Question: I need questions a, e, h, i. Please Show your work, thank you. Based on the following information for Barely Beagle Brothers Mining Company, what
I need questions a, e, h, i. Please Show your work, thank you.
- Based on the following information for Barely Beagle Brothers Mining Company, what is the EFN If analysts predicted sales to grow by 10% in 2020?
- What is Barely Beagle's EFN if the company was operating at 60% capacity for net fixed assets? Assume that Barely Beagle plans to sell any excess fixed assets.
- What is Barely Beagle's EFN if the company was operating at 60% capacity for net fixed assets? Assume that Barely Beagle does not plan to sell any excess fixed assets.
- What is Barely Beagle's EFN if the company operated at 95% capacity for net fixed assets? Assume that Barely Beagle plans to sell any excess fixed assets.
- What growth rate can Barely Beagle Brothers maintain if they use no external financing?
- What is Barely Beagle Brothers' sustainable growth rate?
- What is the difference between the internal growth rate and the sustainable growth rate?
- Is it possible that a company that maintains a sustainable growth rate would take on a growing percentage of debt in its capital structure?
- When thinking about (but not calculating) the sustainable growth rate, what are the determinants of growth?
| Barely Beagle Brothers Mining Company 2019 Financial Statements | ||||||||
| Income Statement | Balance Sheet | |||||||
| Assets | Liabilities & Owners' Equity | |||||||
| Sales | $4,250 | Current Assets | $900 | Current Liabilities | $500 | |||
| Costs | $3,875 | Net Fixed Assets | $2,200 | Long-Term Debt | $1,800 | |||
| Taxable Income | $375 | Owner's Equity | $800 | |||||
| Taxes (21%) | $78 | Total Assets | $3,100 | Total Liability & Equity | $3,100 | |||
| Net Income | $297 | |||||||
| Dividends Paid | $98 | |||||||
| Additions to Retained Earnings | $199 |
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