He needs to add %4 more apple juice because %12 - %8 = %4
Answer:
21.29%
Explanation:
The computation of the internal growth rate is shown below:
But before that we need to determine the following calculations
Debt equity ratio js
= debt ÷ equity
The debt is 0.6 of equity
So,
= 0.6 × $8,600
= $5,160
Now
Total assets = Total liabilities + Total equity
= $8,600 + $5,160
= $13,760
Return on assets = Net income ÷ Total assets
= $3450 ÷ $13760
= 0.2507
Now as we know that
Retention ratio = 1 - payout ratio
= 1 - 0.3
= 0.7
And, finally
The Internal growth rate is
= (Return on assets × Retention ratio) ÷ [1 - (Return on assets × Retention ratio)]
= (0.2507 × 0.7) ÷ [1 - (0.2507 × 0.7)]
= 21.29%
Answer:
Of course you should be concerned about negative cash outflows resulting from investing or financing activities.
Negative cash outflows for investing activities means that the company purchased more fixed assets or securities this year than the ones that were sold. E.g. the company purchased new equipment for $100,000. Investing activities usually require large amounts of cash.
If financing activities yield negative numbers, it means that either the company paid too much in dividends, or they paid long term debts (e.g. retired bonds or paid back bank loans), but at the same time did not raise enough capital to offset them.
When you are analyzing the finances of a company, cash is king. A company might be very profitable, but it will not survive it its cash flows are negative. If there are enough positive cash flows from operating activities to offset these other cash outflows, then the company should be OK. But if operating cash flows cannot offset them, then the company should be concerned.
Answer:
It is False
The law of one price (LOOP) states that in the absence of trade frictions (such as transport costs and tariffs), and under conditions of free competition and price flexibility (where no individual sellers or buyers have power to manipulate prices and prices can freely adjust), identical goods sold in different.
Answer:
4 millions
Explanation:
First, we will check how much was amortizate for the first loan:
Principal 100 million
on 10 equal payment
amortization per year 100/10 = 10 millions
we refinance at the end of the fourth installment
10 x 4 = 40 millions
The principal at the end of year four:
Principal 100 millions - 40 millions = 60 millions
This amount will be paid on 15 years with 15 equal payment
60 million / 15 years = 4 millions
