The most recent financial statements for Mixton, Incorporated, are shown here: Income Statement: Balance Sheet: Sales $ 38,600 Assets $ 140,000 Debt $ 39,500 Costs 26,500 Equity 100,500 Taxable income $ 12,100 Total $ 140,000 Total $ 140,000 Taxes (25%) 3,025 Net income $ 9,075 Assets and costs are proportional to sales; debt and equity are not. A dividend of $3,050 was paid, and the company wishes to maintain a constant payout ratio. Next year's sales are projected to be $44,390. What is the external financing needed?

The most recent financial statements for Mixton, Incorporated, are shown here: Income Statement: Balance Sheet: Sales $ 38,600 Assets $ 140,000 Debt $ 39,500 Costs 26,500 Equity 100,500 Taxable income $ 12,100 Total $ 140,000 Total $ 140,000 Taxes (25%) 3,025 Net income $ 9,075 Assets and costs are proportional to sales; debt and equity are not. A dividend of $3,050 was paid, and the company wishes to maintain a constant payout ratio. Next year's sales are projected to be $44,390. What is the external financing needed?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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2 For the most recent year, Camargo, Inc., had sales of $562,000, cost of goods sold of $248,050, depreciation expense of $63,900, and additions of retained earnings of $76,300. The firm currently has 23,500 shares of common stock outstanding and the previous year's dividends per share were $1.45. Assuming a 22% income tax rate, what was the times interest earned ratio? (DO NOT round intermediate calculations and round your answer 10 2 decimal places, e.g., 32016 Times interest earned: ? times
Hillside Dairy's debt to assets ratio is 40. The company's return on assets is 10 percent. The company's net income was $500,000 on sales of $4.8 million. What are the Hillside Dairy's total liabilities? Select one: A. $1.5 million B. $2.0 million C. $4.0 million D. $5.3 million. Only typing answer Please answer explaining in detail step by step without table and graph thankyou
Terry's Markets has sales of $684,000, costs of $437,000, interest paid of $13,800, total assets of $712,000, and depreciation of $109,400. The tax rate is 21 percent and the equity multiplier is 1.6. Please use the Dupont Identity to compute the return on equity.
Cecilia Company reported net income of $1,250,000. The average total liabilities were $4,302,500 and average total stockholders' equity was $5,205,000. Interest expense was $100,500 and the tax rate was 40%. Cecilia's return on assets ratio is closest to: 13.8% 13.1% 12.1% 14.2%
Last year Urban Forests Corp. had $507,500 of assets, $1,905,700 of sales, $410,200 of net income, and a debt-to-total-assets ratio of 5%. What was the company's ROE? Round your answer to the nearest 2 decimals. 85.08% O 76.79% 11.75% 67.97% 8.51%
The Mikado Company has a long-term debt ratio (i.e., the ratio of long-term debt to long-term debt plus equity) of .49 and a current ratio of 1.38. Current liabilities are $2,450, sales are $10,630, profit margin is 10 percent, and ROE is 15 percent. What is the amount of the firm’s net fixed assets?
Stride Rite has total assets of $425 million. Its total liabilities are $110 million. Its equity is $315 million. Calculate the debt ratio. a. 38.6% b. 13.4% c. 34.9% d. 25.9% e. 14.9%
Baby Camels Inc. had the following data for the year ending 12/31/12: Net income = $1,500; EBIT $3,225; Tax Rate = 45%; Total assets = $4,900; Short-term investments = $600; = Stockholders' equity = $2,000; Total debt = $1,900; and Total operating capital = $4,475. What was its return on invested capital (ROIC)? O 30.61% 33.52% 39.64% 65.82% ○ 72.07%
The most recent financial statements for Alexander Company are shown here: Income Statement Balance Sheet Sales $ 55,000 Current assets $ 86,130 Long-term debt $ 59,400 Costs 35,200 Fixed assets 47,520 Equity 74,250 Taxable income $ 19,800 Total $ 133,650 Total $ 133,650 Taxes (22%) 4,356 Net income $ 15,444 Assets and costs are proportional to sales. The company maintains a constant 36 percent dividend payout ratio and a constant debt-equity ratio. What is the maximum increase in sales that can be sustained assuming no new equity is issued?
The most recent financial statements for GPS, Inc., are shown here: Income Statement Balance Sheet Sales $22,300 Assets $120,000 Debt $43,600 Costs 15,800 Equity 76,400 Taxable income $6,500 Total $120,000 Total $120,000 Taxes (35%) 2,275 Net income $4,225 Assets and costs are proportional to sales. Debt and equity are not. A dividend of $1,660 was paid, and the company wishes to maintain a constant payout ratio. Next year's sales are projected to be $28,900. Required: What is the external financing needed? Multiple Choice a. $27,258 b. $26,025 c. $28,492 d. $32,191 e. $210,928 Give typing answer with explanation and conclusion
WD Corporation reports the following year-end balance sheet data. The company's debt-to-equity ratio equals: Cash $ 42,000 Current liabilities $ 77,000 Accounts receivable 57,000 Long-term liabilities 28,000 Inventory 62,000 Common stock 102,000 Equipment 147,000 Retained earnings 101,000 Total assets $ 308,000 Total liabilities and equity $ 308,000
Here and Gone, Inc., has sales of $17,680,797, total assets of $8,472,354, and total debt of $4,415,615. If the profit margin is 12 percent, what is ROE? Enter the answer with 4 decimal places (e.g. 0.1234).

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