1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Bezzdna [24]
3 years ago
8

he Steel Mill is currently operating at 84 percent of capacity. Annual sales are $28,400 and net income is $2,250. The firm has

current liabilities of $2,700, long-term debt of $9,800, net fixed assets of $16,900, net working capital of $5,000, and owners' equity of $12,100. All costs and net working capital vary directly with sales. The tax rate and profit margin will remain constant. The dividend payout ratio is constant at 40 percent. How much additional debt is required if no new equity is raised and sales are projected to increase by 12 percent?
Business
1 answer:
nignag [31]3 years ago
8 0

Answer:

-911.51 the debt will decrease if sales increase 12%

Explanation:

sales: 28,400

increase of 12%

new sales:  31,808

<em><u>profirt margin:</u></em>

2,250/28,400 = 0.0792 = 7.92%

income: 31,808 x 7.92% = 2,519.19

retained earnigns grow: (1-payout ratio) = 0.6

2,519.19 x 60% =  1,511.514‬

Increase in working capital: 5,000 x 12% = 600

Asset requirement - reteined earnigns grow = financial needs

600 - 1,511.51 = -911.51

You might be interested in
Why do all shareholders agree on the same goal for the financial​ manager??
maxonik [38]
Most likely because they are directly financially benefiting from a financial managers good performance through their shares of stock.
6 0
4 years ago
Step 4: Use the line chart to determine the approximate price of the stock at the beginning of 2003. How much money would you ha
Valentin [98]

The amount of money earned with the purchase of one share of stock at the beginning of 2003 and selling it at today's current price is <u>$22.81</u> ($61.81 - $39).

<h3>What is the price of stock?</h3>

The price of a share of stock is the cost that is paid to buy it or the revenue received when it is sold.

The price of a stock reflects the value that investors place on the issuing company.

Thus, the amount of money earned with the purchase of one share of stock at the beginning of 2003 and selling it at today's current price is <u>$22.81</u>.

Learn more about determining the price of a stock at brainly.com/question/8084221

5 0
2 years ago
A marketing research project might involve analyzing ______ collected from grocery store scanners in order to produce ______ tha
eduard

Answer:

The correct answers that fills the gaps are: Data; information.

Explanation:

Market research can be defined as the collection and analysis of information, regarding the world of business and the market, carried out systematically or expressly, in order to make decisions within the field of strategic and operational marketing.

It is, in short, a powerful tool, which should allow the company to obtain the necessary information to establish the different policies, objectives, plans and strategies most appropriate to its interests.

The American Marketing Association (AMA) defines it as: "the systematic collection, recording and analysis of data about problems related to the market for goods and services."

3 0
3 years ago
What is the reason for putting yourself on a budget?
gavmur [86]

Answer: D. To keep your expenses below your income

8 0
2 years ago
Read 2 more answers
1. Describe a real or made up but realistic situation that could cause you or someone you know to have to use money from a finan
Rus_ich [418]
1.A realistic situation in which can cause someone to use money from a financial reserve is to payoff a medical bill. Another situation would be if say, you had to pick up and move. You would need enough money to not only purchase your residence, but also movers, necessities, and they deposit.

2. The financial reserve should have enough money to last a at least 6 months. There should definitely be enough money to purchase food and necessities. Depending on how big your family is and how much you spend affects the duration of the amount of funds. Also what you choose to spend your money on is a big key factor.

3. I would rather have a compound interest when it comes to a savings account.An account with simple interest will take money from you, rather than save it. When it comes to putting money into an account that offers interest, you want to get the highest interest rate possible, so that your money grows as fast as possible. A compound interest will “compact” your money as much as possible, saving you more.
8 0
3 years ago
Other questions:
  • Describe two types of organizational documents that can help you organize a job search. What is the purpose of each document? ne
    6·1 answer
  • Stickiness is an important attribute for which revenue model?
    10·1 answer
  • A predetermined manufacturing overhead rate is calculated in the same manner as an actual manufacturing overhead rate except tha
    5·1 answer
  • Jocelyn contributes land with a basis of $60,000 and fair market value of $90,000 and inventory with a basis of $5,000 and fair
    9·1 answer
  • Jordan files his income tax return on a calendar-year basis. he is the principal partner of a partnership reporting on a june 30
    10·1 answer
  • A grievance isGroup of answer choicesan implication that management has broken a management-union agreement, but it must be prov
    9·1 answer
  • Diversification is an important part of investing because
    13·1 answer
  • Which NIMS structure develops, recommends, and executes public information plans and strategies?
    14·1 answer
  • Galaxy Air, previously a no-growth firm, has two million shares outstanding. Until now, it consistently earned $20 million per y
    6·1 answer
  • A company had net income of $2,660,000, net sales of $25,000,000, and average total assets of $8,000,000. Its return on total as
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!