Total liabilities and Total assets P2250 stockholder's equity P2250 ===== ===== Sales 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 funds to finance growth. Marbell has an 8% return on sales and 70% is paid out as dividends.

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%

Leon Inc. has the following capital structure, which it considers to be optimal: Debt  25% Preferred stock 15 Common equity  60 Leon’s expected net income this year is $34,285.72, its established dividend payout ratio is 30%, its federal-plus-state tax rate is 25%, and investors expect future earnings and dividends to grow at a constant rate of 9%. Leon paid a dividend of $3.60 per share last year, and its stock currently sells for $54.00 per share. Leon can obtain new capital in the following ways: New preferred stock with a dividend of $11.00 can be sold to the public at a price of $95.00 per share. Debt can be sold at an interest rate of 12%. Leon has the following investment opportunities that are average-risk projects: Project Cost at t=0 Rate of Return A $10,000 17.4% B 20,000 16.0 C 10,000 14.2 D 20,000 13.2 E 10,000 12.0 Calculate the Retained earnings breakpoint. Assume that Leon does not want to issue any new common stock.

HCB, Inc.free cash flows for next year (FCF1) are expected to be $5 million. Free cash flows are expected to grow at a rate of 6% forever. It also has the following financial information: Market value of HCB Debt = $70 million Short-term investments = $15 million Book value of equity = $60 million Total Assets = $80 million Shares outstanding = 2.5 million Required return on stock = 11% WACC = 9% Calculate HCB's intrinsic value per share.                                                        $30.51              $33.56              $36.91              $40.61              $44.67 - the correct answer Do not use Excel!

8

Normaltown Corporation An analyst has predicted the free cash flows for Normaltown Corporation for the next four years: YEAR 2004 FCF $13 million 2005 $17 million 2006 $23 million 2007 $28 million After 2007, the free cash flows are expected to grow at an annual rate of 4%. The weighted average cost of capital for Normaltown is 14%. If the market value of the firm's debt is $110 million, find the value of the firm's equity. $158.77 million $89.39 million $216.00 million $119.00 million

Am. 157.

A firm retains earnings of $40,000. What is the total external financing needed if this company, with $120,00 O in assets, has projected a growth rate of 8 percent? Multiple Choice Zero $3,200 $30,400 $9,600 $100,00 0

Intro Nickelon's free cash flow during the current year is $150 million, which is expected to grow at a constant rate of 5% in the future. The weighted average cost of capital is 11%. Part 1 What is the firm's total corporate value (in $ million)? 0+ decimals Submit

Forecast Orwell's additional funds needed (AFN) for next year. Assuming the firm is operating at only 50% of capacity and using the data in the table below,  forecast Orwell's AFN for the coming year? Current Assets may be considered negligible.  Last year's sales = S0 $164,000 Last year's accounts payable $40,000 Sales growth (ΔS) $46,000 Last year's notes payable $10,000 Last year's total assets = A0* $268,000 Last year's accruals $10,000 Last year's profit margin = PM 0.00 Target payout ratio 0.1