Q: Calculate the present value of a loan that could be cleared by payments of $3,250 at the end of…
A: Present value of loan ca be calculated by using loan amortisation formula. Present value of loan(P)=…
Q: D6) Finance You are running a fast food restaurant and you decide to price your menu items in such a…
A: The question is related to Price per unit before taxes. It is calculated with the help of following…
Q: A company is considering investment of k1,000,000 in a project. The following are the forecasts,…
A: 1. Payback Period is the length of time required to recover the cost of Investment. (a) When Cash…
Q: 9. Given the following information: Total assets S Total liabilities S 360,000,000 18,000,000…
A: Net asset value is calculated in the case of mutual funds. It is the value per share after the…
Q: Greater Findlay Development Consortium is preparing to open a new retail strip mall and have…
A: Discount rate is 12% To Find: NPV PI IRR
Q: a) What is the annual dollar amount of interest that you receive from your bond investment? b)…
A: Bond: It represents a debt instrument issued by the company for the purpose of raising debt…
Q: Which company is most likely closest to filing for bankruptcy in the near term? A) Company A which…
A: Bankruptcy is a negative situation for a business. This is the situation under which business is not…
Q: You decide to borrow $250,000 to build a new home. The bank charges an interest rate of 8%…
A: Monthly payments to be paid on the loan amount are calculated using the interest rate, loan amount…
Q: Berman & Jaccor Corporation's current sales and partial balance sheet are shown below. This…
A: Operating assets: The operating assets are those assets which are used in its day to operations…
Q: Given that the current ratio is 2:1 and the assets and liabilities are $20,000 and 510,000…
A: Solution:- Current ratio shows the liquidity of an entity. It is the ratio of current assets to…
Q: What would be the spot price if a stock index futures price were $75, the risk-free rate were 10…
A: Futures price is $75 Risk free rate is 10% Dividend yield is 3%
Q: percent-of-sales method to preparing a pro forma income statement
A: A weakness of the per cent-of-sales method in preparing a pro forma income statement is First, the…
Q: 3. Beverly and Kyle Nelson currently insure their cars with separate companies paying $450 and $375…
A: The future value of the annual savings needs to be computed over ten years at 6% annual interest…
Q: You can obtain a loan of $200000 at a rate of 15 percent for two years. You have a choice of (i)…
A: Loan amount $ 2,00,000.00 Time Period 2 Interest Rate 15%
Q: A stock has an expected return of 16 percent, its beta is 0.45, and the risk-free rate is 6.4…
A: The capital asset pricing model is risk adjusted model for finding out the expected return of a…
Q: Bongani deposited R100 000 in the bank which offers 5,5% per annum simple interest.His intention is…
A: Deposit = 100,000 Interest rate = 5.5% Simple interest N = 4 years
Q: Hook Industries's capital structure consists solely of debt and common equity. It can issue debt at…
A: The capital structure of a company consists of equity and debt. The costs of raising funds from both…
Q: what formula did you use to calculate PVIFA?
A: The acronym PVIFA stands for the present value interest factor. The present value interest factor is…
Q: At 10% per year interest, how much does he have to invest each year (starting in year 1) to reach…
A: A stream of equal cash flows (CF) paid or received periodically is termed as annuity. Annuity due…
Q: Below shows some financial data on General Mills versus Campbell Soup, you collected the following…
A: Ratio analysis helps in the analysis of a firm through the given data of the firm. It can be used to…
Q: You graduate and receive a $3,000 cheque from your grandparents. You decide to save it toward a down…
A: The concept of time value of money will be used here. As per the concept of time value of money the…
Q: A rich aunt has promised you $2,000 one year from today. addition, each year after that, she has…
A: Present Value of growth annuity can be calculated as: = First Payment/ (Discount rate - growth…
Q: 37) You receive a perpetual cash flow of $500 every year from the University at Albany at a rate of…
A: Since you have posted multiple questions, as per answering guidelines we shall be solving first…
Q: in a one-period binomial model, assume that the current stock price is $100 and that it will rise by…
A: Value or price of a call option A call option provides its holder the right to buy stock at the…
Q: How much money should you deposit every year in your savings account starting 3 years from now at 7…
A: We will use the concept of time value of money here. As per the concept of time value of money the…
Q: a) How much is the loan amount going to be? b) What will your monthly payments be? c) How much total…
A: Loan Payments: These are payments comprising interest & principal amounts. Such payments are…
Q: The National Lottery decided to make 2020 a year of CHARITIES. They gave a big donation of R42 345…
A: Given, The donation amount is R 42,345,335
Q: The Campbell Company is considering adding a robotic paint sprayer to its production line. The…
A: Net present value is difference between the present value of cash flow and initial investment of…
Q: what is X?
A: Cash flow statement refers to the statement which provides the exact amount of all cash inflows…
Q: if P20,879 is deposited each year for 8 years at an interest rate of 10.257% compounded bi-monthly,…
A: The concept of the time value of money states that the same amount of money is worth more today than…
Q: 8. Ace Ltd. Manufactures a product and the following particulars are collected for the year ended…
A: 8. i) Formula for Re-order quantity= √2x A x P /S Where, A= Annual consumption (units) during the…
Q: What is meant by Short-term financing?
A: Finance refers to the study of money , currency as well as the capital assets.There are basically…
Q: Assume the Black-Scholes framework for a stock. You are given: i) The current stock price is 40 ii)…
A: An option contract gives the right to its buyer to sell or buy the assets or securities at today’s…
Q: Your company has two divisions: One division sells software and the other division sells computers…
A: The Weighted Average Cost of Capital WACC is calculated with the help of following formula WACC =…
Q: Case: A borrower received a 30-year ARM mortgage loan for $200,000. Rate caps are 3/2/6. The start…
A: An initial rate of interest is defined as the teaser rate or the starting rate, which is an opening…
Q: Answer question 34
A: Intermediate Bonds also known as medium term funds are a type of debt funds that invest in debt…
Q: Describe the advantages of different methods of short-term debt financing.
A: Short Term Debt is also referred to as current liabilities.These are the financial obligations of…
Q: a) Penn Station is saving money to build a new loading platform. Two years ago, they set aside…
A: We will have to use the concept of time value of money. As per the concept of time value of money…
Q: ond Z is an 8% annual coupon bond maturing in 5 years with a face value of maturities is 10%. What…
A: The following information has been provided in the question: Coupon rate =5% Face value =$1000…
Q: actual ash value
A: Actual cash value refers to the amount of property that is present today subtracting the amount of…
Q: Finance 1.In the US Balance of Payments accounts, a sale of euros by the US treasury should be…
A: Balance of payment is the record of all international transactions i..e., payments and receipts,…
Q: If the rate of interest (r) is 9%, then you should be indifferent about receiving $7500 in one year…
A: Here we will use the concept of time value of money. As per the concept of time value of money the…
Q: Calculate a firm's free cash flow if it has net operating profit after taxes of R60,000,…
A: Free cash flow to the firm (FCFF) represents the cash flow from operations available for…
Q: Calculate the future value of the following ordinary simple annuities. Round the answers to the…
A: Solution:- When an equal payment is made each period at end of period, it is called ordinary simple…
Q: What is the present value of an investment with the following cash flows? Year 1 $14,000 Year 2…
A: Solution:- Present value means the value in today’s terms after discounting the future cash flows to…
Q: Exercise 4 (it's only one question) In 2016 the company FinTech.Inc had a capital structure which is…
A: Weighted Average Cost of Capital: It is is the average cost of capital from and are based on…
Q: 8. a. What is the annual interest amount for a $2,000 bond that pays 7.5 percent interests? b.…
A: The Annual Interest is calculated with the help of following formula Annual Interest = Face Value…
Q: purchase price was $1,000. Also, assume that today comparable bonds are paying 7.0 percent. a) What…
A: Bond Price: The price of a bond can be estimated by discounting its future expected coupon payments…
Q: 10. Mary Canfield purchased the All-Canadian Compound bond fund. While this fund doesn't charge a…
A: Contingent deferred sales load (CDSL) refers to a load or sales charge which is charged on the…
Q: Common stock value-Variable growth Personal Finance Problem Home Place Hotels, Inc., is entering…
A:
Broussard Skateboard's sales are expected to increase by 25% from $8.8 million in 2019 to $11.00 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 3%, and the forecasted payout ratio is 45%. Use the AFN equation to
Trending now
This is a popular solution!
Step by step
Solved in 4 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.Broussard Skateboard's sales are expected to increase by 15% from $7.2 million in 2019 to $8.28 million in 2020. Its assets totaled $3 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. 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. $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 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 $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 $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…
- 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.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?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.Johnny’s Hardware Store’s sales were $550,000 during 2019, and its year-end assets were $440,000. For 2020, sales are expected to grow by 5%, and since the firm is operating at full capacity, its assets must grow in proportion to sales. Its current liabilities consisted of $65,000 of accounts payable, $25,000 of notes payable, and $55,000 of accruals. Its after-tax profit margin is forecasted to be 17%, and the firm plans to pay out 25% of its earnings. Based on the AFN equation, what is the firm’s additional funds needed (AFN) for 2020? (HINT: do notes payable spontaneously increase with sales? Show all work.) -$30,131 -$37,631 -$45,631 -$50,131 -$57,631 2.What types of liabilities, assets, and equity are not assumed to vary directly with sales?Carlsbad Corporation's sales are expected to increase from $5 million in 2021 to $6 million in 2022, or by 20%. Its assets totaled $2 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 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. $ What additional funds would be needed if the company's year-end 2021 assets had been $3 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. $…