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4 years ago

Major Manuscripts, Inc.

Business

1 answer:

Lisa [10]4 years ago

6 0

Answer:

Projected total assets = $10,318 

Projected retained earnings = $4,675.30 

Additional new debt required = $537.70

Explanation:

external financing needed = EFN = [(total assets/total sales) x ($ Δ sales)] - [(total current liabilities/total sales) x ($ Δ sales)] - [profit margin x forecasted sales in $ x (1 - dividend payout ratio)]

total assets = $9,380, projected total assets = $9,380 x 1.1 = $10,318

total sales = $7,800

$ Δ sales = $780

current liabilities = $1,550

profit margin = net income / sales = $410 / $7,800 = 0.052564

forecasted sales = $7,800 x 1.1 = $8,580

dividends payout ratio = dividends / net income = $187 / $410 = 0.4561

EFN = [($9,380/$7,800) x ($780)] - [($1,550/$7,800) x ($780)] - [0.052564 x $8,580 x (1 - 0.4561)]

EFN = $938 - $155 - $245.30 = $537.70

projected retained earnings = current retained earnings - projected net income - projected dividends = $4,430 + $451 - $205.70 = $4,675.30

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Answer:

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3 years ago

Excess return portfolio performance measures

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Answer:

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4 years ago

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Answer: Incentives.

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3 years ago

If the company were to issue an annual zero-coupon bond with a maturity of 2 years and par value of $1,000, what would be the ar

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Answer:

Note: The complete question is attached as picture below

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PV * (1 + S1) = FV

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S1 = 0.1111

S1 = 11.11%

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2 years ago

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