Define the term “capital intensity.” Explain how a decline in capital intensity would affect the AFN, other things held constant. Would economies of scale combined with rapid growth affect capital intensity, other things held constant? Also, explain how changes in each of the following would affect AFN, holding other things constant: The growth rate, the amount of accounts payable, the profit margin, and the payout ratio.
Answer to relevant QuestionsDefine the term “self-supporting growth rate.” Based on the Figure MC-1 data, what is Hatfield’s self-supporting growth rate? Would the self-supporting growth rate be changed by a change in the capital intensity ratio ...Now repeat the analysis done for question f but assume that Hatfield is able to achieve industry averages for the following input variables: Operating costs/Sales, Receivables/Sales, Inventories/Sales, and Fixed ...Use the following income statements and balance sheets to calculate Garnet Inc.’s free cash flow for 2011.GarnetInc.The balance sheet of Roop Industries is shown below. The 12/31/2010 value of operations is $651 million, and there are 10 million shares of common equity. What is the intrinsic price per share? Balance Sheet, December 31, ...The second acquisition target is a privately held company in a growing industry. The target has recently borrowed $40 million to finance its expansion; it has no other debt or preferred stock. It pays no dividends and ...
Post your question