Solve for (Additional Funds Needed)The following is the statement of financial position of Marbell Company, for 20X4.Marbell CompanyStatement of Financial PositionAs of December 31, 20X4(in thousands of pesos)Liabilities and Stockholders' EquityAccounts payableNotes payableAccrued expensesAssetsCashP150900P900Accounts receivable30075Current AssetsP1650Current liabilitiesP1275Fixed assets600Common stockRetained earnings750225Total liabilities andTotal assetsP2250stockholder's equityP2250Sales for 20X4 were P3,000,000. Sales for 20X5 have been projected to increase by 20%.Assuming that Marbell Company is operating below capacity, calculate the amount of new fundsto finance growth. Marbell has an 8% return on sales and 70% is paid out as dividends.

Additional Fund Requirement The purpose of calculating the additional fund requirement to know how…

Answered: Total liabilities and Total assets…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Last year, National Co. has an Earnings per share of P8. Even though the firm will grow at rate of 5% annually, it maintains its retention ratio at 70%. Using the Capital Asset Pricing Model, required rate of return for National Co. is determined at 15%. What is the price of the common stock of National Co. 2 years from now? Format: XX.XX
Company has the following cash flow stream. CF1 = 486 CF2 = 687 CF3 = 840 CF4 = 938 Cash flow is expected to be constant after year 4, with a growth rate of 4%. The WACC is 10%. In addition, company has 32 millions debt, with 51 millions shares outstanding. What is the stock price, P0 , today?
Bulldogs Inc. has a capital structure that consists of 20% equity and the rest with debt. The company expects to report P3 million in net income this year, and 40% of the net income will be paid out to shareholders as dividends. How large must the firm’s capital budget be this year without it having to issue any fresh common shares? P1.51 million P9.0 million P0.24 million P12.00 million
Zippy Pasta Corporation (ZPC) has a constant growth rate of 7 percent. The company retains 30 percent of its earnings to fund future growth. ZPC’s expected EPS (EPS1) and ks for various capital structures are given below. Debt/Total Assets (%) Expected EPS (RM) ks (%) 20% $2.50 15.0% 30 3.00 15.5 40 3.25 16.0 50 3.75 17.0 70 4.00 18.0 Required: What is the optimal capital structure for ZPC? Show all of your working and explain your answer. (Hints: Capital structure is at the optimum level when WACC…
Mf2. 12. Alpha company made sales of PKR 100 Mn in 2019 and expecting that company’s top line will increase by 10% in 2020. The management has controlled its overhead and operating expenses very well in the given year which will result in net margin of 15% . The company has 1 million outstanding shares and the management is expecting to pay 40% as cash dividend at the end of year. Based on the given data, calculate following: ● Net sales ● Net profit ● Earnings per share (EPS) ● Dividend per share 13. Refer Q12, P/E ratio is estimated to be 8 times for the year. Based on the provided data calculate the share price of the Alpha stock ?
A firms ROE is 30%, dividends are 3,000,000, net income is 25% of sales and sales is 27,000,000. What is the sustainable rate of growth? a) 16.67% b) 3.33% c) 13.33% d) 7.5%
Heinfeldt Inc. forecasts the free cash flows (FCFs) (in millions) shown below. The weighted average cost of capital (WACC) is 12%, and the FCFs are expected to continue growing at a 4% rate after Year 3. The firm has $168.05 million of market - value debt, but it has no preferred stock or any other outstanding claims. There are 50 million shares outstanding. Year 1 2 3 FCF $80 $ 130 $200 a. What is the estimated stock price today ( Year 0)? b. Set up a simple Excel data table where you show how the estimated intrinsic value varies as the long - run growth rate varies over the following range (2.00%, 2.25%, 2.50%, 2.75%, 3.00%, 3.25%, 3.50%, and 4.75%) assuming everything else stays constant.
The analyst estimates that after three years the National Inc’s free cash flow will grow at a constant rate of 6% per year. The analyst estimates that the company’s WACC is 10%. The total market value of debt and preferred stock is P25,000 and there are 1,000 outstanding shares of common stock. What is the intrinsic value of the company’s common stock? a. P99.50 b. P84.34 c. P75.31 d. P112.22
National Co. has established a target capital structure of 30% debt and 70% common equity. The current market price of the firm’s stock is P25. It’s last dividend was P2 and its expected dividend growth rate is 2%. What will be the marginal cost of retained earnings be? 10.16% 14.8% 8.90% 11.9%
A firm's current market value of equity is $100 million. It has one million shares outstanding. The firm's equity multiplier is one, and it had sales of $50 million last year. Its profit margin was 5%. What is the firm's implied price-earnings ratio? O 40 O5 O 16 O 20 0 8
Manshukh
7. In future periods, YZX Inc. is expected to maintain a dividend payout 40%, a net profit margin of 4.6%, a total asset turnover of 2.2, and an equity multiplier of 1.35. What is YZX's projected sustainable growth rate? 5.46% 8.20% 8.55% 9.00%

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