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konstantin123 [22]
4 years ago
6

Ink Inc. has a capital structure consisting of 25 percent debt and 75 percent common equity financing. The company has $800 mill

ion in net income and plans to pay out 40 percent of their earnings as dividends. What is the maximum amount of new financing that the company can raise without selling new common stock?
Business
1 answer:
Margarita [4]4 years ago
5 0

Answer:

$640 million

Explanation:

The computation of maximum amount of new financing is shown below:-

New financing from equity = $800 million × (1 - 40%)

= $480 million

New financing from debt = $480 million ÷ 75% × 25%

= $160 million

Now the maximum amount of new financing is

= $480 million + $160 million

= $640 million

Hence, the maximum amount of new financing is $640 million

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Answer: 11.42 times

Explanation:

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Where,

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Inventory Turnover = 4000 / 350 = 11.42 times

3 0
3 years ago
The cash effects of transactions that create revenues and expenses are
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Answer:

The cash effects of transactions that create revenues and expenses are operating activities.

Explanation:

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6 0
3 years ago
suppose that the marginal benefit per dollar spent on bicycles exceeds the marginal benefit per dollar spent on skateboards. the
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More bicycles and fewer skateboards.

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4 0
2 years ago
Assume that the nominal spot exchange rate (USD/EUR) increases by 7.5%, the eurozone price level decreases by 4%, and the US pri
nirvana33 [79]

Answer:

a. 0.7%

Explanation:

The computation in the change in the real exchange rate is shown below:

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According to government sources, the salary growth rate of a financial analyst will be 6% in the period from 2020 to 2030, which is a positive outlook for the position, and a faster growth than other occupations.

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