Suppose that Wind Em Corp. currently has the following balance sheet, and that sales for the year just ended were $7 million. The firm also has a profit margin of 27 percent, a retention ratio of 20 percent, and expects sales of $8 million next year. If all assets and current liabilities are expected to grow with sales, what amount of additional funds will Wind Em need from external sources to fund the expectedgrowth?
Answer to relevant QuestionsSuppose a firm has had the historic sales figures shown as follows. What would be the forecast for next year’s sales using regression to estimate atrend?Sara’s Ice Cream Shop is closed for six months out of the year, but has had the monthly sales amounts listed as follows for the last four years. Assuming that there is both seasonality and a trend, estimate monthly sales ...Suppose that Lil John Industries’ equity is currently selling for $27 per share and that there are 2 million shares outstanding. The firm also has 50 thousand bonds outstanding, which are selling at 103 percent of par. ...NoNuns Cos. has a 25 percent tax rate and has $350 million in assets, currently financed entirely with equity. Equity is worth $37 per share, and book value of equity is equal to market value of equity. Also, let’s ...If a firm has retained earnings of $23 million, a common shares account of $275 million, and additional paid-in-capital of $100 million, how would these accounts change in response to a 20 percent stock dividend? Assume ...
Post your question