Question: How would changes in these items affect the AFN
How would changes in these items affect the AFN? (1) sales increase, (2) the dividend payout ratio increases, (3) the profit margin increases, (4) the capital intensity ratio increases, and (5) SEC begins paying its suppliers sooner. (Consider each item separately and hold all other things constant.)
Answer to relevant QuestionsBriefly explain how to forecast financial statements using the percent of sales approach. Be sure to explain how to forecast interest expenses.What level of sales could have existed in 2004 with the available fixed assets?Now calculate roe for both firms.Considering only the capital structures under analysis, what is Pizza Palace’s optimal capital structure?What reasons might SKI have for maintaining a relatively high amount of cash?
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