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dimaraw [331]
4 years ago
12

Newtown Propane currently has $490,000 in total assets and sales of $1,820,000. Half of Newtown’s total assets come from net fix

ed assets, and the rest are current assets. The firm expects sales to grow by 19% in the next year. According to the AFN equation, the amount of additional assets required to support this level of sales is $ . (Note: Round your answer to the nearest whole number.) Newtown was using its fixed assets at only 94% of capacity last year. How much sales could the firm have supported last year with its current level of fixed assets? (Note: Round your answer to the nearest whole number.) $1,839,362 $1,548,936 $1,936,170 $2,323,404
Business
1 answer:
Talja [164]4 years ago
5 0

Answer:

c. $1,936,170

Explanation:

Additional assets required to support this sales growth = Growth * Total assets

Additional assets required = 19% * $490,000

Additional assets required = $93,100

Sales at 100% capacity = $1,820,000 / 94%

Sales at 100% capacity = $1,820,000 / 0.94

Sales at 100% capacity = $1,936,170.21

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Why has globalization resulted in increasing environmental damage around the world?
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Those who support this bleak view of globalization argue it creates global competition, resulting in a boost in economic activities that deplete the environment and its natural resources. The increased economic activity leads to greater emissions of industrial pollutants and more environmental degradation.

6 0
3 years ago
A generation ago, ketchup was an essential element of every American pantry and salsa was a relatively unknown product. The popu
s344n2d4d5 [400]

Answer:

  • Social

Explanation:

PESTLE analysis is a tool to identify those external factors which influences organization.

P: Political Factors influencing organization's performance.

E: Economical Factors creating hurdles in the way of the organizations.

S: Social Factors account for changed behavior of consumers towards organization.

T: Technological Factors playing it's role in influencing organizational performance.

L: Legal Factors accounting for legal barriers for the organizations.

E: Environmental Factors affecting companies but no one pays attention to it.

  • Salsa's increased popularity is represented by Social Factor: As belief is the most vital element which has effect on consumers decision making a company's growth or loss can be accounted for it. Not just belief the demographics and the attitude of people towards general issues can play their roles as well.
3 0
4 years ago
The fi corporation's dividends per share are expected to grow indefinitely by 5% per year.
dedylja [7]

Answer:

Explanation:

a.)

Dividend discount model(DDM) is used to determine the price of a stock.

The formula is as follows;

Price ;P0 = D1 /(r-g)

D1 = Dividend in year 1

r = capitalization rate or required rate of return

g = dividend growth rate

P0 = 8/( 0.10-0.05)

P0 = 160.

The price of the Fi corporation's stock is therefore $160.

b.)

Use the formula that shows the relationship between ROE , retention rate and growth rate. It's as follows;

g = ROE *b

g = growth rate

b = retention rate

Given Earnings per Share (EPS) = $12  and dividend = $8, find dividend payout ratio first.

retention ratio = (1 -dividend payout ratio)

dividend payout ratio = 8/12 = 0.667 or 66.7%

retention ratio ; b = (1 -0.667)

b = 0.333 or 33.3%

Plug it in the formula;

0.05 = ROE * 0.333

ROE = 0.05/0.333

ROE = 0.15 or 15%

c.)

This question is asking for the Present Value of Growth Opportunity (PVGO)

The formula is as follows;

PVGO = Price - EPS1 /r

Price = $160 (from part a)

Expected earnings per share (EPS) = $12

required rate of return(capitalization rate) ; r = 10% or 0.10 as a decimal

PVGO = 160 - 12/0.10

PVGO = 160 -120

PVGO = $40

Therefore, the  market is paying $40 per share for growth opportunities.

8 0
3 years ago
A(n) ________ consists of people and procedures dedicated to assessing information needs, developing the needed information, and
dusya [7]

Answer:

correct option is C) marketing information system

Explanation:

we know that marketing information system is the consisting of people and the procedures dedicate to assessing information need

because marketing information system is consisting that procedure and the people dedicate to the assess of information need

and it develop the need of information which help in decision making to use information for generate

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correct option is C) marketing information system

3 0
3 years ago
What is $5.30 reduced by 10%
Yuki888 [10]
To get this answer you can simply move the decimal over one.

Or you can multiple 5.30 *0.10 = 0.53

So you can then subtract 0.53 from 5.30 to get the answer of:

$4.77
7 0
4 years ago
Read 2 more answers
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