How much money does my business need to borrow next year? My company is forecasting at 10%

Fantastic news! We've Found the answer you've been seeking!

Question:

How much money does my business need to borrow next year?

My company is forecasting at 10% growth next year. Last year we made $1.2M Net Income. We have $10M in assets and pay out 50% in dividends.

What is the borrowing requirement if we commit to 20% growth next year?

What about if we commit to 20% growth and decrease the plowback rate to 40%?

Related Book For answer-question

Foundations of Financial Management

ISBN: 978-1259024979

10th Canadian edition

Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta

See More Books

Posted Date: Apr 06, 2023 01:58 AM

See More Questions

Use the following wait times (minutes) for the Space Mountain ride at Disney World (from Data Set 33 Disney World Wait Times in Appendix B). Construct a 95% confidence interval estimate of the mean...
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
Fletcher, Inc. disposes of under- or over-applied overhead at year-end as an adjustment to cost of goods sold. Prior to disposal, the firm reported cost of goods sold of $619,000 in a year when...
The function f(x) = 2e-1.5x can be used to generate the following table of unequally spaced data: Evaluate the integral from = 0 to b = 0.6 using (a) Analytical means, (b) The trapezoidal rule, and...
Prince Albert Canning PLC had a net loss of 21,435 on sales of 168,327. What was the companys profit margin? Does the fact that these figures are quoted in a foreign currency make any difference?...
The Joppa Corporation's sales department receives all sales order (mail or phone), prepares the sales order form, and forwards a copy to the credit manager for credit approval. On indicating...
Abs Health Club has the following cost equation: Total Costs = $40,000 + $80n, Where n = number of memberships. a. Calculate Abss average fixed cost per membership when there are 1,000 memberships....
Gallatin County Motors Inc. assembles and sells snowmobile engines. The company began operations on July 1 and operated at 1 0 0 % of capacity during the first month. The following data summarize the...
P Co acquired interests in Silver Co. The current financial statements are shown below. All figures are in dollars, unless as otherwise indicated. Additional information 1. The under-valued inventory...
Rights originally created by contracts can have, in effect a preferred value to the recipient when they are received by the process of "instrument negotiation" than when they received by way of the...
BEST PRACTICES FOR CYBERSECURITY ETHICSNo single, detailed code of cybersecurity ethics can be fitted to all contexts and practitioners;organizations and professions should therefore be encouraged to...
Completion 20. A(n) is an integrated circuit designed to process instructions. 21. Processors based on technology dominate tablet computers and smartphones. 22. processors are found in Microsoft's...
explain last five lines in detail public void add(int index, Object obj) throws IndexOutOfBounds Exception { if( index > size || index < 0 ) throw new IndexOutOf Bounds Exception ("Index: + index +...
A hierarchical way of associating host names with IP addresses is known as: a ARP: b DNS; c RARP; d IP; interface can carry traffic of multiple VLANs. a Access ports b Network ports c Trunk ports d...
1. "How is the buying behavior of the two customers similar, and how is it different? 2. From a marketing perspective, how could TSL use the information gained from talking to the two customers? 3....
Go to this Discussion Board and share your thoughts in 100 to 150 words. Your post should address the following: Scenario : The CFO of the company has just sent an email letting you know that the...
Velshi Printers has contracts to complete weekly supplements required by fortysix customers. For the year 2018, manufacturing overhead cost estimates total $600,000 for an annual production capacity...
In doing a five-year analysis of future dividends, Newell Labs Inc. is considering the following two plans. The values represent dividends per share. a. How much, in total dividends per share, will...
Jack Hammer invests in a stock that will pay dividends of $2.00 at the end of the first year; $2.20 at the end of the second year; and $2.40 at the end of the third year. Also, he believes that at...
Name the major competitors for funds in the capital markets.
True or false? Explain: hierarchy reduces complexity because A. It reduces the size of individual modules. B. It cuts down on the number of interconnections between elements. C. It assembles a number...
True or false? Explain: modularity reduces complexity because A. It reduces the effect of incommensurate scaling. B. It helps control propagation of effects.
Consider the part of the file system naming hierarchy illustrated in the following: a. In the path name and in the figure, identify the context that you should use for that resolution and the context...

How much money does my business need to borrow next year? My company is forecasting at 10%

Question:

Expert Answer:

To calculate the borrowing requirement for next year we need to estimate the additional funds requir... View the full answer

Foundations of Financial Management

Students also viewed these accounting questions