, or by 20%. Its assets totaled $2 million at the end of 2019. Beasley is at full capacity, so its assets must grow in proportion to projected sales. At the end of 2019, current liabilities are $700,000, consisting of $120,000 of accounts payable, $350,000 of notes payable, and $230,000 of accrued liabilities. Its profit margin is forecasted to be 4%, and its dividend payout ratio is 50%. Using the AFN equation, forecast the additional funds Beasley will need for the coming year. Do not round intermediate calculations. Round your answer to the nearest dollar.Carlsbad Corporation’s sales are expected to increase from $5 millionin 2018 to $6 million in 2019, or by 20%. Its assets totaled $3 million at the end of 2018.Carlsbad is at full capacity, so its assets must grow in proportion to projected sales. At theend of 2018, current liabilities are $1 million, consisting of $250,000 of accounts payable,$500,000 of notes payable, and $250,000 of accrued liabilities. Its profit margin is forecastedto be 3%, and the forecasted retention ratio is 30%. Use the AFN equation to forecast theadditional funds Carlsbad will need for the coming year.
- Carlsbad Corporation's sales are expected to increase from $5 million in 2019 to $6 million in 2020, or by 20%. Its assets totaled $4 million at the end of 2019. Carlsbad is at full capacity, so its assets must grow in proportion to projected sales. At the end of 2019, current liabilities are $1 million, consisting of $250,000 of accounts payable, $500,000 of notes payable, and $250,000 of accrued liabilities. Its profit margin is forecasted to be 7%, and the forecasted retention ratio is 35%. Use the AFN equation to forecast the additional funds Carlsbad will need for the coming year. Write out your answer completely. For example, 5 million should be entered as 5,000,000. Round your answer to the nearest dollar. i keeo getting it wrong, i got: can you help me walk though it with excel formulas please :) ASSETS $ 4,000,000.00 SALES IN 2019 $ 5,000,000.00 TOTAL LIBS $ 1,000,000.00 SALES IN 2020 $ 6,000,000.00 AP $ 250,000.00 VALUE OF SALES INCEASE $…Carlsbad Corporation's sales are expected to increase from $5 million in 2019 to $6 million in 2020, or by 20%. Its assets totaled $6 million at the end of 2019. Carlsbad is at full capacity, so its assets must grow in proportion to projected sales. At the end of 2019, current liabilities are $1 million, consisting of $250,000 of accounts payable, $500,000 of notes payable, and $250,000 of accrued liabilities. Its profit margin is forecasted to be 7%, and the forecasted retention ratio is 25%. Use the AFN equation to forecast Carlsbad's additional funds needed for the coming year. Write out your answer completely. For example, 5 million should be entered as 5,000,000. Round your answer to the nearest dollaCarlsbad Corporation's sales are expected to increase from $5 million in 2019 to $6 million in 2020, or by 20%. Its assets totaled $3 million at the end of 2019. Carlsbad is at full capacity, so its assets must grow in proportion to projected sales. At the end of 2019, current liabilities are $1 million, consisting of $250,000 of accounts payable, $500,000 of notes payable, and $250,000 of accrued liabilities. Its profit margin is forecasted to be 6%. a. Assume that the company pays no dividends. Use the AFN equation to forecast the additional funds Carlsbad will need for the coming year. Write out your answer completely. For example, 5 million should be entered as 5,000,000. Round your answer to the nearest dollar. b. Why is this AFN different from the one when the company pays dividends? I. Under this scenario the company would have a lower level of retained earnings, which would decrease the amount of additional funds needed. II. Under this scenario the company would have a higher…
- Carston Corporation's sales are expected to increase from $5 million in 2019 to $6 million in 2020, or by 20%. Its assets totaled $4 million at the end of 2019. Carston is at full capacity, so its assets must grow in proportion to projected sales. At the end of 2019, current liabilities are $1 million, consisting of $250,000 of accounts payable, $500,000 of notes payable, and $250,000 of accrued liabilities. Its profit margin is forecasted to be 5%, and the forecasted retention ratio is 40%. Use the AFN equation to forecast the additional funds Carston will need for the coming year. Write out your answer completely. For example, 5 million should be entered as 5,000,000. Round your answer to the nearest dollar.Kestus Corporation's sales are expected to increase from $5 million in 2019 to $6 million in 2020, or by 20%. Its assets totaled $5 million at the end of 2019. Kestus is at full capacity, so its assets must grow in proportion to projected sales. At the end of 2019, current liabilities are $1 million, consisting of $250,000 of accounts payable, $500,000 of notes payable, and $250,000 of accrued liabilities. Its profit margin is forecasted to be 6%, and the forecasted retention ratio is 25%. Use the AFN equation to forecast Kestus additional funds needed for the coming year. Write out your answer completely. For example, 5 million should be entered as 5,000,000. Round your answer to the nearest dollar. Now assume the company's assets totaled $3 million at the end of 2019. Is the company's "capital intensity" the same or different comparing to initial situation?Carlsbad Corporation's sales are expected to increase from $5 million in 2021 to $6 million in 2022, or by 20%. Its assets totaled $3 million at the end of 2021. Carlsbad is at full capacity, so its assets must grow in proportion to projected sales. At the end of 2021, current liabilities are $1 million, consisting of $250,000 of accounts payable, $500,000 of notes payable, and $250,000 of accrued liabilities. Its profit margin is forecasted to be 6%, and the forecasted retention ratio is 30%. Use the AFN equation to forecast the additional funds Carlsbad will need for the coming year. Write out your answer completely. For example, 5 million should be entered as 5,000,000. Round your answer to the nearest dollar. $ What additional funds would be needed if the company's year-end 2021 assets had been $4 million? Assume that all other numbers are the same. Write out your answer completely. For example, 5 million should be entered as 5,000,000. Round your answer to the nearest dollar. $ Is…