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IrinaK [193]
3 years ago
11

Assume that Delalo, Inc. is operating at full capacity. Also assume that assets, costs, and current liabilities vary directly wi

th sales. The dividend payout ratio is constant. What is the external financing needed if sales increase by 10 percent?
Business
2 answers:
Murrr4er [49]3 years ago
6 0

Answer:

Explanation:

External financing needed =

(1.10×$12,470) - (1.10× $1330)- $3200-$4600 - ($2,840+($45×1.10)=$616. 36.

The need for external financing is intermediate.

son4ous [18]3 years ago
6 0

Answer:

External Financing Needed (EFN) = $616.36

Explanation:

This question didn't give full information of the balance sheet.

The following are needed to find find the EFN:

- Sales

-Income

-Taxable Income

-Net Income

-Taxes

Nevertheless, here is the calculation:

External financing needed =

(1.10×$12,470) - (1.10× $1330)- $3200-$4600 - ($2,840+($45×1.10)=$616. 36

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a

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1. A new furnace for your small factory will cost $27,000 to install and will require ongoing maintenance expenditures of $1,500
Marina CMI [18]

Answer:

payback 3.29 years

NPV 87,158.55

Explanation:

PO 27,000

<u>Cash flow saving Y1 </u>

2400 x 3.5 = 8,400

expenditures (1,500)

net savings   6,900

<u>Cash flow saving Y2 </u>

The price will increase 0.5

6,900 + 2,400 x 0.5 = 8,100

<u>Cash flow saving Y3 to Y20</u>

The price will increase 0.5

8,100 + 2,400 x 0.5 = 9,300

We have an annuity of 18 years for 9,300 cash

And then we have a cash flow of 6,900

and another of 8,100

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C = 9,300

r = 8%

time = 18

9,300 \times \frac{1-(1+0.08)^{-18} }{0.08} = PV\\

PV =  87,158.55

Now this values are years into the future, so we need to bring them to present day.

\frac{Principal}{(1 + rate)^{time} } = PV

year 1 principal 6,900

6,900/1.08 = 6,388.89

year 2 principal 8,100

\frac{8,100}{(1 + 0.08)^{2} } = PV

PV= 5,915.64

year 3 annuity 87,158.55

\frac{87,158.55}{(1 + 0.08)^{3} } = PV

PV= 69,189.27

cash flow - investment = net present value

69,189.27 + 5,915.64 + 6,388.89 - 27,000 = 54,493.8

The payback will be the time perdion when the project recovers it initial cost:

we first add the income from the irregular years and subtract from the investment

6,900 + 8,100 = 15,000

27,000 - 15,000 = 12,000

then we use the general formula investment/cash flow per year

12,000/9,300 = 1.29

the project need the first two years and then 1.29 years

2 + 1.29 = 3.29 years

6 0
3 years ago
Suppose that you purchase a 182-day Treasury bill for $9,850 that is worth $10,000 when it matures. The security's annualized yi
Ivahew [28]

Answer:

Annual interest rate= 3%

Explanation:

Giving the following information:

Present value= $9,850

Future value= $10,000

Number of days= 182

<u>First, we need to calculate the daily interest rate. We will use a financial calculator (the formula is incredibly difficult to use):</u>

<u></u>

Function= CMPD

n= 182

I%= SOLVE = 0.0083

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<u>Now, the annual interest rate:</u>

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3 years ago
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Answer:

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Real income of an individual refers to the income which has been adjusted for the effects of inflation. Whereas, Nominal income refers to the income which is before any such adjustment for inflation.

In the given case, the nominal income has increased i.e if we ignore inflation. But while considering inflation, the real income of the individual has reduced evidenced by the fact that the purchasing power has reduced.

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Help!!<br>list 5 importance of freedom​
marusya05 [52]

Answer:

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